1 Burst results for "Harry Ren"
"harry ren" Discussed on News Radio 920 AM
"Talk about the odd couple. You have us Attorney General William Barr and representative David Sicily. He's from Rhode Island Democrat from her down, You know, they couldn't be more opposite. But they are going after big tech on antitrust, and that's you know, the area that this you know, leads me to believe that there might be some concern for big tax. So thie antitrust lawsuit is against Google really around their market share on search, So you know, they think they have silver 90% of search, which just gives them a whole lot of pricing power when it comes to selling ads on Sicilians legislation is again legislation and even he admits that The chances of this passing anytime soon, or even a quarter of it. Eventually passing is pretty low, but it would. It's taking the room, but that's what it's going to take, isn't it T to go after Big Tech Further? You do need different legislation on the books in my view, and insist lanes view. You do need different legislation on the books. Really? The Holy grail of antitrust lawsuits over the last 40 years has been this so called consumer welfare standard, effectively short term consumer price effects are really the on ly focus of whether or not a merger can go through. So I think about the Amazon acquisition of Ring Doorbells, for instance, did not drive up prices. For the average consumer. In the short term, it did not drive up prices. What it did do, though, is put a whole bunch of competitors on on display. And suddenly you put a bunch of companies out of business that had a ton of employees in storing installing home security systems because Sam's on undercut all of those other companies and Basically made it more difficult for entrepreneurs, independent businesses, open markets and just affair economy to exist and so effectively. Look, this is a massive, You know, I think I'd like a 200 page bill that is going to be torn to pieces and thrown out and different iterations passed. But if we can change the that core thesis, which is For antitrust lawsuits to go through today, The only thing that is really looked at is whether or not prices have gone are going to go up for consumers. If we can change that to say, OK, there's just needs to be more stakeholders there than just prices for consumers that I think would be a good move here to say, you know, is this company acting in a way that's going to prohibit An entrepreneur for competing with them in any re away, right? Like you look at The example was given on diapers dot com So Amazon wanted to buy diapers dot com diapers dot com when do it, so Amazon slash their diaper prices so much that they lost $200 million in a month. Amazon dead Diapers dot com, You know, basically just couldn't compete with that so they can eventually end up selling the Amazon is one of these examples where part of legislation that he's interested in introducing would prevent acquisitions of tech and that's going to be hugely controversial. It's going to get really, really difficult for something like this to pass. So that's why I said, I don't think that this legislation that he is proposing is what ends up going through. But if we could get that one piece tweaked here, where Antitrust legislation, rather than just being looked at from the narrow focus of consumer prices is rather looked at from a a perspective of all of the different stakeholders. Whether it be a new start up companies whether it be their their competitors that employ hundreds of thousands of people. I look at Amazon is the low hanging fruit, but there's plenty of others Google's acquisition of ways you know Facebook's acquisition of Instagram It hasn't hurt consumers in terms of cost, but I really think it's hurt you overall society in terms of innovation and employment. I still can't get over that acquisition. Facebook buying Instagram $1 Billion Absolutely is such a steel that was in 2012, but that's it. That's a little hanging fruit in terms of You know, forcing Facebook to spin it off? Sure, as well. But I don't know how low hanging that is, Barry, I don't. I'm not convinced that that's going to happen. Republicans Salah adamantly opposed to that s so unless you have, you know, huge control by Democrats to allow that to go forward. I don't I don't think it's necessarily goingto happen. It's fairly obvious, though, that it should happen. Right. You forget the politics. When you look at it, you say Well, you know, Instagram would be the only one that could compete with Facebook. Twitter certainly isn't competing with Snapchats not competing with but again, that's not the focus of antitrust. The focus of antitrust is Were you the consumer paying more for those services? Because Facebook acquired Instagram, the answer's no. Still free Instagram might have had to charge if they hadn't been acquired by Facebook. Who knows on DH. It's It's free and it's and, Yeah, Facebook is completely anti competitive because of it, But it does bring up a big question, though. You know if you suddenly have In an environment where it's far more difficult for start of tech companies to be acquired by big existing tech companies. They may not attract the VC man. What is that VC money? What does that do to AIPO markets for the statue? Companies that have really driven a lot of excitement? Frankly, since the nineties, it could really shake up. What that all looks like. Because a lot of these companies they get going and they don't even go public before their acquired. Kind of in the offer, and they're allowed to operate at a loss for a decade. Just, you know, to show growth and that's all that really matters until they get acquired. And, you know, start getting their systems We worked if that acquisition can't happen. A lot of big questions about valuations. The tech market is your hay coming up will be joined by Harry Ren from seeking Alfa. We're gonna be talking about a stock so you might want to grab yourself a pencil and paper. Corona virus continues to have a tight grip on Wall.