Calls To Break Up Tech Giants Ignore History
Calls to break up tech giants like Amazon, Facebook and Google have been increasing. But while the sentiment is understandable, the free market is far more likely to tame these giants without any government intervention.
That, in turn, has generated growing interest in breaking these companies up, or heavily regulating them as monopolies.
This past week, for example, a new coalition called “Freedom From Facebook” launched a petition calling on the Federal Trade Commission to spin off Facebook (FB) subsidiaries Instagram, WhatsApp and Messenger into competing networks.
“Facebook and Mark Zuckerberg have amassed a scary amount of power,” the group says. “It buys up or bankrupts potential competitors to protect its monopoly, killing innovation and choice.”
Amazon (AMZN) is also coming under fire for its sheer size — it is on track to become the first company in history to reach $1 trillion in value.
Bill Simon, the former CEO of Walmart, recently said that Congress should look into breaking up Amazon because it’s “destroying jobs, and it’s destroying value in the (retail) sector,” adding for good measure that “it’s anti-competitive, it’s predatory, and it’s not right.”