In the late 19th and early 20th centuries, there was an epic fight of so-called muckrakers — journalists and novelists such as Frank Norris, Upton Sinclair, Lincoln Steffens, and Ida Tarbell, along with trust-busting politicians like Teddy Roosevelt — against rail, steel, and oil monopolies. Whatever one thought of their sensationalism and often hard-left socialist agendas, they at least brought public attention to price fixing, product liabilities, monopolies, and the buying of politicians.
No such progressive zealotry exists today in Silicon Valley and its affiliated tech spin-offs. And the result is a Roman gladiatorial spectacle with no laws in the arena.
In the last two elections, Facebook has sold its user data to Democratic and, apparently more controversially, Republican campaign affiliates. Google, Twitter, and Facebook have often been accused of censoring users’ expression according to their own political tastes. Civil libertarians have accused social-media and Internet giants of violating rights of privacy, by monitoring the shopping, travel, eating, and entertainment habits of their customers to the extent that they know where and when Americans travel or communicate with one another.
Apple, Alphabet (Google), Amazon, Microsoft, and Facebook are the world’s five largest companies in terms of stock value. Together they have market capitalization of about 3 trillion dollars, about the net worth of the entire country of Switzerland.
Until the rise of high-tech companies in the 1980s, there were, for better or worse, certain understood rules that governed the behavior of large corporations. Services deemed essential for the public — power, sewage, water, railroad, radio, and television — were deemed public utilities and regulated by the state.
Anti-trust laws prohibited corporations from stifling competition: Price cutting and fixing, dumping, and vertically integrating to ensure monopolies were all illegal. The government broke up large “trusts.”
The public looked askance at the power of mega-corporations and their ability to sway public opinion through the monopolistic purchases of media and advertising and their ability to liquidate smaller rival companies. Product liability laws, if often punitively and unfairly, held corporations accountable even for the misuse of their products: Smokers sued the tobacco companies when they suffered from lung cancer and emphysema. Baby cribs that had hard edges were liable for infant injury.
Yet today’s Silicon Valley and related high-tech companies are largely exempt from such traditional regulations. Facebook and Google run veritable monopolies. Facebook alone controls an estimated 40 percent of the world’s social-media market. It has more than 2 billion monthly users. Google controls about 90 percent of the world’s search-engine market. Apple earns $230 billion in annual revenue and is nearing a market value of $900 billion. Microsoft controls about 85 percent of the word-processing personal and business markets. Amazon alone was responsible for about 45 percent of all online sales of any sort last year. It has huge contracts with the Pentagon and owns the Washington Post. When competitors to Big Tech arise, they are offered billions of dollars, cashed out, and absorbed. Facebook has bought more than 50 rival companies. It acquired former competitor WhatsApp, the world’s leader in messaging platforms, for a staggering $19 billion. Alphabet/Google has bought more than 200 companies, YouTube among them.