Key facts
- Rep. Alexandria Ocasio-Cortez called for breaking up large technology companies.
- She cited recent price increases on Apple products as evidence of anticompetitive practices.
- Ocasio-Cortez argued that these companies act like governments with unchecked power.
- She also criticized AI companies for discussing potential job losses with investors.
- Apple stated price hikes were due to increased demand for memory and storage for AI data centers.
Representative Alexandria Ocasio-Cortez has renewed calls to break up major technology companies, arguing that their unchecked dominance and recent price hikes on electronics harm consumers and stifle innovation. In an interview with Fox News, the New York Democrat stated that these large firms behave like governments with excessive power and that antitrust measures are necessary.
Ocasio-Cortez specifically pointed to recent price increases on Apple products, such as Macbooks and iPads, with some rising as much as $500. She suggested that the demand for memory and storage for AI data centers, as explained by Apple CEO Tim Cook, is contributing to these hikes and that consumers are effectively subsidizing this development. Apple stated the price increases were unavoidable due to the surge in demand for AI data centers.
The congresswoman also expressed concern about the emerging artificial intelligence sector, criticizing companies for discussing potential job displacement in private investor calls. She believes that market consolidation prevents necessary innovation and allows dominant companies to acquire smaller, innovative startups, a practice known as 'killer acquisitions.' Proponents of stricter regulation, like Ocasio-Cortez, advocate for structural separation to restore market competition and protect consumer interests.