Document Type
Article
Abstract
Over the last 10 years, while we have seen the emergence of digital technologies able to improve human welfare, we have also seen the unparalleled concentration of that technology into the hands of a few global behemoths such as Microsoft, Google, Amazon, Facebook, and Apple (Big Tech). However, we would be wise to tame this runaway concentration of power in Big Tech; the recent revelations about the role that Facebook data played in the United States presidential election provides a stark illustration as to why.
This Article will analyze how and why the monopolization of digital technology occurred. In particular, this Article examines the role of intangible property, such as data and intellectual property, as well as the phenomenon known as the “network effect.” Intellectual property has been suspected of driving the monopolization of digital platforms. However, intellectual property is normally an afterthought and does little to prevent competition with the core business of Big Tech companies. Rather what allows these companies to monopolize their business is the network effect acting on data in a positive feedback loop.
Dealing with the problems of a network effected market has always been difficult. In the past, competition regulations were the go-to tools. However, such regulations have so far proven largely ineffective because data does not fit squarely into traditional economic models. The other traditional alternative was consumer law. Even though we will soon see the implementation of stricter data protection laws with the introduction of the GDPR in Europe, its primary focus is on individual privacy, not monopolized power.
This Article will argue that the reason for the ineffectiveness of laws to deal with some of the harmful effects of Big Tech monopolies is that there is something about monopolies on data that is inherently different from other more benign goods or services. Data is information. It is this distinctive characteristic of data that has implicated Big Tech monopolization across such a broad range of fields, including personal privacy, democracy, security, innovation stifling, hacking, political influence, and media. So, while re-imagined competition and consumer regulations may work to prevent inflated prices and Draconian privacy policies, they will not address the more pressing problems of Big Tech monopolies on data.
Recommended Citation
Daniel McIntosh,
We Need to Talk About Data: How Digital Monopolies Arise and Why They Have Power and Influence,
23 J. Tech. L. & Pol'y
(2018).
Available at: https://scholarship.law.ufl.edu/jtlp/vol23/iss2/2