What a Breakup of Big Tech Could Mean for Travel
Skift Take
Going down the rabbit hole and considering the effect of a big tech crackdown in travel, Google and global distribution systems have perhaps the most to lose. It's likely, though, that few, if any, of Elizabeth Warren's proposed restrictions will ever become U.S. law.
Calls for the breakup of tech giants like Google, Amazon, and Apple have been renewed as politicians jockey for position in the 2020 U.S. presidential election. With consumers angry about privacy violations and businesses fuming from operating at a disadvantage on digital platforms, the time seems to be ripe for serious change.
Presidential hopeful Elizabeth Warren, the Democratic senator from Massachusetts, called for the breakup of U.S. technology companies during an appearance at South by Southwest last week and detailed the framework of the approach she would take if elected.
What does big tech regulation mean for online travel? Well, the travel industry has been dealing with platform and distribution issues for not just years, but half a century at this point. The language of Warren's followup post, though, could have huge ramifications for the status quo between booking sites and their travel partners should her ideas become law.
The Current Proposal
Warren's proposed regulation would do two things in its current form. First, it would prevent online platforms from selling their own products on their digital marketplaces. No more Amazon Basics diapers undercutting Pampers, for instance, or iMovie for sale on the App Store.
"These companies would be prohibited from owning both the platform utility and any participants on that platform," writes Warren. "Platform utilities would be required to meet a standard of fair, reasonable, and nondiscriminatory dealing with users. P
