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Source: This post is created based on the article ‘Taming Big Tech’ published in Business Standard on 30th Sep, 2023.
Syllabus Topic: GS Paper 2 – Liberalization of Industrial Policies
News: Big Tech companies, often referred to as MAMAA (Meta, Amazon, Microsoft, Alphabet, and Apple), are facing increased scrutiny and legal challenges.
Recently, significant cases began in the US against Alphabet (Google) and Amazon.
Europe has already imposed massive fines on these tech giants and introduced new laws to increase competition and protect consumer rights.
In India, Google has been fined in two cases, with another still under review.
What are the concerns against these tech giants?
In the past, the internet was seen as a free space for businesses to grow. But now, concerns have risen about how these companies use personal data, show paid content, and avoid taxes.
The financial power of these companies is also huge. Their profitability rates double the S&P 500 average. Therefore, they can easily remove competition.
They are criticized for practices like pre-installing software, limiting interoperability, and acquiring potential competitors.
These companies have become so powerful that they challenge governments.
Some of their actions, like buying competitors or controlling too much of a market, are being questioned. For example, Australia made a law to help news publishers get fair treatment.
What is the way forward for big techs?
These companies are defending themselves and making some changes. For example, Meta has stopped certain ads for teenagers, and Google is sharing more data.
However, it is not sufficient. They might have to make even bigger changes in the future.
