Amazon, Facebook & Google given break-up warning in sweeping big tech proposal

Under the proposals any firm with annual revenues of $25bn or more that offers an online marketplace or third-party exchange would be designated as a ‘platform utility’, resulting in mandatory separation between the platform and its participants, with no one company allowed to operate both.

In this way, Google’s ad exchange could be hived off from businesses on the exchange, including Google search. Tech big beasts would also be barred from any discrimination in dealing with their users, broadening net neutrality standards currently enforced on internet service providers.

Any company designated as a platform utility would also be prohibited from transferring or sharing data with third-parties.

Warren wrote: “America has a long tradition of breaking up companies when they have become too big and dominant — even if they are generally providing good service at a reasonable price.”

In this way, Warren seeks to level the playing field for small businesses by giving them a “…fair shot to sell their products on Amazon without the fear of Amazon pushing them out of business. Google couldn’t smother competitors from demoting their products on Google Search. Facebook would face real pressure from Instagram and WhatsApp to improve the user experience and protect our privacy.”

In addition to future measures Warren also took aim at examples of uncompetitive mergers from the recent past, suggesting that she would appoint regulators to undo Amazon’s takeover of Whole Foods, Facebook’s acquisition of WhatsApp and Instagram and Google’s takeover of Waze, Nest and DoubleClick.