The real scandal surrounding Big Tech isn’t just about privacy. It’s about a silent revolution in the global economy, where a small group of massive corporations, like Google, Amazon, Apple, and Facebook, have risen to dominate and control vast amounts of personal data. This concentration of power is reminiscent of the oil industry, yet these tech giants have managed to avoid the same negative stigma that extractive industries like BP or ExxonMobil face in liberal societies.
The True Power of Big Tech
In recent years, these tech companies have become the world’s most valuable firms. They now control what is considered the “New Oil”—our personal data. While privacy concerns, especially following the Cambridge Analytica scandal, have captured attention, the real issue lies deeper. Beyond privacy violations, what we’re witnessing is an unprecedented transfer of wealth from some of the world’s poorest populations to the shareholders of tech giants.
The Impact on the World’s Poor
It’s not just about how Big Tech companies profit from personal data. The most concerning aspect is how these companies are extracting wealth from people in poorer countries. In places like India and Mexico, Amazon is gaining a significant foothold. In Uganda and Bangladesh, taxi drivers are seeing a large portion of their income go to Uber. Similarly, small businesses in the Global South, such as homestays and hotels, are forced to pay steep commissions to platforms like AirBnB.
This trend is also visible in the UK, with the rise of the gig economy. However, the economic disparities are much more glaring in the Global South. These countries are being disproportionately affected by the digital revolution, which benefits tech giants at their expense.
The Expansion of Big Tech’s Global Power
Big Tech isn’t just looking to extend its dominance in poorer countries—they are also pushing for global trade rules that would cement their control. This could severely hinder the cause of global economic justice. As the digital economy expands, these trade rules, such as the “e-commerce” agenda, will shape the global economy.
These trade agreements would prevent developing nations from imposing conditions on tech firms, such as requiring them to set up local offices or share technological expertise. Such restrictions would have negative consequences for emerging economies, much like the success of technology transfer in countries like China. Furthermore, the removal of “local presence requirements” would allow tech companies to operate from tax havens, avoiding taxes and creating minimal jobs in local markets.
The Dangers of Data Localization and E-commerce Rules
One of the most concerning demands from Big Tech is the removal of “data localization requirements,” which would allow companies to store and move data freely across borders. This would make it harder for governments to regulate financial transactions, prevent money laundering, or tackle tax evasion. Countries like India have insisted on data localization for financial data, but these demands are opposed by the tech giants. Such policies would concentrate data storage in the Global North, leaving developing nations without control over their own digital infrastructure.
These issues are already embedded in trade agreements such as the Trans-Pacific Partnership (TPP), which includes countries like Japan, Australia, and Canada. In the UK, Trade Secretary Liam Fox has voiced support for Big Tech’s agenda on trade, potentially leaving the UK vulnerable to deals that could undermine privacy protections and economic sovereignty.
The Risk of a Tech Monopoly
As the UK negotiates its post-Brexit trade future, Big Tech’s influence on trade policy is intensifying. With strong support from allies like Liam Fox, these companies are pushing for rules that would lock developing countries out of the digital revolution and limit their ability to benefit from technological growth. This would not only solidify the monopolistic power of Silicon Valley but also doom billions of people to greater poverty, leaving them excluded from the economic opportunities that digital technology provides.
Those concerned with the future of global economies and equitable development must act to prevent these monopolistic rules from becoming entrenched. The consequences of allowing Big Tech to control the global economy could be disastrous, particularly for developing nations. The time to regulate and challenge this growing digital monopoly is now.
