Plan to Break Up Tech Companies “Bad News for Consumers, Innovation”
According to reports, Senator Elizabeth Warren (D-MA) is set to announce a new plan to use antitrust regulations to “break up” large and innovative technology companies. The New York Times report specifically names Amazon, Facebook and Google as targets of the Warren plan.
Associate Director of CEI’s Center for Technology and Innovation Jessica Melugin said:
“Politicians and their technocrats hacking up big tech companies is bad news for consumers, innovation, stockholders, and private property rights.
“There’s no need to run this doomed regulatory experiment in the U.S.; European-style meddling has left that continent without one tech company in the global top ten and, more generally, government control of industry is currently on full and tragic display in Venezuela.
“The next wave of technological innovations will likely require enormous economies of scale to serve consumers. In the meantime, there are no barriers to entry for the next killer app or sector-disrupting entrepreneur.
“The free market is working to lower prices, create new products, and leave consumers better off; politicians need to stay out of its way.”
For more from CEI experts on antitrust policy, please visit cei.org/antitrust.