The logic of argument has forced Parliament’s Commerce Select Committee to recommend a Bill for the forced breakup of David Farrar's Kiwiblog. "This is due," said the report, "to its monopoly position in the blogosphere."
The Committee was almost unanimous in endorsing, and improving the breakup. MPs from Labour, National, NZ First, Maori, United Future and the Green Party all agreed on the report, and are expected to vote 119-2 in favour of the bill.
"This is a no-brain," said one.
Said Labour's David Cunliffe in announcing the breakup, "There are many precedents for this type of regulatory action when a company with market power is required to provide competitors with access to its network or faces controls over the prices it can charge."
Effecting an early dismembering of the Kiwiblog empire, David Farrar was nonetheless ebullient. "This is quite right to my mind. A vertically integrated monopoly is that rare beast which should be regulated if competition is stymied. And the problem is that for over four years Kiwiblog has stymied effective competition. I got too cute at blocking effective competition, so the power of regulation became the only option. Kudos to the Minister (David Cunliffe) and the Select Committee Chair (Shane Jones) for getting the Bill to this point, and also to all the members of the select committee. These fine gentlemen (and woman) clearly have their eye on the bigger picture in a way I cannot."
At the time of writing, Kiwiblog Blogshares had gone through the floor. More details of this shock move at G-Man Inc.
David Farrar is 67.
LINK: Government to separate Kiwiblog - G-Man Inc.
Operational separation for Telecom - Kiwiblog (David Farrar)
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