France24 commentary of French Government Digital Tax initiative

This is another example of the pollicization of the online world and the large datasets and global influence that some observers call “transnational monopolization” by the large American owned social media and search companies.

It depends on what side you are on in political debate but the actual facts of the economics of these cloud platforms are they dominate the global and local markets in countries in cases 70 to 90 percent with no market competition.

The push back is their argument of being an “enabler” of the market and they have to pass on costs to consumers if anyone tried to regulate them. But like the FTC recently saying breaking up Facebook from its integrated Instagram, WhatsApp and messenger could “be difficult” It is a very hard problem to unpick these massive monolithic behemoths that have deliberately grown their power and acquired any likely competitors who come close to challenging their dominance.

The action by the French has also been widely cited as seeking the global OECD to take this same action so that it becomes a legitimate concern that is addressed at the global level these companies currently operate across. The US is themselves investigating these companies anyway so the politicization of tariff threats is just another noise that missing the underlying economic reality of these giants and their unfair advantage on local government economies let along with the problems that are also emerging in fake news and the spread of miss-information and lack of privacy. Personally, a more drastic breakup strategy is needed to redress a situation that has gone on too long with the early internet wild-west and the realization of the need for better governance.

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