The highly regarded professor Columbia Law, who uses the term & # 39; net neutrality & # 39; has come up with, has urged the government to dissolve Facebook, Google and Amazon before they take over the entire economy.
Tim Wu says that the tech giants have to contend with little competition and acquire more and more companies.
He says that the only way to keep them under control is to prosecute them for violating antitrust laws in an effort to create fair competition. Antitrust laws regulate the behavior of business enterprises to keep them honest and fair and to put an end to monopolies.
Technological giants such as Facebook, Amazon and Google affect privacy from almost every area of our daily lives, and only become more powerful as they buy more assets and competitors are forced.
Wu says that Facebook should go first because the social network has become huge and is shrouded in privacy scandals.
Columbia Law professor Tim Wu says it's time to dissolve Facebook, Amazon and Google before they control the full economy and this can only be done with a lawsuit that invokes antitrust laws. Wu pictured left, founder of Facebok, Mark Zuckerberg, pictured right
Facebook faces no serious competition, fields with a huge amount of private data, deals with advertisers in an undisciplined way, has distorted politics and has become a place where extremists come together, says Wu.
The Federal Justice Commission or the State Department could assert that Facebook's acquisitions of WhatsApp in 2014 and Instagram in 2012 were illegal and were anti-competitive mergers.
He reveals in his book The Curse of Bigness that next week is that the only way to control the growth and expansion of Facebook, Amazon and Google is an antitrust procedure
The lawsuit should ask the court to break the social network or to dissolve it, he says in his book The Curse of Bigness, which is out next week.
Wu wants the US to invoke its antitrust laws with the Zuckerberg network. Antitrust laws have been used in the past by IBM, AT & T and Microsoft.
& # 39; Facebook is the most worrying. I would break Facebook – the social damage is clear, and the benefits of Facebook as a whole remain are not really clear, "he told Vox.
& # 39; They are too big to fail, it is too big to be tolerated, & # 39; he added.
He said that legislators and regulators made a mistake when they let Facebook buy on Instagram – but with the boom in Silicon Valley and the fact that social networks do not charge fees for their products, they had no idea what the purchase really meant.
& # 39; I was in government [at the time]I share part of the debt. I think that at the time there was a kind of respectful attitude towards Silicon Valley, you know, they were the golden goose. They had reinvented the economy, reinvented business as we knew it, "Wu said.
& # 39; When Facebook bought Instagram, nobody really said: & # 39; Oh, they just buy their biggest competitor – and it's illegal to buy your most dangerous competitors. People said, "Oh, they do not charge money, we do not really understand how this works," he added.
What is an antitrust law?
- Antitrust laws are a set of federal and state regulations designed to ensure that companies operate honestly and fairly
- They try to level the playing field and prevent companies from having too much power
- Some anti-trust cases include IBM, Microsoft and AT & T
- In the mid-sixties, IBM was charged with violating antitrust laws and monopolizing the computer market
- The lawsuit was dragged for 13 years and did not come to judgment, but due to the pressure on the company, competition as Apple and Microsoft could rise
- In 2001, Microsoft was accused of owning a monopoly on Intel-based computers. They were instructed to break into two units, one for the operating system and the other for software
- In 1974 AT & T was called to monopolize the telecommunication market. Seven years later, the order was to be divided into seven different companies responsible for different regions of the country
When Facebook bought WhatsApp for as much as $ 19 billion, it became clear that the social network was selling out advertising competition. Wu says that WhatsApp and Facebook are chasing the same advertisers and that the monopoly profit would eventually benefit the Zuckerberg company.
He said that regulators and the public should be wary of Amazon and Google.
& # 39; There's also a little chatter about Amazon coming into the ad game and getting a slice of that pie, and Google is also dependent on Amazon Web Services for many things. To me it seems like they are going to eat everyone. Like, they should be the scariest, "he said.
When it comes to Amazon and Google, it's a matter of: & # 39; What will not they do? What will they not try to address? & # 39; … Do you really want an economy where you have a handful of companies? , maybe even two companies, do everything? & # 39; he added.
He said that General Motors is an example of a gigantic company that once led everything until it lost the competition from Japan.
Wu says that the disintegration of the popular company could also improve privacy in the case of Facebook. He says that two of Facebook's founders recently mended the technological gigantic concern about Facebook's privacy practices.
The way to break these giants is with an antitrust case led by the Department of Justice, the Federal Trade Commission or a state. Wu warns that Facebook must be dealt with first than the Amazon company from Jeff Bezos. Bezos pictured above
Wu said: & # 39; When it comes to Amazon and Google, it is a matter of: & # 39; What will not they do? What will they not try to address? & # 39; … Do you really want an economy run by two companies? & # 39;
He warns that the nation should pay attention to the lessons learned from the past if the US is its second & gilded age & # 39; goes through and adds & # 39;it's time to master the economic structure before it checks us & # 39 ;.
& # 39; I'm afraid we'll end up with it eventually [just] Google and Amazon, if we let them stay for forty years; if we do not stir the pot the way we have agitated it with IBM, I think we will pay for it, "he said.
IBM's antitrust case stretches for 13 years under the Reagan administration and ultimately received no judgment, but it depressed the company that had the dominant market share in the mid-1960s.
Wu says that without that IBM lawsuit, competition like Apple and Microsoft could not have risen.
And it is not just tech giants that have to be broken up. Wu also says that the pharmaceutical industry, cable television, beer and the fertilizer industry must be broken open.