Amazon, Google, Facebook, Apple, Microsoft and others are now some of the largest and most powerful corporations in world history. Their reach is global, their resources and power eclipsing all but the largest nations. With their monopolies on entire market sectors and their political impact, has Big Tech become detrimental to the public good?
The Big Tech companies need to be broken upShow moreShow less
The Big Tech companies have built monopolies in their markets via underhand, anti-competitive practices. They cannot be trusted to protect sensitive data.
The availability of capital for new tech start-ups has declined since the rise of Big Tech, and growth of innovative new businesses has slowed. The availability of investment capital to start-ups is contingent upon investors' confidence in the potential of new enterprises to generate large returns on investment by increasing the company's value well beyond its worth at the time of investment. Big Tech companies dampen this confidence by preventing start-ups from growing past a point where they become targets for acquisition (or decimation) by Big Tech.
Consequently, it has become harder for new tech companies to secure venture capital since Big Tech began to dominate the technology industry. Both the prevalence of young tech companies and the proportion of high-growth young tech companies have declined steeply since 2000. U.S. start-ups have slumped and productivity growth has slowed since 2005, and financing rounds for tech start-ups have become significantly scarcer since 2012.
[P1] Since the rise of Big Tech, the amount of high-growth new tech companies has declined dramatically.
[P2] Breaking up the Big Tech companies would re-invigorate innovation.