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National & World Issue

Should US government break up #BigTechCompanies including Amazon, Apple, Facebook, and Google into smaller corporations?

"#SavingBigTech for US prosperity and global market" Aug 10, 2024

The ease, reliability, and affordability offered by the big tech have given these companies enormous size and power. Many people accuse these companies of getting undue advantages in the #economic and political sectors. However, this thinking is extremely flawed, not only from the economic perspective of the U.S., but also from the global point of view. Breaking up these companies have more negative consequences than any potential benefit all over the world.

Breaking up these companies will hamper the soft power and geopolitical position of the U.S. Tech companies need a visible size to operate due to the network they affect. In an environment where the U.S. and China are fighting for tech supremacy, the unilateral breakup of these tech companies will open the space for foreign firms. Since companies from other countries are unlikely to be broken up, this will give them an undue advantage over U.S. firms, which will ultimately be harmful to the economic interests of the United States as a whole.

In addition to that, the modernization of other conventional industries requires #technology, a lot of money, and expertise. These big tech companies spend their money and talent in developing new technologies for small and new industries. For instance, Google is investing in driverless car technology after it has dominated the online search and advertising sector. Similarly, Amazon is venturing into the healthcare sector after it has gained a sizeable portion of e-commerce. Breaking up these tech companies will slow the speed of innovation and technological advancement of other industries.

Similarly, breaking up Apple into smaller mini-Apple businesses will demotivate the spirit of capitalism, a key factor of the United States economy. As a matter of fact, Apple has more than 200 suppliers, and breaking up Apple will ultimately destroy the whole supply chain, resulting in an economic nosedive.

Similarly, services offered by many of the global tech companies are extremely cheap. For example, Google search and video streaming platforms are almost free for users all over the world, as are the social media apps of Facebook. Amazon offers low prices on consumer products to its customers. Breaking up any of these will lead to a surge in the prices of these products and services, which will eventually hurt the consumers globally, resulting in further disruption of the global market.

These tech companies are also giving the highest corporate taxes in the world, which is one of the major sources of revenue for the government. Similarly, the employment produced by these companies is also immense. Hence, any step to break the big tech companies will pose a severe threat to both the U.S. life and the world.

Given the integration of all these technologies in our everyday lives and the economic share of the big tech companies, it is an established reality that breaking up these giant companies will turn into a self-inflicted wound.

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