The progress in the field of digital age has been inescapable; for business to grow and survive in the era of digital competition, innovation is the key. The way we live and look at things has changed dynamically. Consumers in the digital age have access to a host of services and products that would have previously been considered available only in the realms of science fiction.
The digital era has seen the growth of Big Tech Companies such as google, Amazon, Facebook, Apple and Microsoft which has a combined valuation of over $5 trillion.
In order to ensure digital sovereignty and Indian App ecosystem, some of the experts have pointed out that India needs to have its own home-grown App store like Google’s play store or Apple’s App Store. This will enable us to combat the monopoly of these technological giants and give push for digital economy.
DOMINANT MARKET POSITION
- Role of Online Platforms
Many tech-giant companies have captured control over key channels of distribution. Their role gives the platform a dominant position to control the fates of other business.
For example, Through Chrome, Google now owns the world’s most popular browser, a critical access to the internet. Through google maps, it has captured more than 80% of the market for navigation service.
- Acquisition of Smaller Competitors
The big tech giants resort to acquire the smaller competitors to retain their dominant market positions. Like Facebook, which acquired WhatsApp and Instagram to retain their superiority on social media platforms.
- Advertisement marketing
Big tech companies create a discriminate position in the market which forces the companies to sell and advertise their products through their platform to create high chance of viewership and opportunity to be preferred. For example, Google give higher preference to the companies which place their advertisement with them.
- Scope of Profit
These big tech companies have higher scale of economies and profit compared to the smaller rival companies.
MONOPOLY OF MULTINATIONAL COMPANIES
- Competitions in digital markets promotes incumbent firms and new entrants to build new technologies and improve business processes. But monopolization lacks the incentivization to these firms and lacks motivation to promote investment in research and development.
- In spite of having wide range of choices, most of us use the most advertised product depending on the functionality. It is because we are pre-loaded with this in-built perspective of the product and hence in a way, limit our choice.
- The imposition of anti-competitive condition to eliminate threats to its monopoly is much in the center of attraction after Facebook acquired WhatsApp and Instagram. This course of conduct harms competition, leaves consumer with few choices.
DEALING WITH THE DOMINANCE
- Strengthening Anti-trust law – The Anti-trust laws such as Competition Act,2002 need to be strengthened; Empower Competition Commission of India to deal with abuse of dominant market position by Big Tech Companies.
- Breaking up the big tech –
- Platforms to evolve into separate companies: – this proposal would break up tech companies by separation and underlying platform from the products and services sold on it. For example: Amazon would no longer own Amazon marketplace and sell its own private label goods.
- Restrict the number of products the big tech companies can offer.
- Reversal of past Acquisition – Reversal of such acquisition held by Big Tech companies which enabled them to enjoy dominance.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
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