US Senator Elizabeth Warren clarifies her plan to dismantle Apple because of the App Store


Friday, US Senator Elizabeth Warren announced a new large-scale plan to dismantle major technology companies, including Apple. In an interview with The edge At SXSW this weekend, Warren explained his plans to dismantle Apple, explaining how the company could not both manage the App Store and sell apps on the App Store.

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Apple, you have to separate it from their App Store. It must be one or the other. Either they run the platform or they play in the store. They can not do both at the same time. So, it's the same notion.

The edge Warren insisted that Apple would distribute apps without running the App Store, especially with the App Store serving as a way for Apple to secure the iPhone's ecosystem. It did not finally solve the security problems.

Warren explained that if you operate a platform where other people sell, you can not also sell on this platform "because you have two competitive advantages". own product on others:

Well, are they competing with others who develop the products? This is the problem that has arisen since the beginning and that is what you must continue to look for.

If you operate a platform where others come to sell, you will not be able to sell your own items on the platform because you have two comparative advantages. First, you have absorbed information about each buyer and seller before making a decision about what you will sell. And second, you have the ability – because you use the platform – to prefer your product to someone else's. This gives a huge comparative advantage to the platform.

Warren compared his plan to dismantle "advanced technologies" at a time when railroads dominated. She explained that the railway companies had discovered that they could not only sell tickets on the railroad, but also buy steel companies and then reduce their price for steel.

This, said Warren, is not "competition" but rather "simply uses market dominance".

At a time when railways were dominant and steel or wheat were needed, the railways realized that they could make money not only by selling tickets, but also by buying steel. then reduce the price of steel transportation for their own business and increase the price of steel transportation for competitors. And that's how the giant grows up.

The problem is that it's not competition. It's only because of market dominance, not because they had a better product, or because they were more user-friendly or better placed.

Warren will probably hear more about his plan to dismantle major technologies as the 2020 presidential campaign continues. Silicon Valley in general should be a hot topic in this campaign, so Warren will probably not be alone in his calls for more oversight and regulation. Read Warren's full interview with The Verge here.

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