Tech giants are increasingly aspiring to occupy fields traditionally belonging to states. Can companies fully replace them, and if so, is it good for anybody? Tech giants, such as Google and Facebook, are usually huge multinational companies. They are in possession of gigantic databases of information by using very effective and efficient algorithms that makes them able to develop cutting-edge technology to innovate society. This innovation has also led to the insecurity of personal data and the EU took measures by introducing a protection law called the GDPR. In consequence, we changed our way to pay and might also lead to rethinking other traditional ways of life.
There is a fundamental dilemma about offering multinational companies the power to gain elements of state sovereignty. Our economic system is based on an economically orientated model, whereas companies generally seek to maximize their own interests/profit. The major problem with multinational tech companies is that their business model depends on simplicity and advertisement; the aim is to maximise the comfort of the user so that they might realise the result they wish for without strict security standard.
Classic nation states often focus on domestic policy and traditional foreign policy, and they lack possibilities to resolve global issues. There is a need to reconsider our attitude to society and to welcome new actors. Multinational tech giants might use their innovations as well as their profit, to help in areas where a traditional state would fail. The author’s conclusion regarding whether a state or a tech giant should dominate is that there is a need for both.
Author: Rafal Fabianowicz
https://ajtk.hu/en/research/in-focus/online-2020-1-in-focus-tech-companies-the-new-sovereigns