Breaking up Big Tech will hurt competitiveness

As Congress continues to question America’s top technology companies, it must preserve the policies that have allowed the United States to lead the world in digital innovation. In China, a crackdown on technology giants to consolidate control over the economy has had predictable results — diminished investment, research, and development.

American consumers and local communities cannot afford to go down that path.

Unfortunately, talk of breaking up technology platforms and radically rewriting antitrust law dominates Washington. Lawmakers have introduced bills that would dismantle the digital economy — ultimately undermining the consumers, small businesses, and educational institutions that rely on these services.

One such proposal would prohibit technology companies of a certain size from acquiring startups, a practice that attracts substantial capital investments, elevates entrepreneurs, and more quickly brings innovative products and services to market. Another

would force companies to spin off convenient products and services into separate businesses. Imagine Google without Google Maps. Facebook without Messenger. No Amazon Basics. An iphone with no App Store.

For decades, antitrust jurisprudence has focused on consumer welfare. This standard ensures that judges and government agencies focus on how business conduct affects consumers, rather than favored political groups or individual competitors. On the other hand, the populist antitrust movement, which has permeated regulatory bodies and the halls of Congress, takes “big is bad” as gospel, with little regard for consumer wellbeing.

The American Edge Project surveyed voters in frontline congressional districts, including New York’s 19th, and unsurprisingly found citizens want Congress to focus on national security, jobs, and health care — not splintering the tech sector.

No wonder: Over the past year, we’ve all increased our reliance on digital services. They allow small businesses to reach customers and engage employees and suppliers. They allow students to access classes and employees to do their jobs, all amid a global pandemic. But if the populist antitrust advocates have their way, these crucial services will be wrapped in unintended consequences. As the recovery moves forward, we cannot afford to watch technology costs increase for small businesses and watch America lose its edge as the world’s leader in technology and innovation. It is time for a more thoughtful approach.