Bringing Big Tech To Heel By Having Small Tech; Was DEI A ZIRP?
Bringing Big Tech To Heel By Having Small Tech; Was DEI A ZIRP?
Tech regulation proponents in the US Senate recently met with their EU counterparts to discuss the success of European regulations in bringing Big Tech under control. One key difference between the US and Europe is how data privacy regulations are treated. While Europe sees them as “human rights” cases, the US considers them under “consumer protection,” giving more weight to economic growth. This has led to a significant decrease in tech investments in Europe. Additionally, companies are facing a choice between maintaining their diversity, equity, and inclusion (DEI) efforts or facing potential lawsuits. Despite some blowback, most companies have stood by their DEI programs.
The Impact of Tech Regulation and Decreased Investments
European tech companies have seen a decline in investments, with the entire tech sector’s market cap dropping from $3.1 trillion to $2.7 trillion in 2022. This decrease is attributed to tech investors pulling back from European investments. Companies like Apple, Microsoft, Amazon, and Google are now surpassing the market cap of all European tech companies combined. The difference in approach to tech regulation and data privacy between Europe and the US has played a role in this shift.
Challenges of Diversity, Equity, and Inclusion (DEI) Programs
Companies are facing challenges in maintaining their DEI efforts due to potential lawsuits and pressure from conservative groups. Some companies, like Amazon and Starbucks, are already facing suits over their diversity requirements for contractors. While most companies have chosen to stand by their DEI programs, there is a fragile progress in this area. Recent marketing campaigns by Target and Bud Light targeting LGBTQ+ and younger, diverse customers faced blowback, leading to backtracking and pulling related content.
