Elizabeth Warren promises to break up tech giants if elected in 2020

US Democratic party senator in Massachusetts, Elizabeth Warren, who is vying to be the Democratic candidate in the 2020 presidential elections has proposed the breaking up of tech giants like Amazon, Facebook, and Google if elected to the presidency. For some time, there have been direct calls to limit the influence of big tech companies. In 2018 Google spent USD21 million and Facebook USD14 million to lobby politicians of both parties.

Her regulatory plan, using the government's anti-monopoly power, would force the reversal of some tech mergers and stop companies from competing on their own platforms. This would promote competition and safeguard small businesses she has claimed. Under the plan, Amazon’s acquisition of Wholefoods would be reversed, as would Facebook's merger with WhatsApp and Instagram, and Google's with Waze. She would also stop Amazon selling on its own Amazon Marketplace platform.

Warren plans to create two tiers of companies that would fall under the new regulations: those with annual global revenue of USD25 billion or more, and those with annual revenue of USD90 million to USD25 billion. The upper tier would be required to “structurally separate” their products from their marketplace. Smaller companies would be subject to regulations but would not be forced to separate themselves from the online marketplace. Her aim is not to undermine big tech, but just make it more competitive.

Warren became well-known after the 2008 economic collapse, championing the creation of the Consumer Financial Protection Bureau, a government agency that would serve as a Wall Street watchdog and public advocate. This is a bold move as Silicon Valley, and its wealthy donors are vital to other candidates for the presidency.