3/11/2019 0 Comments
The presidential race in the United States is slowly starting part of the candidates who will try to win Democrats are already known. Senator Elisabeth Warren is one of 14 candidates to compete for a Democratic Party representative.
Probably the most interesting thing for us is its controversial attitude to major tech companies like Apple, Amazon, and Google.
The senator's plan for these companies is to separate. The reason for this is the defense of small and new businesses. Part of the actions to be taken is both review and probably annulment of some of the mergers (acquisitions) of companies. The senator mentions Google for Waze and Double Click; Facebook for Instagram and WhatsApp; Amazon for Whole Foods and Zappos.
"What I want is a government that will provide everyone, and the largest and most powerful companies in the United States to play by rules. I want to provide the next generation of American technology companies to make progress. For this we need to stop this generation of large companies that use their political power to shape the rules in their favor and to use their economic power to buy every potential competitor, "says the senator on her blog.
Here's what the potential split of these companies looks like:
All major companies like Google, Amazon, and Facebook will have to be registered as platforms. All other services and parts of companies will have to be separated from all platform participants.
Companies will be forbidden to own platforms and use platforms. In addition, there should not be any exchange of data between third parties and platforms. Platforms will have to meet standards for fair, reasonable operation and non-discrimination to their users.
According to the law that the Senator plans to adopt, Amazon Marketplace, Google Ad Exchange and Google Search would be platforms.
In addition, the law will also include measures to defend competition by banning the purchase of innovative competing companies. These legal solutions will prohibit purchases of companies like Facebook when they buy Instagram and WhatsApp, for example.
And where is Apple?
One of the giants that are not mentioned in the blog is Apple. If you thought the company was safe under these changes, you made a mistake. Apple is also one of the companies to be divided, says the senator in an interview with Verge.
"Apple needs to be separated from the App Store. They should either be a platform or participate in the store. It can not be both things at the same time. "
The senator identifies the current behavior of technology companies with the behavior of railroad owners when the railroads were built. Then the owners of the railway used their transportation of steel produced in plants that were in their possession. For their steel, the cost of transport was considerably lower compared to steal from competitors. Thus, companies managed to secure additional earnings by abusing their position on the market. The law now proposed by the senator is a kind of contemporary copy of this law.