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Breaking up Tech Giants: A Cure to Capitalism?

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Have we let the tech giant’s rule our lives beyond limits? It is a thoroughly deliberative thought, given the current tide of events. As we all know, the tech companies like Google, Facebook, Amazon have a horde of accusations lined up against them. The US Congress has also been brewing formula to tame the tech giants that have gone (grown?) wild. Recent policy violations and high-security breaches from the behalf of tech giants did not go well with the majority of American sentiments either. Breaking up tech giants has become crucial for the sustainability of the economy and market as a whole.

“To restore the balance of power in our democracy, to promote competition, and to ensure that the next generation of technology innovation is as vibrant as the last, it’s time to break up our most prominent tech companies” (Elizabeth Warren).

Why tame the bull?

Anyway, the tides are changing now. And, America today pays for its increased affinity for digitalization. Of all the tech-giants that rule Silicon Valley, Facebook and Google are the most notable ones that have invited lawmakers’ attention. The tech giants have shown their real faces through their unfair tactics. Therefore, breaking up tech giants has become a governmental concern too.

The unpleasant shades of popular tech giants

The bully, tech companies crave dominance in the digital world. Moreover, they tend to go to any length by consolidating power in the market to achieve their selfish ends. When potential rivals start taking more significant strides in the market, these companies nip them off by buying them at quoted prices.

When Facebook started facing competition vibes from WhatsApp and Instagram, it evenly consolidated the two and put an end to the competition. Any small rival on the way is calmly uprooted and avenged in no time. No regulatory challenges persist that can bar the tech giants from engulfing their competitors. Amazon smelt danger when some small e-commerce rival firms started aligning in the upfront. What the world next saw was Amazon’s relentless pursuit and buyout of all such e-commerce rivals. Google too is not an angel when it comes to rival acquisitions. Its buyout of DoubleClick demonstrates that the search engine giant is also following the same acquisition strategy.

Why breaking up tech giants? What’s wrong with them?

The tech-giants want a market that is free of competition and hardly any innovation. Any economists can tell you the perils of such a market. A market which has not enough innovation can never achieve progress.

The EU may be afraid of harnessing the prowling tech giants. The US lawmakers also have some reservations in curtailing the powers of tech giants. Various factors prevent them from acting accordingly. The US thinks that putting the lion behind bars is not that easy. The Chinese techs tend to invade the international domain, thus usurping the power of US tech giants. The Wall Street stock markets also will not have favorable results to show. Congress is apprehensive of the real-time consequences of the supposed regulations. Companies like Microsoft, McDonalds, and Walmart are blamed as Brands using prison labor. Many people believe that prison labor is modern slavery.

What is behind the game?

Google, Facebook, Amazon, and other parties of the top-level digital “eschatology” in the global market rely heavily on monopoly. Does the consumer get any benefit from the monopolistic tendencies of the tech giants? The answer is a grim no! The digital and technology market is on a downward spiral due to the monopolistic exhibitions of the tech giant.

The economic dynamism that existed before the saturation of such top-notch industries is no more. Have we got the ‘low prices’ that was widely publicized by the industries? Concerning the bill I paid last time, my answer to this question is again a big no. On the whole, these industry giants have been raising prices. It is not wise to let the tech giants go unregulated because consumer welfare is not part of their concern. The question here is why we should rally round an industry that has the least concerns of consumer welfare.

Why Warren is for breaking up tech giants

The million dollar giants have already taken advantage of the weak antitrust law frameworks and other loopholes in laws. The NYU professor Scott Galloway has even more compelling reasons to raise concerns about the dominance of these companies. Galloway opines, “The key to competitive markets is that no one company has too much power. Also, we have blown away by that” (O’Brien, par. 18).

Elizabeth Warren may or may not win the US elections. One cannot blame her for taking such a solid stance on the issue discussed here. Obviously, the tech companies have deceived the world with their fake promises and usurped the interests of the population at large. The illusions purported by these giants will not last forever. People have become concerned about the numerous incidents of anti-trust violations and security breaches. The lawmakers have recognized the significance of modifying their regulatory agenda to address the perils of a competition-free technology market. Evidently, dismantling the giants is the only way to resolve the issue.

References

Lecher, Colin. “Elizabeth Warren says she wants to break up Amazon, Google, and Facebook: A proposal to unwind Big Tech.” The Verge, Mar 8, 2019. https://www.theverge.com/2019/3/8/18256032/elizabeth-warren-antitrust-google-amazon-facebook-break-up

O’Brien, Chris. “Why breaking up Amazon, Google, Apple, and Facebook could save capitalism.” Venturebeat.com, January 25, 2018. https://venturebeat.com/2018/01/25/why-breaking-up-amazon-google-apple-and-facebook-could-save-capitalism/

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