Turn – Big Tech key to innovation – aff collapses it

From the money put into eliminating COVID-19, to investment in artificial intelligence (AI), big companies are rightfully taking credit. To support AI and machine learning startups, Google launched two funds, the Google Assistant Investment Program and Gradient Ventures. Amazon has pursued a similar strategy, spending over $20 billion to invest and acquire around 128 AI startups globally. These investments have led to astounding progress in wearables, autonomous vehicles, robots, and more. If we broke these companies up, it would also mean having to sacrifice the technological advancement and innovation that comes from them.b2. IMPRACTICAL MARKET FRAGMENTATION Although it may seem attractive to break up big companies, experts have argued about the practicality of such an endeavour. If the government broke up a social media giant into smaller social networks, for example, it could produce an illusion of choice. Despite this, the approach would be less desirable to users aiming to control all of their communications from one place. This could push many of them to select one social network, and undo the reason for the break-up. 3. HIGHER SERVICE COSTS It was believed that healthier competition between smaller companies would lead to a dip in prices, but experts are now signalling that this could be a myth. Given our dependence on them, big tech’s virtually free services and tools are hard to replace. However, splitting up big tech could still instil a fair market by encouraging smaller businesses to develop a new and competitive range of services and products. Despite this, startups aren’t able to benefit from a free business model, meaning there’s a good chance that end-users will pay heavily for every digital service they sign up for. This might even include digital navigation maps, daily emails, analytical tools for organisations, and more. A Final Word While free services are economical, the approach slowly but steadily kills innovation. “The ideal solution is really somewhere in between, continuing to have companies create value, but taking into consideration the European approach of fair allocation,” says Van Alstyne, Questrom professor and coauthor of “Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You". By ensuring interoperability and data portability across rival products and services, it is indeed possible to restore balance in trade.