Elizabeth Warren Adds Apple to List of Tech Firms to Be Broken Up

1 minute read
| News

Senator Elizabeth Warren added Apple to her list of big tech companies she wants broken up. She proposed classifying firms running a market place and generating annual revenue of over $25 billion as “platform utilities.”

Split Apple From the App Store

The Democratic Presidential hopeful cited Amazon, Google and Facebook when she originally announced the policy. However, speaking to The Verge during SXSW, Senator Warren said that Apple should also be included.

“Apple, you’ve got to break it apart from their App Store,” she said. “It’s got to be one or the other. Either they run the platform or they play in the store. They don’t get to do both at the same time.”

Senator Warren argued that “the problem all the way through this,” is firms being “in competition with others who are developing the products.” For example, she does not want Amazon to sell Amazon Basics through its own retail stores.

“If you run a platform where others come to sell, then you don’t get to sell your own items on the platform because you have two comparative advantages,” she explained. “One, you’ve sucked up information about every buyer and every seller before you’ve made a decision about what you’re going to to sell. And second, you have the capacity — because you run the platform — to prefer your product over anyone else’s product. It gives an enormous comparative advantage to the platform.”

Railroading Big Tech

Senator Warren compared her proposal to policies applied to railroad companies over a century ago. She said that at on point those firms were able to both sell train tickets as well as own the steel companies whose steel was transported, at reduced cost, on the same railroads. “My principle is exactly the same: what was applied to railroad companies more than a hundred years ago, we need to now look at those tech platforms the same way,” she said.

6
Leave a Reply

Please Login to comment
6 Comment threads
0 Thread replies
2 Followers
 
Most reacted comment
Hottest comment thread
6 Comment authors
Paul GoodwinTruhillHagenJohn Kheit Recent comment authors

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
newest oldest most voted
Notify of
Member
JBSlough

Make that same argument for the cable companies first. Then I’ll listen.

Paul Goodwin
Member
Paul Goodwin
Truhill
Member
Truhill

Let’s breakup Legislators. They make the laws, and exempt themselves from those laws.

Hagen
Member
Hagen

I see the point of view here. It fits into the growing push to bring Anti-trust back in alignment with the 1960s, when competition was as important as — maybe more so than — consumer prices. Physical Retail stores like Best Buy or Sears are unlikely to be affected, since they have a wide range of competing products on their shelves. Physical company stores like Apple, or Sephora, or Old Navy should not be affected, because it’s publicly understood they are there to sell that company’s stuff… plus whatever third party things they deem advantageous. Competition in-store is lost, but… Read more »

John Kheit
Member
John Kheit

This is crazy. So besides the Steve Jobs “we make the whole widget” that she wants to destroy, she wants Apple to either a) give up the app store and then is free to make apps, or, b) keep the app store and offer no software. To call this crazy is an insult to the crazy. She vague points to some bizarre conflict of interest in running your own store and selling your own wares along with others. So BestBuy stores that sell their own branded goods with others, Sears selling Kenmore (owned by Sears), Costco selling their (Kirkland) brands… Read more »

Lee Dronick
Member
Lee Dronick

Eye roll