The influence of big tech companies on our lives is undeniable. With limited oversight and a focus on maximizing profits, these corporations have become increasingly powerful. They rely on unrestricted access to our personal data to maximize profits, which puts them at odds with any form of regulation. They actively seek to shape policies that protect their lucrative revenue streams, and resist regulatory measures that could limit their power.
Without accountability, big tech companies put profits ahead of our privacy. They leave us vulnerable to misinformation and bias, and contribute to the shaping and manipulation of public opinion. As the digital world continues to develop, we’re likely to see more attempts to deregulate to protect their bottom lines.
What’s at Stake for Big Tech?
Let’s take a look at what’s at stake. In 2024, Google generated $264.59 billion in advertising revenue, accounting for over 86% of its total revenue. It is the world’s dominant digital advertising platform. We, the users, are the product (read our blog post “There’s no such thing as free email” here). In a close second, Meta (Facebook) reported $164.5 billion in revenue for the same year.
It’s no secret that big tech companies aim to minimize government involvement in their operations:
- Big tech advocates for self-regulation. They claim they can effectively manage their own practices without government oversight, often citing their internal policies aimed at privacy and security issues.
- Big tech argues that overly stringent regulations can stifle creativity and slow the development of new technologies and services. Having to be compliant with regulation is costly and resource intensive, and hinders innovation.
- With significant lobbying power, big tech companies influence policymakers to preserve their business models and maintain profit margins that rely heavily on extensive data collection and targeted advertising. Regulatory measures could limit their influence.
Government Contracts and Influence
Several big tech companies, including Google, Microsoft, Amazon, and Twitter/X, hold lucrative contracts with the U.S. government. The partnerships span various sectors, from cloud computing and cybersecurity to defense and data services. These contracts offer substantial revenue streams, but raise serious concerns about transparency and accountability.
When big companies and government are too intertwined, there is a real risk that the government ends up relying on these companies too much. What happens when the Pentagon and the Defense Department depend on the cooperation of tech moguls for their most basic functions? It would seem that there is a clear conflict of interest, and that accountability, ethics, and security takes a backseat.
To put this in perspective, contracts awarded to major tech firms between 2019 and 2022 were worth as much as a combined $53 billion (€50). (And don’t forget, these are taxpayer dollars.)
- Amazon was awarded a five year contract worth $10 billion by the National Security Agency in 2021, for hosting cloud services for intelligence and surveillance data.
- Between 2018 and 2022, Microsoft was awarded $31 billion, and Alphabet, Google’s parent company $4.3 billion. These are considered conservative estimates, as defense contracts are classified information.
- At the same time, Microsoft, Oracle, Alphabet/Google and Amazon spent over $55 million in lobbying efforts to secure defense contracts.
- Space X has contracts already worth $20 billion, and was just awarded another worth $38.85 billion with Nasa.
Such collaborations raise real concerns about data privacy and surveillance, and the influence of private corporations on public policy. This is true now more than ever.
Innovation and Advancement
Big tech companies are set to make massive profits from AI, with the market expected to be worth trillions in the next few years. As AI continues to expand, giants like Google, Microsoft, Amazon, and Meta are cashing in on everything from automation and data processing to personalized services and advertising. With their access to vast data and computer power, they are in the perfect position to boost both their revenues and influence even further.
Big Tech will of course argue that regulation stifles innovation and puts restrictions on technological advancement and competition. They want AI’s rapid development and innovation prioritized over regulation, in order for them to operate freely. But without proper oversight, the technology could perpetuate inequality, reinforce biases, and be misused in ways that harm individuals and our society.
The Impact on Society
Big tech companies have obtained significant power, controlling vast amounts of information and influencing various aspects of society. Their reach is so extensive that, in many ways, they rival state governments in terms of influence and control. This concentration of power in the hands of a few private companies raises concerns about accountability, transparency, and the consequences for democracy and social stability.
The Information War: The Fight for Facts
Big tech plays a crucial role in fact-checking, yet social media platforms often prioritize sensational or misleading content over factual information, because their algorithms are designed to boost user engagement. Companies like Meta, Twitter/X, Google, and LinkedIn have turned away from efforts by EU authorities to regulate social media and combat disinformation.
Factual information is essential for fostering healthy debates on critical civic issues. When discussions lack a foundation in verified facts, citizens are denied the opportunity to make informed decisions and engage in meaningful dialogue. The notion that everything is open to interpretation simply because influential individuals say it, undermines the integrity of public discourse. When powerful figures claim that fact-checking regulations are restrictive, it becomes evident that they prioritize profits and power over ethics and values, disregarding the harm caused by misinformation.
A Threat to Democracy
The unchecked power of big tech companies is seriously destabilizing governance. With their control over the flow of information, these companies influence what we see, hear, and believe – all for profit. Their algorithms are designed to maximize engagement, even if that means spreading misinformation or stirring up division. By shaping what people see online they distort democratic processes, manipulate elections, and undermine trust in institutions.
Lack of regulation allows these tech giants to operate without accountability, As they expand unchecked, they undermine the very foundations of good governance and make it increasingly difficult to preserve social cohesion. Powers that were once solely in the hands of the state are now slipping into the control of private companies, but without the necessary checks and balances that are essential in societies governed by the rule of law.
Get Them Hooked Young
The internet and social media have become integral parts of young people’s lives, dramatically shaping their behavior and development. While these platforms offer opportunities for connection and learning, they also present risks. Inappropriate content, cyberbullying, cybercrime, and privacy violations to name a few. Premature engagement with social media can affect mental and physical health, leading to issues like addiction, social isolation, and vulnerability to manipulation.
Stricter guidelines on age-appropriate content, enhanced data privacy protections, and stronger safeguards against addictive algorithms designed to keep kids engaged longer are essential for protecting their health and development. Unfortunately, such regulations would threaten the profits of big tech companies, highlighting a troubling reality that society often prioritizes profit over ensuring safe online spaces for young users.
Governments Outsourcing Accountability
Governments use tech companies to bypass regulations and avoid direct responsibility. For example, police in the U.S. can hire private hacking firms to access private data that they can’t obtain legally themselves, and local governments may use technology that discriminates against citizens without being held accountable for its impact. This highlights the need for clearer regulations to ensure that tech companies and governments are held responsible for their actions. Without these safeguards, the public’s right to privacy and fairness is at risk.
Controlling Infrastructure
Big tech companies have invested heavily in infrastructure such as subsea cables for high speed internet data transfer. Google, Meta, Microsoft and Amazon are all owners of subsea cables. The amount of international cable capacity used by these tech giants has surged from 10% to 71%, according to a report by the Australian Strategic Policy Institute. Meta is now investing $10 billion+ in a Project Waterworth, which will be the world’s longest subsea cable project. This will give Meta increased control over its services.
When big tech owns their own infrastructure, it poses further questions about their ability to control user content and influence how it is distributed. This concentration of power can limit alternatives and create dependence. Users have less control over the information they receive, and smaller competitors struggle to thrive.
The Environmental Toll
Big tech companies have a huge environmental footprint, largely due to their massive energy consumption, e-waste, and reliance on raw materials like rare earth metals. Data centers, which power cloud computing and other services, consume huge amounts of energy, often driving up carbon emissions. This problem is especially glaring in the U.S., where renewable energy sources are still limited.
The fast pace of tech upgrades creates massive e-waste, and the mining for materials to build these devices is damaging both to the environment and to the people involved. Add to that the mountains of packaging waste and the culture of disposable goods, and the environmental cost is steep. While companies like Microsoft, Apple, and Google have made some moves toward sustainability, the truth is, their overall impact is still significant. It’s clear that we need stronger accountability.
Big tech rely on energy-demanding data centers with only a small portion coming from little renewable sources. Some will claim commitments to sustainability, but the reality might be very different. With the advancement of AI, the need for energy will dramatically increase, and very little of that energy looks to be renewable or environmentally friendly. This raises serious questions about future carbon emissions from the industry.
The Importance of Oversight
The need for robust privacy protections has never been clearer. Around the globe, governments attempt to regulate big tech companies in varying ways. In the U.S., there is little comprehensive federal privacy regulation that applies uniformly across all sectors, but the Federal Trade Commission (FTC) has taken a more active role in addressing privacy violations and anti-competitive behavior.
- Google was fined Google $170 million in 2019 for consumer protection related offenses, $391 million in 2022 for location tracking, and $700 million in 2023 for abusing power in the app store.
- Apple was fined $89 million in 2024 for mishandling consumer disputes
- Meta was fined $5 billion in 2019 for privacy violations, and $35 million in 2022 for violating campaign finance laws.
- Amazon was fined $24 million in 2023 for violating The Children’s Online Privacy Protection Act, and $35 million for privacy violations and data breaches. In 2024, Amazon was fined almost $6 million for violating labor laws in California.
- Microsoft was fined $20 million in 2023 for violating the Children’s Online Privacy Protection Act.
- Uber was fined $20 million for consumer protection violations in 2023.
- Twitter/X was fined $150 million in 2022 for privacy violations.
You can search all the FTC fines here.
European Regulatory Proceedings
In Europe, big tech has encountered more significant challenges. The General Data Protection Regulation (GDPR) emphasizes protecting individual users’ personal data, putting it at odds with the practices of many big tech companies. The GDPR serves as a powerful tool for keeping big tech companies in check, ensuring that they operate transparently and responsibly.
The European Union has also established the Digital Services Act, a framework ensuring safer online spaces, which holds tech companies accountable for illegal content. Recently, the world’s most comprehensive AI law known as the AI Act established requirements for high-risk AI use.
Here are some notable fines on big tech by European regulators.
- The total amount of fines imposed on Google by the European Commission from 2017 to 2024 adds up to approximately $11 billion. Additionally, French regulators has fined Google over $785 million between 2014 and 2024.
- From 2019 to 2025, Meta has been fined by Norway’s data protection authority, Datatilsynet, with a daily fine of 1 million NOK (approximately $100,000) for privacy breaches, $1.25 billion by Ireland’s DPA in 2023, and $836 million by the European Commission in 2024.
- In 2021, Norway’s data protection authority fined Grindr LLC $6.8 million for sharing special category data without valid consent.
- Apple faced $2 billion in fines from the European Commission in 2024 over its App Store policies on streaming, and is also dealing with a $13.6 billion tax bill in Ireland.
- Amazon, after an investigation into its marketplace practices, committed to legally binding changes in 2022 to avoid further penalties.
- There are several cases currently before the European Commission, including proceedings against Microsoft on antitrust charges under GDPR, and Alphabet/Google, Apple and Meta under the Digital Markets Act (DMA) over concerns about compliance.
- Twitter (now X) is under investigation by the European Commission and France’s cybercrime unit for potential breaches of the Digital Services Act and algorithm manipulation.
You can search all the cases here: Europa.eu
Another resource is this GDPR Enforcement Tracker.
Around the World
Here are some notable fines around the world in recent years to give an idea of the scope.
- South Korea fined Apple $14 million in 2024 for in-app payment breaches. Russian fines in 2024 totaled $14.4 million, and Spain $161 million in 2023 for price fixing.
- South Korea’s data protection agency fined Google in 2020 $50 million and $50 million in 2022, for violating data privacy laws. In 2021, India levied a fine on Google for $162 billion for anti-competitive practices. Spain fined Google $10 million in 2022 for violating EU rules, and Australia fined Google $40 million in 2022 for misleading users about location data.
- South Korea fined Meta $22 million in 2020 for violating the country’s data privacy laws. Nigeria fined Meta $220 million in 2024 for abusive practices, and India fined Meta $24 million for anti-competitive behaviour in the same year.
- Turkey fined Google $75 million in 2024 for violating competition rules.
With these hefty fines, it’s no wonder that big tech wants less regulation, and that the push for less oversight will continue.
In Summary
The growing power of big tech companies presents serious challenges to privacy and democracy. With their vast control over data, platforms, and even public opinion, these companies have the ability to influence decisions, manipulate consumer behavior, and bypass regulations, often without accountability. This unchecked influence undermines the principles of transparency and fairness, while raising concerns about how much control should be given to private entities over our daily lives.
As governments and regulatory bodies around the world deal with the implications of big tech’s power, it is important to safeguard ethical standards and public interests. By implementing robust regulatory frameworks, promoting transparency, and fostering collaboration, we can create an environment where innovation thrives alongside the protection of individual rights. At Runbox, we feel strongly that technology should reflect a commitment to ethical practices that serve the greater good. That is why we are dedicated to protecting user rights, to transparency and to acting responsibly.
