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Why Netflix could be immune to Elizabeth Warren



Netflix ( NFLX ) may be the only FAANG company – Facebook [ FB ) Apple AAPL ) Amazon ( AMZN ) Netflix (19459004] NFLX]) and Google ( togetL GOOGLE ) – that would not be the subject of Warren's plan to break up Big Tech. Some of the drawbacks of Netflix, such as strong streaming competition, are actually beneficial when it comes to political and possibly regulatory penetration of technologies.

"Netflix has not met with the controversy that has cropped up with other FAANG stocks," said Jim Nail, principal analyst at research firm Forrester. "They do not advertise and use data in a way that some of these other companies do."

Netflix was also unlikely to be accused of having too much monopoly power as the streaming competition increases around the corner with the launch of Apple TV +, Disney + and NBCUniversals Peacock.
US Democratic presidential candidate Senator Elizabeth Warren suggested in a blog post in March to break up Google, Facebook and Amazon. Shortly thereafter, Warren said in an interview with The Verge that Apple should also be broken up. She said that the company should not be able to run the App Store and sell its own apps on it.

In light of Warren's plan to liquidate Big Tech, BMO Capital Markets analyst Daniel Salmon Netflix made his top tech stock on e-commerce giant Amazon.

Advances in this kind of action, but in the short term, we think it would be appropriate to put Netflix on top pick and Amazon on number two, "Salmon wrote in a note to customers.

" We are less "Confident that the issue is a wall of concern to be overcome, it is increasingly clouding Amazon's fundamental thesis," he wrote. "Netflix, on the other hand, is barely exposed to any regulatory risk."

Warren did not respond Friday Asked for a comment.

Warren is not the only one to vouch for a crackdown on technology Critics of large technology companies come from left, right, and center The US government targets technology companies to solve problems ranging from a violation of user privacy to monopolistic behavior.
Washington policy makers are increasing d focused on complaints of anticompetitive behavior with respect to Amazon, Apple, Facebook and Google. The Department of Justice launched a formal antitrust review of the country's largest technology companies in July. Although these companies were not designated by the Ministry of Justice, the agency indicated that they will deal with areas where these companies are dominant players.

The Ministry of Justice declined to comment on Friday. The Federal Trade Commission said it could not specifically comment on Netflix.

However, the dissolution of a large company is a complex process. Even under the most radical vision of some of the progressives voicing concerns in this area, the antitrust laws do not break companies because they're big, said David Balto, antitrust lawyer and former political director at the Federal Trade Commission Competition Office.

"The antitrust laws argue that businesses can be disrupted if they engage in profound anticompetitive behavior and if there are no corrective actions that could really solve the competition problem," Balto said. "This is a universe that is a long way from where we are today, and I see no basis for talking about the liquidation of one of these companies."

At the moment, these concerns are not affecting Netflix, said Jim Nail, an analyst at Forrester.

"To date, Netflix seems to be doing well for the consumer, it's getting a lot of content for a very low price, and many Netflix content probably would not." They were made in the traditional system of film and television studios, giving consumers more choice, and legislators and regulators believe that making more choice is a good thing for consumers, "he said.

" I understand not for some reason would they [Netflix] eventually get into the crosshairs. "


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