Senator Elizabeth Warren who is one of the candidates for presidential elections in 2020 has unveiled plans to break down large corporates like Facebook, Amazon and Google that would limit the power of Silicon Valley. In a recent blog post this Democratic candidate wrote that big structural changes have to be made within tech sector to allow competition. These changes could include breaking down companies like Facebook, Amazon and Google that have recently come under scrutiny for user data theft and consolidation of services in e-commerce and digital advertising.
She further wrote that today these tech firms have unlimited power over economy, society and democratic systems. These have grown to such level that competition has almost been eliminated and tilted level playing field against everyone. To achieve these levels they have used private information for profit and hurt small businesses while stifling innovation. Her proposal comes amidst calls from consumers and workers seeking protection from abuses of Silicon Valley. Another presidential hopeful Senator Amy Klobuchar has proposed legislation for protection of consumer data from platforms like Facebook that share user information with third party advertisers.
Her plan would have two critical components one of which would include setting up legislation to designate firms that have annual global revenue of $25 billion as “platform utilities that offer the public an online marketplace or platform that connects third parties together. She said that these firms would then be prohibited from owning either the platform utility or participants on it and these platform utilities would not be allowed to transfer and share data with third parties. She said that this system will also lead to split of Amazon Marketplace from Amazon-Basics and even Google would need to spin off its search business. She announced that regulators would be appointed to undo anti-competitive mergers like Amazon-Whole Foods, Facebook-WhatsApp-Instagram and also Google-Waze.