NetChoice response: Consumers and Small Businesses would lose from Sen. Warren’s proposal to break-up Amazon, Facebook, and Google
Senator Warren’s new draconian attack on tech threatens to throttle innovation, kneecap user experience, increase prices for goods, and threaten America’s leadership in tech.
It seems that in Sen. Warren’s eyes, all large businesses are bad businesses — but the middle class whom she tries to fight for greatly benefit from the very businesses she wants to rip apart — such as Google and Facebook.
In her Medium post, Sen. Warren proclaims Amazon, Facebook, and Google as “monopolies” while ignoring the incredible competition in every market in which they operate.
Contrary to popular belief, Amazon is only the third largest retailer in the U.S. — far from a monopoly. And consumers can just as easily order goods with a touch of a mobile app from WalMart or quickly search for a lower price from a previously unknown business.
With less than 20 million U.S. users, Facebook’s messaging app WhatsApp is much smaller than alternatives such as Apple’s iMessage connecting over 90 million consumers in the U.S.
Tik Tok, a fairly new competitor in the social media market, has over half a billion users worldwide.
And in search, Google’s competition is a click away.
These American businesses are not “consumer-harming monopolies” but high quality social networking services that have earned global success in a competitive marketplace.
The American success stories — Google, Facebook, and Amazon — empower small businesses to reach new customers all over the world like never before. From online marketplaces to photo sharing services, they allow individuals to connect with the world in ways only dreamt of twenty years ago.
We hope that Sen. Warren remembers consumers can freely reallocate how they spend their time online whenever they want — and many have already done so. Commentary on some of Facebook’s U.S.-based users logging off show that social media is a dynamic and competitive marketplace, not a monopolized and stagnant one.
Before making calls for dismantling America’s innovators, Sen. Warren should provide more than anecdotes and platitudes. To justify her claims, the Senator must show harm to consumers and small businesses — something that doesn’t exist in a world where prices for goods have never been lower, and where the number of new businesses remains strong.
Sen. Warren’s attack on tech may sound good from a podium in Iowa. But is a bad move for our country and for our middle class.
NetChoice is a trade association fighting for free expression and e-commerce on the internet.