Economic, political, and social factors impeding the regulation of digital platforms

Abstract

This paper analyzes the economic forces that led to the creation of the dominant digital platforms, including Google, Amazon, Meta, Microsoft, and Apple (GAMMA). There are many challenges in regulating big tech, considering the economic, political, and social factors involved. In the economic sphere, the reinforcing effects of networks and big data give GAMMA an advantage over new entrants and smaller players. They generate insights about consumers and innovate more easily due to collecting and analyzing vast amounts of information. They have a great advantage due to their size and have been sued for abuse of their power. In terms of politics, speech online has polarized US society, but it is difficult to regulate despite the harassment, bullying, and vigilantism that is fostered and the children that it has harmed. Numerous factors hinder regulation, so alternative methods will be necessary to minimize their negative impacts on society. These can include education and professional associations to establish standards. Non-government stakeholders will need to develop information, tools, and guidelines that can limit the harm done by these dominant platforms.