Elections Liz Warren proposes breaking up tech monopolies

[EradiatedHaggis]

I think this is an issue that can garner a lot of bi-partisan support. Is anyone against this, and if so could you explain why?

Cant happen if the 1996 telecommunications act is in place. They would need to be title II "common carrier" and that means making major changes to more than a few laws.

But all that would do is make a company like Amazon move outside our borders and take their money with them. ISPs cant do that though...and Facebook? ha. Good luck. Facebook can have their headquarters anywhere in the world and then what are they going to do? Block access to Facebook?

This is mostly a hallow idea without major reworking.

 

[Jorge Luis Borges]

Cant happen if the 1996 telecommunications act is in place. They would need to be title II "common carrier" and that means making major changes to more than a few laws.

But all that would do is make a company like Amazon move outside our borders and take their money with them. ISPs cant do that though...and Facebook? ha. Good luck. Facebook can have their headquarters anywhere in the world and then what are they going to do? Block access to Facebook?

This is mostly a hallow idea without major reworking.

Facebook could easily leave, no doubt, but Amazon? I'm not so sure about that.

 

[EradiatedHaggis]

Facebook could easily leave, no doubt, but Amazon? I'm not so sure about that.

Slightly different. Amazon can move their headquarters and all office related jobs outside, along with their bank accounts and implement a surcharge on American orders to cover any cost the American government tries to apply to them...and I am sure just about any country would love for Amazon to bring their many billions into their countries currency as well as welcome their higher paying office jobs pertaining to their headquarters.

Businesses always pass the new taxes down to the consumers so the only thing that will be done, is make shopping at Amazon more expensive.

Point is, the government will not be able to force Amazon to break up and if they have to, they can easily move most everything offshore and have all orders to Americans go through other carriers and just tell American customers, if you want your fast next day shipping back, vote those dumb cunts out of office and get the laws changed back.

 

[Gunny]

At first blush this is a very compelling stance.

 

[Rod1]

Just tax them properly, also make it criminal to traffic with your personal information.

Amazon wouldnt be an issue if the US taxed consumption nationwide like a proper 1st world nation.

 

[Possum Jenkins]

You might be right about senators, though I doubt it will be as strongly opposed as you say. But lol at 80% of GOP voters going along with that. If you are right about the Republican Senate, then the progs should take heart, because this is an issue the GOP base feels strongly about.

It might be an issue they feel strongly about but it doesn't translate into votes.

If it it did, Democrats would have control of all 3 branches for the past 30 years straight. Of the two parties, they're unquestionably the ones for regulating banks, financial institutions, and big business in general, while the GOP is unquestionably hell bent on concentrating wealth and easing restrictions. Yet they keep winning...

 

[tinker_190]

I have stock in apple, Amazon, and Google. So I wonder how this would impact stocks? That would be a reason to be against it, if it will negatively impact stockholders, which will impact 401ks for a lot of people as well.


Edit: I only just saw this headline earlier today and haven't been able to read much into it, but that is key initial concern

Don't hold me to this, because I am going off of memory, but when a spinoff occurs, you get proportionate new shares of the new company when it's listed.

So if you have 1 share of TECH (made up ticker but you get it), trading at $100. Somehow, TECH has two subdivisions, ATC and BTC (not bitcoin, but A Tech Company and B Tech Company) that are going to be split. They both have a sub valuation of, say, 60/40.

After TECH is broken in two, you have a share of ATC at $60 and a share of BTC at $40.

Valuations could decrease though because a lot of equity traders put a valuation on synergies that could be lost.


EDIT: And I am all for these tech companies being broken up and I'm about as free-market as it gets. The lobbying power Alphabet has is insane. The political power Twitter has is insane.

 

[Jorge Luis Borges]

It might be an issue they feel strongly about but it doesn't translate into votes.

If it it did, Democrats would have control of all 3 branches for the past 30 years straight. Of the two parties, they're unquestionably the ones for regulating banks, financial institutions, and big business in general, while the GOP is unquestionably hell bent on concentrating wealth and easing restrictions. Yet they keep winning...

You don't see how this issue is different to GOP voters?

 

[milliniar]

AT&T just got approved to merge with Time Warner.

Ya At&t is actually bigger now then when "ma bell" was broken up. Though it is a much different company now and has some other competition.

 

[xcvbn]

Interesting and fairly practical discussion about antitrust in the 21st century

 

[Seano]

I was wondering which candidates would take the smart approach and try to seem more moderate. It could be a winning strategy in the presidential election but probably not one that would win the democratic primary.

 

[method115]

Warren is both pragmatic and realistic when it comes to policy. I’m not sure you can say the same for others running. She is the best progressive in the race.

I did enjoy what she said about the Syrian was and us being in the ME in general.

 

[ineverpost]

This is pure campaign bullshit. No side of the aisle would ever attack the tech industry.

 

[Deleted member 457759]

You mean Pocahontas.

 

[cottagecheesefan]

Don't hold me to this, because I am going off of memory, but when a spinoff occurs, you get proportionate new shares of the new company when it's listed.

So if you have 1 share of TECH (made up ticker but you get it), trading at $100. Somehow, TECH has two subdivisions, ATC and BTC (not bitcoin, but A Tech Company and B Tech Company) that are going to be split. They both have a sub valuation of, say, 60/40.

After TECH is broken in two, you have a share of ATC at $60 and a share of BTC at $40.

Valuations could decrease though because a lot of equity traders put a valuation on synergies that could be lost.


EDIT: And I am all for these tech companies being broken up and I'm about as free-market as it gets. The lobbying power Alphabet has is insane. The political power Twitter has is insane.

I assumed it would be something like that. Unpredictable tho I would think in the aftermath, because some of those companies would be lost in the flood of other companies and devalue. While some might do better, it would be hard to predict.

When I have more time, I might do some research and look at past companies that have been broken up, and the outcomes of their next spin offs.

Outside of the stock aspect, I am all for these companies being broken up. They have so much power, along with the cable companies. It is pretty crazy how much people spend accessing pretty much the same 3-4 companies almost their entire time they are awake, in some way, if only just background apps, etc.

 

[Anung Un Rama]

Interesting. Can you give an example?

CVS, one of the largest retail pharmacy chains in the country has recently bought Aetna, one of the few insurance giants left.
Now CVS can control what pharmacies its insurance will contract with. Walgreens and WalMart are working on similar schemes.
So not only are they borderline monopolies (insurance co and retail pharmacy giants), but now they are gaining control of insurance.
Its its bad for competition, consumers, and workers.

 

[PainIsLIfe]

https://www.nytimes.com/2019/03/08/us/politics/elizabeth-warren-amazon.html

Key quote: "Ms. Warren’s plan would also force the rollback of some acquisitions by technological giants, the campaign said, including Facebook’s deals for WhatsApp and Instagram, Amazon’s addition of Whole Foods, and Google’s purchase of Waze. Companies would be barred from transferring or sharing users’ data with third parties. Dual entities, such as Amazon Marketplace and AmazonBasics, would be split apart."

Seems like Sanders and a few other Dems have also called for more regulation of Facebook et al, but Warren's plan is more concrete at this point. Booker, meanwhile, is pretty cozy with Silicon Valley https://bits.blogs.nytimes.com/2013...licon-valley-friendships-started-at-stanford/. If she makes this a big campaign promise, she'll be competitive for my vote, and I haven't voted Dem (for president) since the 90s. Breaking the companies down to size is good, but I also like the idea of barring the transfer or sale of user data to third parties.

I think this is an issue that can garner a lot of bi-partisan support. Is anyone against this, and if so could you explain why?

As someone that remembers bell being split I'm against it. I do agree with not selling data to 3rd parties.

 

[MikeMcMann]

I don't like as I do not trust Govt to be able to determine how to execute this without risking destroying the competitiveness of them. Once upon a time no one would think GM, Ford and Chrysler were at true risk from the competition.

If these companies are made un-competitive, by design or accident they risk being over taken in a very fast moving market place. People want access and no cost. You force FB to charge instead of mining data then a Chinese competitor who mines data and does not charge may take all the citizens.

What i think is needed is perhaps a series of new corporate taxes in this segment that would be used to create a new Privacy Watchdog unit. Rules for ALL regardless of where the company was domiciled, if they want access to US citizens.

 

[Jorge Luis Borges]

As someone that remembers bell being split I'm against it. I do agree with not selling data to 3rd parties.

What bothered you about Bell being split. I seem to remember it being a time of a lot of innovation and improvements for consumers in terms of telephones.

 

[Higus]

wow, 2 pages and no Pocahontas jokes. Good job, WR!
EDIT: nvm, @Tropodan with the combo breaker