“This reflects a deeper understanding of Big Tech’s business models, where user preferences, exchanges, and interactions are monitored, leveraged, and ultimately nurtured and nurtured across business units through behavioral algorithmic methods.
“Looking ahead, regulators are showing no signs of slowing down. And why should they? The pandemic has overloaded the world’s digitization movement. Data, not oil, has become the lifeblood of the modern economy. Google, Facebook and Amazon now account for around 70% of global online advertising. There are legitimate concerns that big tech will stifle innovation and continue to swallow younger competitors. “
More regulation, of course, means lower profits – and this is not just an American issue. This supertrend is global. Take China, for example, where regulators have big plans to create a “new normal” for their tech giants, including trying to define anti-competitive behavior in the sector by targeting companies like Tencent, Baidu and Alibaba.
Beijing’s power game against the tech giants has only just begun, Mordy added, and this is reflected in market prices. While Chinese technology used to be seen as a better investment than its US FAANG counterparts, who have received more antitrust attention, regulation has now spread around the world.
Because of the dominance of big tech, companies have grown into massive monopolies since 2009, viewed by many as an abuse of their power. China wants to curb them, and the market is increasingly reducing this risk factor: China’s technology companies underperformed this year.