Presidential hopeful Elizabeth Warren has a plan to break up big tech companies. The proposal entails appointing a bunch of regulators to undo mergers that her administration would deem anti-competitive.
Warren's plan wouldn't only strip the incentive for big companies to invest in growth and innovation; it would inhibit small-business innovation, as well. It's true that Big Tech frequently swallows enterprises to eliminate competition. Yet many times smaller tech firms don't have access to capital that allows them to bring big ideas to fruition, or they simply can't take the risk. Big corporations can do both.
The fact that Facebook, Google and Amazon didn't even exist 25 years ago tells us the exact opposite. It highlights how quickly innovative ideas can transform the marketplace in an era of relative deregulation. I'd tell you to ask the executives at Woolworth's or Blockbuster -- and soon AOL, MySpace and Sears -- but there aren't any.
Apple or Amazon were early adapters of the market's new realities. Now, some of their businesses are forced to compete with other giants like Walmart or Samsung. This has been beneficial for consumers. Now, if Twitter and Facebook want to stay on top, they probably should stop antagonizing half of their marketplace. Then again, in 25 years, it's quite likely that a bunch of new platforms will overtake both, no matter what they do.
Wish that she comes up with a plan to build roads, bridges, other than break things down or tax the citizens.
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