COVID-19 pandemic has created a situation where big technological companies grow bigger; while smaller companies crumble according to the Competition and Tariff Commission (CTC).
The competition regulatory authority says global technological companies giants have been able to weather the crisis very well as shown by the rise in their share prices.
CTC says, “They (tech giants) have also been less impacted by lockdown restrictions as they had large cash reserves.”
“Many of their smaller competitors were already struggling, and will likely either exit the market or be acquired.”
CTC also says there are growing concerns about the abuse of market power by key digital platforms the extent of their control of data and the harm not only to consumers but also to society.
“Technology companies have penetrated many aspects of people’s lifestyles, from shopping to social interaction,” CTC says.
“Dominant digital platforms have also expanded into other related businesses, with the objective of accessing more data and increasing their market.”
“There are growing concerns about the abuse of market power by key digital platforms, the extent of their control of data and the harm not only to consumers but also society.” the authority says.
CTC also says the increase in online retail, education and advertising will be a huge boost for big tech and they tend to gain from this trend due to their increased importance and economic power.
“This can also be linked to the recent WhatsApp’s decision for automatic linking of Facebook and WhatsApp’s account, changing the privacy policy through linking data from WhatsApp and Facebook.”
