Wall Street critic Warren vows to break up Amazon, Facebook, Google

By Daniel Trotta

 

Democratic 2020 U.S. presidential candidate and U.S. Senator Elizabeth Warren (D-MA) arrives a Senate Banking and Housing and Urban Affairs Committee hearing on "The Semiannual Monetary Policy Report to Congress" on Capitol Hill in Washington, U.S., February 26, 2019. REUTERS/Jim Young

 

NEW YORK (Reuters) - Senator Elizabeth Warren vowed on Friday to break up Amazon,Google and Facebook if elected U.S. president to promote competition in the technology sector.

 

Seeking to stand out in a crowded field vying to be the Democratic candidate for president in 2020, Warren said at a campaign event in Queens that it was time to challenge the increasing dominance of America's biggest technology companies.

 

"We have these giant tech companies that think they rule the earth," she told a crowd of about 300 people in Long Island City. "I don't want a government that's here to work for the giant tech companies. I want a government that's here to work for the people."

 

Amazon abruptly scrapped plans in February to build a major outpost in the neighbourhood that could have created 25,000 jobs, blaming opposition from local leaders.

 

In an event held not far from the proposed Amazon site, Warren said that big tech companies come into towns, cities and states and "bully everyone into doing what they want" and "roll right over" small businesses and startups that are a threat.

 

"Giants are not allowed to buy out the competition. The competition needs the opportunity to thrive and grow," she said.

 

Some of those in attendance said they didn't know enough about Warren's proposal to back it fully but they trusted her policy expertise.

 

"What I like is that she's proposing big ideas. I think that's important," said lawyer Kate Aufses, 32, who said she was undecided about which Democratic candidate she would support.

 

Earlier in the day, Warren said in a post https on Medium that she would nominate regulators to unwind acquisitions such as Facebook's deals for WhatsApp and Instagram, Amazon's deals for Whole Foods and Zappos, and Google's purchases of Waze, Nest and DoubleClick.

 

Shares of Facebook Inc closed up 0.3 percent on Friday, while Alphabet Inc's Google fell 0.08 percent and Amazon.com Inc lost 0.3 percent.

 

Warren also proposed legislation that would require tech companies like Google and Amazon that offer an online marketplace or exchange to refrain from competing on their own platform. This would, for example, forbid Amazon from selling on its Amazon Marketplace platform.

 

Amazon and Google did not immediately respond to requests for comment. Facebook declined comment.

 

It is rare for the government to seek to undo a consummated deal. The most famous case in recent memory is the government's effort to break up Microsoft. The Justice Department won a preliminary victory in 2000 but was reversed on appeal. The case settled with Microsoft intact.

 

"AN ARCHAIC IDEA"

 

U.S. Congress held a series of hearings last year looking at the dominance of major tech companies and their role in displacing or swallowing up existing businesses, among other things.

 

Amazon's business model has displaced brick-and-mortar stores and the company has been criticized for poorly paying its warehouse workers.

 

Facebook has angered lawmakers for losing track of users' data and for not doing more to stop foreign meddling in the 2016 U.S. presidential election.

 

Google has clashed with smaller companies, like Yelp, over search placements and has raised concerns it would comply with China's internet censorship and surveillance policies if it re-enters the Asian nation's search engine market.

 

NetChoice, an e-commerce trade group whose members include Facebook and Google, said Warren's plan would lead to higher prices.

 

"Senator Warren is wrong in her assertion that tech markets lack competition. Never before have consumers and workers had more access to goods, services and opportunities online," said Carl Szabo, vice president and general counsel for NetChoice.

 

In Washington, the president of the U.S. Chamber of Commerce, Tom Donohue, said breaking up the big tech companies would "take us back to the Stone Age."

 

"This is not a vision for the future, but an archaic idea that should be dumped in your computer trash can," he said.

 

Public Knowledge, a tech policy group, called Warren's plan a step towards protecting the next generation of businesses, but stopped short of full-throated support for breaking up the tech giants.

 

Tim Wu, a professor of law, science and technology at Columbia Law School who coined the term "net neutrality" and has warned against an economy dominated by a few giant firms, said in a tweet that it was "heartening" to see the idea of breaking up the tech giants gaining some traction.

 

Tech companies are some of the biggest political donors. Google spent $21 million to lobby in 2018 while Amazon spent $14.2 million and Facebook spent $12.62 million, according to their filings to U.S. Congress.

 

Angering a deep-pocketed industry could hurt Democrats, but that is not likely to be a big concern for Warren, who made her political mark and plenty of enemies by going after big banks after the 2007-09 financial crisis. In the Senate, Warren continues to be an outspoken critic of Wall Street and is a leader of her party's progressive wing.

 

Other Democratic candidates have also weighed in on the issue.

 

Senator Amy Klobuchar used her campaign launch speech to vow action on digital issues like privacy, saying "big tech companies" misuse personal data.

 

Senator Bernie Sanders in 2018 even named a bill after Amazon founder Jeff Bezos, the Stop BEZOS Act, which would tax big companies if their employees receive public benefits.

 

-- © Copyright Reuters 2019-03-10

It will never happen.  All the other politicians know what side of the bread is buttered and what share of the sandwich is theirs.

It will never happen because Warren lacks the leadership appeal to get the point where she could try and make it happen !

25 minutes ago, neeray said:

It will never happen because Warren lacks the leadership appeal to get the point where she could try and make it happen !

That's not the reason. The reason is Democrats are just Republican lite now and she'll be fighting her own constituency.  It's a good idea though and she could spearhead it better from a position on the Senate committee overseeing the Justice Dept. better than as president.

Edited March 10, 20197 yr by lannarebirth

She and the rest of the Democrats/left of center/liberals/progressives/democratic socialists/socialists (have I forgotten any of their identity politics monickers?) are better suited to sit on a council for peace and order in a country that needs to return happiness to the people.

I think that this was a politically inept move. Whatever the virtues of the case, most Americans who use these services are very happy with them as consumer polling has repeatedly shown. She should stick to going after the financial industry and its massive and repeated abuses of the financial system.

It will never happen...

 

America can not even get in place reasonable gun control because "Money Talks" and Amazon, Facebook and Google have more money than the NRA.

 

Just look at Microsoft, used the courts to swat the competition, then with a monopoly on operating systems we have had to migrate from to another while the security of the products have more holes than a Swiss cheese.

 

I don't use Facebook, and I like Google and Amazon just the way they are thankyou. 

Warren is getting a lot of blow-back about this from her supporters on Facebook.  I disagree with it also.  There might be a lot of issues with tech giants like privacy and data management policies, but that can be addressed with regulation, not by breaking companies up.  

 

Warren should be talking about how she'll shore-up the ramparts of democracy, and what steps she & congress will take to make sure than a wannabe dictator (in either party) never gets elected again (or if one does get elected, there will be a lot more transparency and a lot less nepotism).

Transparency is good, but I didn't see any disclosure by anyone deriding this idea if they held any of these stocks in one investment vehicle/account or another.

 

https://www.businessinsider.com/elizabeth-warren-call-to-break-up-amazon-google-is-a-real-threat-2019-3

Edited March 10, 20197 yr by lannarebirth

Scott Galloway's deep coverage of these companies probably provided the genesis of Warren's initiative. He know's what he's talking about and he's no politician.

 

https://www.esquire.com/news-politics/a15895746/bust-big-tech-silicon-valley/?src=nl&mag=esq&list=nl_enl_news&date=020818

13 hours ago, Basil B said:

It will never happen...

America can not even get in place reasonable gun control because "Money Talks" and Amazon, Facebook and Google have more money than the NRA.

Just look at Microsoft, used the courts to swat the competition, then with a monopoly on operating systems we have had to migrate from to another while the security of the products have more holes than a Swiss cheese.

You think Microsoft has a monopoly in operating systems?

15 hours ago, bristolboy said:

I think that this was a politically inept move. Whatever the virtues of the case, most Americans who use these services are very happy with them as consumer polling has repeatedly shown. She should stick to going after the financial industry and its massive and repeated abuses of the financial system.

Not the people deplatformed for wrongthink.

Having them broken up and more competition would go some way to stopping this.

3 hours ago, SheungWan said:

You think Microsoft has a monopoly in operating systems?

For many it is the only option as a lot of software only only works on a windows platform, Yes, there is Linux and Android but one needs a lot of computer knowledge to run them on a PC or Laptop, 

We should dispose of both houses before they mess with people and companies that actually do something. 

Pretty thin on trolls these days, is it holiday time in Russia?

 

 

There is no real logical way how any of those companies can be broken up. I mean: look at Facebook, what would be the two or three parts you break it up into?

Proposals like that wannabee president make no sense at all.

Let her break up amazon. As a shareholder it would,only benefit me. AMZN trades at around $1,620 if they break it up and split the stock into 6 different companies I would love it. 

 

This is what happened back in the day to Rockefeller and Standard. Warren is completely mentally deficient and  it shows in a big way.

An Apple site i go to is ,Macrumors. 

 

It is overall creative pros that lean left. Bezos even pandered to the left and implemented a wage structure based upon the $15 Sanders insisted upon.

 

The thanks Bezos has received has been what Warren is proposing. Amazon pays higher wages than anybody and it is hurting workers as they don’t need as many. They also don’t work as many hours. The $15 min wage is utter nonsense. Meanwhile Cuomo and others beg Amazon to reconsider and for Bezos to do so would be an act of stupidity.

 

warren is so far out of touch it is embarrassing. I am going to get me a beer.

Edited March 11, 20197 yr by Cryingdick

3 hours ago, Basil B said:

For many it is the only option as a lot of software only only works on a windows platform, Yes, there is Linux and Android but one needs a lot of computer knowledge to run them on a PC or Laptop, 

You left out Safari and Chrome.

14 hours ago, Ulic said:

I don't use Facebook, and I like Google and Amazon just the way they are thankyou. 

most people will only see the consumer side.

 

try doing business with these companies they use you and spit you out when done

 

plus consumers are being cheated. Only the most corrupt, underhanded or wealthy businesses get to win on these platforms

 

 

 

Edited March 11, 20197 yr by NightSky

4 hours ago, Cryingdick said:

Let her break up amazon. As a shareholder it would,only benefit me. AMZN trades at around $1,620 if they break it up and split the stock into 6 different companies I would love it. 

 

This is what happened back in the day to Rockefeller and Standard. Warren is completely mentally deficient and  it shows in a big way.

An Apple site i go to is ,Macrumors. 

 

It is overall creative pros that lean left. Bezos even pandered to the left and implemented a wage structure based upon the $15 Sanders insisted upon.

 

The thanks Bezos has received has been what Warren is proposing. Amazon pays higher wages than anybody and it is hurting workers as they don’t need as many. They also don’t work as many hours. The $15 min wage is utter nonsense. Meanwhile Cuomo and others beg Amazon to reconsider and for Bezos to do so would be an act of stupidity.

 

warren is so far out of touch it is embarrassing. I am going to get me a beer.

"Let her break up amazon. As a shareholder it would,only benefit me. AMZN trades at around $1,620 if they break it up and split the stock into 6 different companies I would love it."

So are you claiming that a stock split would be good for shareholders but bad for Amazon.

 

"Amazon pays higher wages than anybody...

Got some evidence for that?

 

"They also don’t work as many hours. The $15 min wage is utter nonsense."

Really?

https://www.nber.org/papers/w25182.pdf

https://www.nytimes.com/interactive/2019/02/21/magazine/minimum-wage-saving-lives.html

 

"Warren is completely mentally deficient and  it shows in a big way."

But you know the worst thing about Elizabeth Warren? Instead of citing evidence and using reasoned arguments. she just employs empty insults. And Oh, wait a minute..that's not her. That's you.

Lots of room to go after other monopolists and market distorters as well. Should put Walmart, Boeing, Cisco, and Disney in the crosshairs too.

4 hours ago, SheungWan said:

You left out Safari and Chrome.

Are they not just Web Browsers?

1 hour ago, zydeco said:

Lots of room to go after other monopolists and market distorters as well. Should put Walmart, Boeing, Cisco, and Disney in the crosshairs too.

????

But looks more like she has just put her own foot in the crosshairs, Facebook & Google can influence the elections. 

32 minutes ago, Basil B said:

Are they not just Web Browsers?

Yes, but. I got the name wrong for Apple who have MacOS. ChromeOS is a separate OS for Chromebooks. The share of operating systems is wider if one considers not just consumer PCs etc., but all devices. 

https://en.wikipedia.org/wiki/Usage_share_of_operating_systems

 

4 minutes ago, SheungWan said:

Yes, but. I got the name wrong for Apple who have MacOS. ChromeOS is a separate OS for Chromebooks. The share of operating systems is wider if one considers not just consumer PCs etc., but all devices. 

https://en.wikipedia.org/wiki/Usage_share_of_operating_systems

 

Chrome has nothing to do with Apple.

It is Google's baby...

5 minutes ago, Basil B said:

Chrome has nothing to do with Apple.

It is Google's baby...

I did not say that ChromeOS was connected with Apple. My focus is pointing out that Windows does not have a monopoly in operating systems.

Edited March 11, 20197 yr by SheungWan

19 minutes ago, SheungWan said:

I did not say that ChromeOS was connected with Apple. My focus is pointing out that Windows does not have a monopoly in operating systems.

You have lost face.

2 minutes ago, zydeco said:

You have lost face.

Did you send that from your Windows Smartphone?

Well she sure is trying to stand out in a crowded field.Two weeks ago it was reparations to african americans for slavery.Now tech giants are too powerful and need to be broke up.Good luck little miss can't do wrong with I am the government I know how to run a buisness.Those who can do,those who can't teach.