A series of major tech companies including Facebook, Amazon, Apple and Alphabet have fallen in stock prices during the war for seats in the US Senate.
Fears of tech firms increased after Raphael Warnock and Pastor Jon Ossoff won two Senate seats in Georgia, thereby helping Democrats prevail in the US Senate.
Dan Ives, an analyst at Wedbush, said the dominance of Democrats in the Senate could make big companies like Apple and Facebook difficult.
US President-elect Joe Biden. Photo: Getty Images.
Immediately after the two Democrats announced their victory, shares of n, Facebook, Alphabet and Netflix all fell between 0.4-2.1 percent, while the S&P 500 and Dow Jones industrial averages rose. nearly 1.5%.
“Democrats increasingly criticize the market power of Internet companies,” Ives said some congressmen such as Elizabeth Warren have called for a split, or increased regulation overseeing major tech firms.
Agreeing, analyst Justin Post from Bank of America said that the “green shift” election results could hinder the business of the media giants like Facebook, Google.
Tight scrutiny from the Democratic-dominated parliament could tighten the use of user data by companies. Not only that, in a 450-page document released in October 2020, a Democrat petitioned Congress to limit the non-competitive behavior of Amazon, Apple, Google and Facebook by action, including. the “forcing companies to disband”.
According to Ives, the idea of forcing firms to split up has been launched by US and European government officials. However, there is no strong enough political incentive to promote the plan yet. “Now, things have changed as Wall Street increasingly wants to oversee business models from tech giants like Amazon, Google, Apple and Facebook,” Ives said.
One of the topics that can be brought to parliament for debate is whether Article 230 should be repealed. Adopted into law in 1996, the law effectively gives Alphabet and Facebook a shield against liability for the actions and words of users on their platforms.
President Donald Trump fought hard to repeal Article 230 during his tenure, however parliament actively polled top tech CEOs about whether it would make the company worse. .
Stocks of tech firms continued to rise in 2020, with Facebook, Apple, Amazon and Alphabet among the top 10 stocks of S&P North America. Their shares on the Nasdaq also rose more than 40%.
This growth has attracted attention from lawmakers. “Big tech companies have too much power over our economy, society and democracy,” said MP Elizabeth Warren. Now, scrutiny could reach a climax when the Democrats dominate in the Senate.
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