There’s no doubt giant tech companies have a few advantages over many of the rest of us. Unless you’re a multi-billionaire there’s the obvious advantage of the bankroll of these companies. Those giant piles of cash allow companies such as Apple, Google, and Amazon.com to grow and absorb other smaller companies, which in turn often helps them to grow even larger. Does this kind of power stifle growth and innovation? Senator Elizabeth Warren believes so.
Senator Warren spoke specifically about the abilities of these companies to merge with and absorb other smaller companies on Wednesday at an event hosted by the New America Think Tank. While saying that these companies have created technology with great value:
They deserve to be highly profitable and highly successful. But the opportunity to compete must remain open for new entrants and smaller competitors who want their chance to change the world.
She mentioned specifically that mergers have been moving too fast for the applicable oversight and antitrust protections to handle. Senator Warren stated that she believes that the tools in place for antitrust agencies are good, she does also support reforms aimed at putting more responsibility on merging parties to prove that any merger will not harm competition or stifle innovation. The proposed reforms also ask for more reporting and transparency from the antitrust agencies relating to their enforcement activities.
What do you think? Is competition dying because of companies like Apple, Amazon, and Google? Can a startup really compete when they’re reliant on services from these companies? Are the bigger companies at fault when startups set goals of being bought out by said companies? Tell us what you think in the comment section below, or on Google+, Facebook, or Twitter.[button link=”http://blogs.wsj.com/washwire/2016/06/29/elizabeth-warren-says-competition-dying-more-merger-scrutiny-needed/” icon=”fa-external-link” side=”left” target=”blank” color=”285b5e” textcolor=”ffffff”]Source: The Wall Street Journal[/button]
Last Updated on June 30, 2016.