The term tech giant is used to describe any big technology establishment with a massive global footprint and huge influence on the world. They are often accused of controlling the Internet, skewing information or opinions and even creating monopolies. Often they are subject to anti-trust lawsuits, which seek to limit their control and increase competition for the benefit of consumers.
The most powerful tech companies are those with a platform business model, which allows them to connect suppliers to customers (such as advertisers to social network or search engine users, app developers to device owners or vendors to online shoppers). These connections create network effects that can lead to ‘winner takes all’ results and give the company unassailable market power. They also collect a huge amount of data about buyer and seller behaviour, giving them the information they need to make decisions that will maximise their profits.
Tech giants can also exert political power through lobbying and shaping industry self-regulation. But their greatest source of political influence may be their highly engaged and supportive customer base. These people see the benefits of tech innovation, and as a result they have a tacit alliance with the companies that develop it. This translates into a unique form of customer-centric political activism, and has given rise to ideas like the “Apple Tax”. The most influential tech giants are innovating faster than governments, with Microsoft, Alphabet, Apple and SpaceX leading the way in artificial intelligence, and Amazon, Apple and Google pushing into healthcare (with the launch of the Alexa Health Service) and medicine (with the acquisition of PillPack).
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