Big government versus big technology: what companies need to know

[ad_1]

Big Government and Big Tech cannot get along. Recently, both sides have been shooting at each other as their war escalates. Click here to find out more.

Big Government and Big Tech cannot get along. In recent days, both sides have been shooting at each other as their war escalates:

On July 2, Spain’s Comision Nacional De Los Mercados Y La Competencia (CNMC) announced that it was investigating Apple and Amazon for alleged collusion against third-party sellers of personal devices. This is one of the many actions taken by European countries against Big Tech companies. On June 30, Amazon filed a motion that sought to recuse Federal Trade Commission (FTC) Chair Lina Khan from antitrust investigations into the company. Amazon says Khan’s past criticism of the company’s power shows that it lacks impartiality in the FTC’s ongoing antitrust investigation of Amazon, including the FTC’s review of Amazon’s acquisition of MGM. The outcome of the Amazons’ motion remains to be seen. On June 29, a U.S. federal judge dismissed antitrust lawsuits against Facebook initiated by the U.S. government and most states. US District Judge James Boasberg said a lawsuit filed against Facebook by the Federal Trade Commission (FTC) was legally insufficient because it did not make enough charges to back up the monopolization claims against the world’s largest social media network. The judge also dismissed the case brought by 46 states because the attorneys general acted too slowly to present their claims. This news was a PR victory for Facebook, even if the story isn’t over – the FTC has 30 days to file another lawsuit. On June 24, Google said the company was delaying the launch of an ambitious initiative to block the tracking of cookies on Google Chrome. This was a win for the UK’s Competition and Markets Authority (CMA), which investigated Google for anti-trust issues. Google has delayed its cookie blocking plan to meet the requirements of the CMA. Who exactly is big tech and what are big tech and big government fighting for?

How you define Big Tech depends on the source you read, but it commonly refers to Alphabet (by extension, Google, which owns Alphabet), Amazon, Apple, Facebook, and Microsoft.

The struggle between Big Tech and Big Government comes down to the power of those who have it. We have seen various lawsuits and legislative proposals indicating that companies like Apple and the ones above have become so large and far-reaching that they harm competitors and intrude on consumer privacy. However, Big Tech refutes this notion and claims that Big Government is exercising its power to stifle Big Tech innovation.

Of course, the conflict has faded and Big Techs are known to argue with each other, especially over issues like privacy. Facebook, for example, is appalled by Apple’s efforts to make it harder for Facebook to track user behavior on the web. And Big Tech companies are reportedly annoyed that Microsoft is flying under the radar screen as its rivals get hit by the weight of government scrutiny.

Why are Big Tech and Big Government fighting now?

The reasons are complicated and depend on the country you live in. In the United States, negative stories about Russia’s abuse of digital platforms like Facebook and Google to influence the outcome of the 2016 presidential election are often cited as a turning point in the galvanization of partisan action against Big Tech. A flurry of bad press over the inappropriate use of Facebook user data over the years has also helped put Big Tech in the unfavorable spotlight. In addition, the spiral of equity valuations of Big Tech companies, especially during the pandemic, has highlighted the enormous financial influence exercised by Big Tech. Lawmakers around the world have unleashed a series of actions aimed at reigning over the power of Big Tech.

Where is the great conflict between government and big technology headed?

No one can say for sure, but legislative action in different countries could:

Disband the big tech companies. Reduce the scope of their power. For example, as mentioned here, various pending pieces of legislation in the United States could make it more difficult for companies to acquire other businesses or enter new businesses. Governments in many other countries are keeping Big Tech busy with legislation.

And this is just the tip of the iceberg.

What should companies do for the great tech war?

Don’t overreact. If you rely on Big Tech platforms to connect with your audience through advertising, organic content, or both, stay on course. The most dramatic potential consequences of the war between big government and big tech say that a breakup of big tech companies would take years to unfold. Don’t overreact by scaling down your presence based on what you read in the news. Follow potential legislation, especially privacy legislation. Understanding how privacy legislation could affect how you use Big Tech platforms will allow you to make informed decisions. If you work with a partner agency to create content, paid or organic, work closely with them to understand how privacy laws affect you. Contact Investis Digital

With privacy laws evolving, we encourage companies to manage privacy carefully. If you need a partner, please contact us. Find out more about our technological solutions here.

For more information:

For more information, here are some of our latest consumer privacy posts:

[ad_2]