Years ago, the biggest monopoly that the United States had to contend with was Ma Bell. The telephone company was the only one around, so people had no choice but to use them if they wanted telephone service.
Shervin Pishevar, the co-founder of Sherpa Capital, identifies that there’s a few new Ma Bells in town. This includes Amazon, Alphabet, Facebook, Microsoft, and Apple. In his tweet storm, he refers to them as robber barons that are out to destroy all of the different startups.
Shervin Pishevar warns that these monopolies have been allowed to thrive for so long that there are many people crying out for Amazon in their area. However, it’s not healthy for entrepreneurship. Every time a startup has a chance to compete, their bought up or destroyed by the monopolies.
As Shervin Pishevar points out, breaking up Ma Bell ended up being what was best for the American people. The same should be said about all of the new monopolies. Breaking them up could provide more choices and, ultimately, be better for the economy.
It’s going to be hard to break up the monopolies. They’ve been allowed to grow in power for so long that people have grown dependent on them. Shervin Pishevar dedicated a significant amount of tweets to warning about this power. As a result, a lot of people are talking about these modern-day monopolies and what should be done about them.