Technology

Tech giants under scrutiny

Some of the world’s biggest technology companies are facing off with regulators in what’s being called a “tech lash”.
As society struggles to catch up with the pace of technological change, governments around the world are waking up to the fact that our internet economy and how it operates is unaccountable and undertaxed.
The European Union is reviewing Google for allegedly abusing its dominant market position in search. Germany is already investigating how Facebook profits from user data.
The US is looking at whether Apple broke laws with software updates which slowed older iPhones. And Congress is holding more hearings on the use of social media platforms to allegedly disrupt US elections.
Even so, with the increased scrutiny over disinformation, fake news and malicious actors buying ads, the internet companies could still find themselves hit by regulation sparked by the big tech backlash.
Consumers, too, are asking if things like smartphones, designed to keep us online for longer are just making companies richer at the expense of children’s mental health.
“Since the Russia meddling and fake news, you’re seeing a lot more heat on Facebook, Twitter and Alphabet – not just on Capitol Hill, but the EU and abroad,” says Daniel Ives, chief investment officer at GBH Insights.
Facebook has recently changed its news feed algorithm to reflect communication from friends and family, as opposed to news outlets, and Ives believes “they’re definitely in the crosshairs of legislatures. And I think you’re seeing Twitter, Alpha, and Youtube be a lot more strict and a lot more focused on some of the content that’s coming through as we’re seeing the double-edged sword of social media.”
European regulators aren’t shy against tech giants, explains Ives. “There’s a boxing match between Silicon Valley and the EU that’s getting more intense. Part of the focus has been on Apple and Microsoft, but now you’re seeing stricter potential for regulatory oversight. I think part of it is, these companies need to play nice in the sandbox. They need to have an olive branch to the EU. You’ve seen that with Facebook and their change to the tax code and what they’ve done in Ireland.”
According to Ives, “these companies, at this point, basically own the consumer kingdom…I don’t think their core business model will change, but … transparency and a lot more oversight around content” could be one example in extending the olive branch.
“Facebook said they’re going to stop crypto advertising and bitcoin advertising, so they said if this could be an issue [for the EU] then they’re going to take it off.”

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