US Senator Elizabeth Warren has proposal to break up Amazon
The US presidential candidate proposes a plan to break up big tech corporations.
US Senator, Elizabeth Warren, recently unveiled a proposal to break up big tech companies, like Amazon, Facebook, and Google. The 2020 US presidential candidate wrote about her plan in a blog post.
Why does Elizabeth Warren want to break up Amazon?
Senator Warren outlined her proposal in a blog post on big tech companies like Amazon that she perceives as monopolies. In a blog post, Warren wrote about how she would split the corporations.
‘The steps I’m proposing today will allow existing big tech companies to keep offering customer-friendly services, while promoting competition, stimulating innovation in the tech sector, and ensuring that America continues to lead the world in producing cutting-edge tech companies,’ wrote Warren.
‘Here’s what will change: Small businesses would have a fair shot to sell their products on Amazon without the fear of Amazon pushing them out of business,’ wrote Warren.
Warren’s first step would be to break up different aspects of a company through legislation. For example, Amazon Marketplace, a third-party vendor would have to split from AmazonBasics, the company’s personal brand.
Second, she would appoint regulators to stop mergers between tech companies, like Facebook’s acquisition of What’s App.
‘Google couldn’t smother competitors by demoting their products on Google Search. Facebook would face real pressure from Instagram and WhatsApp to improve the user experience and protect our privacy. Tech entrepreneurs would have a fighting chance to compete against the tech giants,’ wrote Warren.
Could Elizabeth Warren succeed in breaking up Amazon?
There is scepticism that Warren’s plan will pass in the US Congress. Herbert Hovenkamp, professor at the University of Pennsylvania law school, said that the proposal may not pass before the next election.
‘It won’t pass before the next election for sure and I think there’s going to be a lot of pushback even within the Democratic party and the reason is these broad-scale divestiture or breakup provisions are likely to produce much higher prices,’ noted Hovenkamp.
Regardless of the outcome of the proposal, Warren has sparked discussions about how powerful tech companies should be.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 30 January 2025.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
