Big Tech, also called the GAFAM, FAAMG or Tech Giants is a relatively new name given to the top five largest and dominating companies in the Information technology sector of the United States today-namely Google, Apple, Facebook, Amazon and Microsoft. These are the same companies that founded the world’s most valuable company, Microsoft, way back in the 90s. The combined revenues and sales of these tech giants amount to billions of dollars annually. Being one of the most powerful and profitable companies in the world today, it is not surprising that these companies are the ones that get the lion’s share of research and development budgets and spend millions upon millions of dollars each year on advertising. They have also become the mainstays of the global economy, employing millions upon millions of workers in the process of providing services to their customers.
Despite being the most dominant force in the global economy today, and having been at the forefront of several breakthrough innovations, these tech giants have also found themselves at the receiving end of several legal disputes with other companies over patents and copyrights. A good example of this is the case of Samsung against Apple over the design of the iPhone. After going through several rounds of patent litigation in the courts, the US Supreme Court finally came to a decision in January holding that there was no valid patent protection for the iPhone design. Although Samsung was not happy with this decision, they quickly changed their tune when the US Federal Circuit Court of Appeals for the First Circuit affirmed the decision.
To date, the European Union and the United States Federal Trade Commissions (FTC) have conducted many investigations into the practices of the tech giants. The European Union pursued cases against Apple over issues related to its bundling of various applications, including the iPhone, with its mobile operating system, and Google over its practice of collecting the personal data of its users without their consent. The European Union ultimately lost its attempts to bring cases against Apple in the European Court of Justice, the Permanent Court of Arbitration, and the ECJ. On the other hand, the US Federal Trade Commission commenced investigations in the matter. One of the reasons for the US FTC’s interest in the matter may be the fact that the European Union has become increasingly concerned over the fact that the iPhone affects its members’ privacy, while the US authorities may have more pressing concerns to resolve.
Since the departure of Steve Jobs from Apple, the company has had its share of privacy-related issues. Concerns over the use of “state of the art” technologies by some competitors have led to the creation of the Privacy and Identity Protection Service (PIP) and the E-privacy Working Group. The Privacy and Identity Protection Service cover the interests of customers, while the E-privacy Working Group attempts to harmonize the various laws governing the tech companies to ensure optimal level of consumer protection. While the problems between the Union and the US Federal Trade Commission are still fresh, the FTC has already launched several investigations into the tech giants. In one instance, it filed a complaint with the FCC over Apple’s attempt to offer free i-Books to its iPhone users. The FCC later dropped the matter.
The Union, however, is not alone in its efforts to protect consumers from the predatory pricing practices of the tech companies. The Association of American Laser Centers also filed a complaint against three companies over their allegedly deceptive acts and lack of disclosure statements in their sales pitches. The complaints were rejected by the courts, which found that the aapl marketing rules were preempted by federal law. The court also stated that the aapl companies were not acting in bad faith, but rather had met all the applicable state and federal requirements by abiding by federal and state marketing guidelines.
If the European Commission would have their way, the tech giants would be in hot water with the European Union, the United States Department of Justice, and the United States Federal Trade Commission. A final ruling in this case may prove to be a major test for the European Commission’s ability to police the digital world. With the World Wide Web is growing daily, more users are relying on online intermediaries to buy, sell, and browse. In order to remain a leading player on the e-commerce market, the commission must find a solution that protects consumer interests while promoting competition. If the commission finds itself unable to do so, the future of e-commerce in Europe is at risk.
