The author of a best-selling book that is highly critical of giant U.S. tech companies said Tuesday corporate behemoths like Amazon.com (NASDAQ:AMZN), Berkshire Hathaway (NYSE:BRK.A) and JPMorgan Chase & Co. (NYSE:JPM) have too much power and need to be broken up.
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Scott Galloway, a professor at New York University Stern School of Business and author of the best-selling “The Four,” said these companies distort financial markets and capital flows.
“The reason why they need to be curbed or specifically broken up is that as evidence today, we don’t have fair competition,” he told FOX Business’ Liz Claman on “Countdown to the Closing Bell.”
“The markets are no longer that competitive when one company can perform a Jedi mind trick and just threaten to go into a sector and you see tens of billions of dollars shed from that industry it means effectively the markets are failing.”
Amazon.com Inc., JPMorgan Chase & Co and Berkshire Hathaway announced on Tuesday that they would form a company to lower healthcare costs for their employees in the U.S. The immediate upshot was a plunge in the share prices of several healthcare companies.
“Key to competitive markets is no one player or company has too much power and Amazon has proven it just has too much power it can choke the mother’s milk of any business off and that is access to capital,” he told.
Galloway doesn’t believe that Washington will play a role in breaking up Amazon, but explains how Europe might have the best chance at slowing down the tech giant.
“It’s probably going to come out of Brussels, though, because Europe registers all of the downside of big tech, the tax avoidance, the job destruction, the weaponization of elections, but they only garner a fraction of the upside. There are very few hospitals or university buildings named after Facebook or Google billionaires in Europe. All of the downside, fraction of the up side stiffens the backboard of regulations,” he said.