New York Congresswoman Alexandria Ocasio-Cortez (Democrat) said on June 28 that Congress should consider breaking up companies like Apple that have grown too large and create protections for consumers. This follows previous reports that Apple may soon raise prices for iPhones and laptops due to tight processor chip supply chain. Apple CEO Tim Cook recently said in an interview that price increases are inevitable.
AOC Calls for Breaking Up Big Tech Like Apple
AOC said: "We need to break up a lot of companies that are too large. We need to create protections for consumers." She further explained: "The problem we face is that these big companies think they are the government. They want to be the government. They want to have completely unchecked power."
AOC's comments came amid warnings of Apple price hikes, reflecting the real impact of the AI race — companies are feeling the pressure of global demand for processing power, while local communities are struggling to deal with the cost of using AI. Her stance represents the distrust of progressive lawmakers toward corporate influence, advocating for more government-led responses.
Cook Says 'Price Increases Are Inevitable' in WSJ Interview
Cook said in a recent interview with The Wall Street Journal: "Unfortunately, price increases are inevitable. We are doing our best to mitigate the huge cost increases that are being passed on to us, and we have been working hard to protect our customers, but this situation has become unsustainable."
The root of the cost pressure is that the rise of AI companies has significantly increased demand for processors. Apple is now competing with rivals for an increasingly limited supply of processors, driving up the company's manufacturing costs.
AOC: CHIPS Act Passed Before AI Explosion, Did Not Foresee Data Center Energy Consumption
AOC said Congress should consider additional measures beyond the CHIPS Act: "The CHIPS Act was passed before AI made such huge advances, so it was actually passed before data centers emerged. So it did not anticipate that these centers would consume such enormous resources. We are subsidizing the construction of many AI data centers."
The CHIPS Act, signed by President Biden in 2022, includes $39 billion in incentives for domestic semiconductor manufacturing, $11.2 billion in grants for national energy grid modernization and clean energy innovation programs. But the Act does not address the energy consumption pressure caused by data centers.
FAQs
Why does AOC call for breaking up large tech companies like Apple?
AOC believes that large tech companies are too big and lack checks, saying these companies "want to be the government, want to have completely unchecked power." She argues Congress should consider breaking them up and create protections for consumers.
What is Apple CEO Tim Cook's stance on price increases?
Cook said in a recent interview with The Wall Street Journal that "price increases are inevitable," explaining that the company has done its best to absorb cost increases but it has become unsustainable. The cost pressure stems from AI companies competing with Apple for limited processor supply.
What limitations does AOC see in the CHIPS Act?
AOC said the CHIPS Act was passed before the explosive development of AI and failed to foresee the massive energy consumption of AI data centers. She believes Congress needs to consider additional measures beyond the CHIPS Act, especially to address data center energy consumption.
