Gurley coined the phrase regulation is the friend of the incumbent to describe how incumbents use regulation to prevent competition.
“I have I have a phrase I use, regulation is the friend of the incumbent.”
Gurley says regulation is the friend of the incumbent, used to raise prices and prevent competition.
“I have a phrase I use, regulation is the friend of the incumbent. So they use it to actually raise prices, prevent competition, and further in ensconce themselves in the leadership role they're already in.”
Gurley argues regulation most often protects incumbents despite public perception to the contrary.
“regulation, I'd say most often ends up protecting the incumbent and the world thinks the opposite is true.”
Gurley argues AI wave is unprecedented because incumbents like Microsoft moved fast from the start, unlike typical disruption patterns.
“This is one of the very first waves where the incumbents were eyes wide open at the beginning of the technology shift.”
Gurley argues Silicon Valley must actively engage in Washington to fight incumbent regulatory capture.
“I think, that engagement by Silicon Valley to fight back against the incumbents who are trying to do the capture. Right?”
Gurley states regulation favors incumbents and government should not pick AI winners now.
“Regulation is the friend of the incumbent. It's not time for the government to start picking winners.”
Gurley quotes Nobel laureate Stigler that regulation is acquired by industry for its own benefit.
“As a rule, regulation is acquired by the industry and is designed and operated primarily for its benefit.”
Gurley argues regulation typically locks in incumbents who write rules blocking new entrants.
“regulation's the friend of the incumbent. Most of the time when Washington DC leans into a new to to a new industry, you lock in the incumbents, and and the rules are written by the incumbents and make it very hard for new entrants to come up behind them.”
Gurley argues regulation is the friend of the incumbent, locking in dominant players when Washington intervenes.
“Most of the time when Washington DC leans into a new to to a new industry, you lock in the incumbents,”
Gurley argues regulation locks in incumbents and makes entry harder, so more regulation favors existing stocks.
“So I would say the more regulation actually, the more you wanna own the stock.”
Gurley identifies taxi commissioners and taxi fleets as drivers of all Uber legal issues.
“The predominant driver of most 100% of the legal issues is either a taxi commissioner or a taxi fleet.”