The contribution Gafam, or: How Big Tech The global economy dominates Fabian Peters first appeared on Basic Thinking. You always stay up to date with our newsletter.
Big Tech’s power continues to increase. Instead of steel and concrete, data play an increasingly important role worldwide. Five US companies in particular, which are also known as the acronym Gafam, now seem to dominate the global economy.
It was once the large automotive groups as well as oil and gas magnates that dominated the global economy. In the meantime, others vibrate the scepter. Because the times when most of the money with cars and fossil fuels could be brewed are coming to an end. Instead, data play an increasing role and the large IT companies are at the top of the global economy-above all the so-called Big Five.
What is Gafam?
Gafam is an acronym, i.e. an abbreviation that consists of five other words from the initial letters. In this case from the initial letters of the five largest US technology groups: Google, Apple, Facebook (now Meta), Amazon and Microsoft.
They are considered the dominated players in the technology industry and are among the largest companies in the world. Because of their market power, they have an impact on everyday life and the life of millions of people worldwide. Gafam is also known as Big Tech; The five companies are considered Big Five.
These are the big five
- Google (Alphabet) is primarily known for its search engine of the same name and controls 90 percent of the global search engine market. With Android, the company also provides the largest mobile operating system and runs services such as YouTube, Google Maps and Gmail.
- Apple is the largest smartphone manufacturer in the world. With iOS, the company also provides the world’s second largest mobile operating system and mostly leads it as a closed ecosystem.
- Meta (formerly Facebook) dominates the social media market with Facebook, Instagram and WhatsApp.
- Amazon is the largest online mail order company in the world. With the Amazon Web Services (AWS), the company is also the market leader in cloud computing.
- Microsoft is known primarily for its Windows operating system and its office software. The company is the market leader in both areas. Common with AWS Microsoft dominates the cloud computing market.
How Big Tech influences the world
The market control of Big Tech is a central point for the power of the corporations. In addition, they exercise control over a large part of the digital infrastructure. Many people and companies are dependent on the Big Five products. While numerous companies cannot now do without the software solutions from Microsoft or Amazon, most smartphone users are automatically part of the Apple or Google ecosystem.
Big Tech also has such a large amount of personal user data that even secret services are jealous. In the United States, the authorities can therefore by law, for example, on the Data from Google and access Co. – for reasons of national security. The Big Five themselves use their data in turn to target advertising and carry out market analyzes.
This not only enables you to optimize your own products, but also to open up new markets. Gafam also regularly takes over start-ups to consolidate their market power. At the same time, they strive for dominance in innovative areas such as artificial intelligence or quantum computing.
Big Tech is also socially enormous power. While Amazon has dominated online trading and has massively changed retail, social media such as Instagram and Facebook influence public opinion formation and political debates. At the same time, millions of jobs hang on Gafam.
criticism
Despite and due to the almost enormous power of Big Tech, the debates about regulation of Gafam are louder. The European Union in particular is trying to limit the market power of the Big Five. Apple had to bend and open its iOS operating system in the EU to third -party providers.
Alternatives to Google must also be offered on new Android and Apple devices. The problem: Gafam’s market power is now so great that many people hardly know or want to use alternatives. Many companies are also adopted before they can develop into real competitors.
In addition to economic power, the Big Five also have an impact on politics and society. Amazon, for example, is criticized to displace small retailers and exploit employees. Meta has in turn changed its data protection guidelines and is now increasingly leaving offensive content and fake news – and thus influences public discourse.
The efforts of many countries Gafam also fizzle out that Big Tech actively operates lobbyism. Political decision -makers, due to lengthy procedures and decision -making processes, simply hardly come after the current technological development.
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The contribution Gafam, or: How Big Tech The global economy dominates Fabian Peters first appeared on Basic Thinking. Follow us too Google News and Flipboard.
As a Tech Industry expert, I am well aware of the dominance that GAFAM (Google, Apple, Facebook, Amazon, Microsoft) has over the global economy. These tech giants have achieved incredible scale and power, allowing them to control vast amounts of data, shape consumer behavior, and influence government policies.
While there are undeniable benefits to the innovations and convenience that these companies provide, there are also significant concerns about their impact on competition, privacy, and democracy. Their ability to squash competition, manipulate markets, and exploit user data has raised alarm bells among regulators and lawmakers around the world.
It is crucial for governments to step in and regulate these tech giants to ensure fair competition, protect user privacy, and uphold democratic values. This may involve breaking up these companies, imposing stricter regulations on their practices, or implementing antitrust measures to prevent them from abusing their power.
As a Tech Industry expert, I believe that it is essential for society to strike a balance between harnessing the benefits of technology and ensuring that it does not come at the cost of our fundamental rights and freedoms. Only through responsible regulation and oversight can we prevent Big Tech from dominating the global economy to the detriment of all.
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