Tech Breakup Coming?
The Democratic staff of the House Antitrust Subcommittee concluded that America’s biggest tech companies wield too much power and recommended that they be broken up. This comes as the conclusion of a 16-month inquiry into the market power of the tech giants, which included testimonies from high profile CEOs.
The report ruled that Facebook and Google have monopoly power, and that Apple and Amazon have “significant and durable market power.” It recommended that Congress should consider forcing the companies to separate their dominant online platforms and business lines so they cannot use their dominance to eliminate competition and limit innovation.
House Republicans issued a separate response that supported limiting the power of the four companies. However, there isn’t exactly a bipartisan coalition on the issue. The GOP opposes many of the policies recommended by the Democratic subcommittee and has separate motivations for breaking up big tech. Their focus is much more on the monopoly information flow than business power.
Legislation to break up the four companies will likely not come until after the election but keep an eye on the narrative around big tech out of Washington over the next month. Will the similar goals of breaking up big tech echo on both sides, or will politicians point out the difference in motivations which could derail any cooperation?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
