Let's consider for a moment what Sen. Warren's brave new world of broken-up tech giants will look like.
This post originally appeared on the Truth on the Market blog and is republished here with permission.
Utilities? Are you kidding? For an overview of what the future of tech would look like under Warren's"Platform Utility" policy, take a look at your water, electricity, and sewage service. Have you noticed any improvement in those services over the past 10 or 15 years? How about the roads? Amtrak? Platform businesses operating under a similar regulatory regime would also similarly stagnate.
Internet search. Or take search. Calls for"search neutrality" have been bandied about for years. But most proponents of search neutrality fail to recognize that all Google's search results entail bias in favor of its own offerings. As Geoff Manne and Josh Wright noted in 2011 at the height of the search neutrality debate:
Any agency granted a mandate to undertake such algorithmic oversight, and override or reconfigure the product of online services, thereby controls the content consumers may access…. This sort of control is deeply problematic… [because it saddles users] with a pervasive set of speech controls promulgated by the government. The history of such state censorship is one which has demonstrated strong harms to both social welfare and rule of law, and should not be emulated.
Both of Warren's policy"solutions" are misguided and will lead to higher prices and less innovation. Her cause for alarm is built on a multitude of mistaken assumptions, but let's address just a few : Like all entrepreneurs, Diapers.com's founders took a calculated risk that didn't pay off as hoped. Amazon subsequently acquired the company . . And no, this was not a case of predatory pricing. After many years of trying to make the business profitable as a subsidiary, Amazon shut it down in 2017.
But this trend predates the existence of the companies she criticizes, as a recent chart from Quartz shows.
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