Senator Elizabeth Warren (D-Mass.) proposed that big tech companies like Google, Amazon, and Facebook should be broken up by the government. Her calls were met with resistance saying this action would signal an overstep by the government, but some say her plan, while extreme, has merit.
“Amazon, Whole Foods, is not the problem. Amazon killing competitors by being able to market against the people who are selling on it is the problem,” Vivek Wadwha, a distinguished fellow at Harvard University, said on FOX Business Friday. “We have to look at it case-by-case and try to understand the technology rather than making blanket statements like she's making, but conceptually she's right on.”
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Not everyone agrees that the only way to protect small businesses is by adding more government to the equation.
"The same arguments were leveled against IBM, that they ruled, and yet along came Wang, along came Dell, along came Amdahl in the mainframe market. You didn't need the government to intervene. More nimble competitors got in there and eventually caused IBM to lose market share across the board,” Gary B. Smith, president of the Kadina Group, said on “Bulls & Bears.”
Still, some argue that government intervention and regulation is necessary as technology has accelerated beyond a point that small businesses are able to compete with big tech companies.