# RanchiMall Content Collaboration Output

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Exported by RanchiMall Content Collaboration on FLO Blockchain
Revenue numbers for Big Tech

Profit margins peaked for the big techs despite the uncertainties created by the pandemic. Many companies experienced a precarious position but the tech industries shone throughout as they evolved opportunities for people. And since people were quarantined, digital platforms became a necessity for them. Hence, the digital curve accelerated with time without bouncing back, and it seems unstoppable. FAMAG, a well-known acronym for the big techs- Facebook, Apple, Microsoft, Amazon, and Google, showed a substantial increase in its revenues and profits during the second wave. People relied more on social media platforms during the pandemic because it helped them stay in touch with each other. Facebook, one of the many social networking sites, benefitted the most in the global turbulence. During the mid of the second Covid wave, its revenue increased by more than half, causing its profit to double. The tough times forced people to depend on online shopping, deliveries that helped giants like Amazon to perform even stronger. Its extending services, subscriptions, prime memberships, and third-party seller services have helped it to rise to new heights. Owing to the fact that people had to work from home, Microsoft Azure, a cloud computing platform, saw a surge in its services. Thus, it saw an increase in its revenues by one-fifth, which was much higher than any year. "Google is embracing remote work post-pandemic," said Google CEO Sundar Pichai, as its advertising and cloud computing services saw tremendous growth. Consequently, Alphabet, the parent company of Google, saw an increase in its revenues by one-third. Many companies believe that the work-from-home culture will remain prominent so that cloud service providers may continue to reap benefits even after the crisis. While the pandemic strictures were fatal for most economic sectors, the big techs are among the few winners.

Big Techs driving the US Stock Market

The stock market has dominated the global market since the beginning of the pandemic. The total value of the S&P 500 in 2020 stands at more than $7 trillion, accounting for almost one-fourth of the index's market capitalization. It is 20% less than before the pandemic. This reflects a shift to an increasingly technology-driven economy that is stimulated by the coronavirus outbreak. The big techs have seen their shares jump by 22% this year, with Amazon flying at 86%. Compared to 2020, the overall stock performance in the S&P 500 to date is less than 4% in 2021. The capitalization of the S&P 500 in 2015 has increased by $6 trillion. Out of this, $4 trillion is from the big six techs: Apple, Facebook, Microsoft, Alphabet, Amazon, and Netflix, up to two-thirds of the total profits in the S&P 500. Since 2015, the index has gained 56.5%. And after 23 March 2021, the index is up to 42.1%, which is approximately three-quarters of the gains of the previous five years. The holdings of major technology companies flew beyond other markets. After months of agony, the group staged a comeback with several tech giants who broke records in recent sessions. Additionally, beyond achieving its first high since January at the start of the week, Apple Inc.'s stock closed at a new high. These few companies can dominate their contemporary companies and set the rules of the global economy. This kind of constant dependency was never seen before. However, this kind of concentrated power is predicted to be dangerous.

Should the Big Techs be regulated?

The rise in shares and profitability of big tech is highlighting their monopoly in the market and triggering competitors. Allegedly, the big techs were trying to either subjugate their rivals or acquire them to grab the market, just like Facebook acquired WhatsApp and Instagram. In addition, they use local media information and publish it on their platform, for which a proper share of revenue is not given to the concerned authorities. The emerging companies are condemned by the big techs, as they manipulate market practices to increase their dominance and suppress their competitors. Like Facebook, it didn't offer sufficient data to show that the world's largest social network is a monopoly. Google has constantly made efforts to monopolize the mobile search market and its power over advertising technology. Play Store is seen as the default app store on Android, although users can also download apps from stores operated by companies like Amazon or Samsung or even install them. The company has loosely forced application developers to use its payment system for purchases made through the Google Play Store. Moreover, the company also paid higher to the app developers to prohibit them from removing their app from its Play Store. They must refrain from using their monopolistic power in a hyper-dominant market position to unlawfully leverage billions of added dollars from small companies' competitors and consumers beyond what should be paid. This illustrates how the concentration of power in a few hands leads to helplessness in the hands of the many.

Recent steps to tame Big Techs

Tech giants leading the world market have come under the suspicion of analysts. Glaring at the uncontrolled behavior of big techs, some countries have formulated rules and regulations. They have proposed legal restrictions on them to promote healthy competition among small, medium, and big companies. For instance, the European Union enacted the Digital Services Act (DSA) and the Digital Markets Act (DMA). These laws regulate intermediary services like social media platforms, internet providers, and e-commerce intermediaries. They also act as a sentry between companies and end-users to provide safety for users' data and create a healthy competitive environment among other companies. On the same lines to proscribe unlawful business practices in the U.S., Antitrust law was formulated in 1890. Under this law, several acts, like the Sherman Act, Free Trade Commission Act, and Clayton Act, promote fair competition and provide economic liberty. The U.S. president, Joe Biden, approved 72 recommendations and actions. These were executive orders to crack down on big tech and other sectors for anti-competitive practices. These orders will not only protect smaller competitors but also protect the consumer's personal information from exploitation. On the other hand, the Indian government had a tussle with Twitter for not appointing India-based nodal officers, compliance officers, and grievance redressal officers. On this issue, the new IT minister of India, Ashwini Vaishnaw, warned Twitter to follow the "law of the land." Otherwise, Twitter could be held accountable for users' content, and lose protection under section 79 of the IT act. In addition, last year, the French finance ministry decided to levy a digital tax on big techs. The country adopted a "digital services tax" bill in July 2019 that imposed a 3% tax on digital turnover for companies whose annual sales exceed €750 million worldwide and €25 million across France. The American tech companies, Google, Amazon, Facebook, and Apple (GAFA) were asked to pay 3% tax on the annual turnover for the year 2020. The U.S. government retaliated and warned of levying up to 100% on $24 billion worth of French goods. Later, France agreed to delay the imposition of the digital tax on American companies. The tax was to be levied on 27 companies including, American, German, French, and Dutch companies. However, it has been delayed due to the political differences between the countries and concerns about the pandemic worldwide. The European Union and the U.S. laws should inspire and motivate other countries to frame laws to regulate the tech giants in their respective countries. This will provide opportunities for small businesses to thrive. Hence, it would help in curbing monopolies across the world.

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