Sen. Elizabeth Warren gave food for serious thought Friday. The Democratic presidential candidate announced that if she won the upcoming elections in 2020, her administration would break up the influential tech giants in the industry, including Amazon, Facebook, and Google.
In her view, it would make the next generation tech firms flourish. Warren, a well-known Wall Street enemy, wrote in a blog post that her administration would make sure that even the largest and most influential companies in the country play by the rules.
She also accused the big tech firms in using their political power to amend the rules in their best interest and in using their economic advantage to blow out or acquire every potential competitor.
Warren's proposal has been the most stringent one taken by a presidential candidate so far. Referring to the antitrust battle over Microsoft in the early 90s, she asserted the government should break up these companies to encourage competition and technological innovation in a somewhat monopolistic market.
Warren's detailed plan includes passing legislation concerning platforms with more than $25 billion in revenue as ''platform utilities.'' What does it mean? It means that these platforms will no longer be allowed to own both the platform and its participants at the same time. As per the proposal, Google would have to spin off Search and Amazon to spin off Marketplace.
However, the law would not apply to smaller firms, pointed out Sen. Warren.
If taking the Oval office, Warren would not stop here in her fight with the tech giants. Moreover, she would also assign regulators to reverse mergers that have already been completed. In her proposal, she even mentioned the exact alliances she had in mind, namely Amazon's acquisition of Whole Foods, Facebook's take over of WhatsApp and Instagram, as well as Google's purchase of Waze and Nest.
According to internal sources, familiar with Warren's agenda, the presidential candidate would further expand her ideas during the weekend, when she would attend the Southwest Conference in Austin, Texas.
New York State Sen. Julia Salazar, a Democratic Socialist ally of Rep. Alexandria Ocasio-Cortez, who publicly opposed the New York's plans to bring Amazon's second headquarters to Queens, was among the first political allies to welcome Warren's proposal.
In a statement released Friday, Salazar appreciated Warren's efforts to take monopolistic market power seriously.
The idea of taking antitrust measures against the tech industry has not been new to the American political elite. However, while numerous lawmakers suggested regulation as an answer, a few went far beyond that to suggest an antitrust solution.
What about you? Do you support Sen. Warren's proposal?