Bringing Big Tech to Heel: How Small Tech is Shaking Up the Industry while DEI Faces Scrutiny

Bringing Big Tech To Heel By Having Small Tech; Was DEI A ZIRP?

Tech regulation proponents in the US Senate traveled to Belgium last month to discuss their EU counterparts’ success in “bringing Big Tech to heel.”

European data privacy regulations are treated as “human rights” cases, while in America, they fall under “consumer protection.”

Tech investors have decreased European outlays, resulting in a drop in the value of the European tech sector.

Instacart and Klaviyo, despite facing down rounds and questions of viability, are among the biggest homegrown European tech companies.

Companies faced a choice after the Supreme Court overturned affirmative action for college admissions programs – maintain their DEI efforts or bow to pressure from conservative groups.

Marketers have largely stuck with their DEI programs, although some big brands faced blowback and backtracked on their diversity-focused campaigns.

The Writers Guild of America suspended its strike after reaching a tentative agreement with the studios.

Both the writers and actors’ guilds are primarily focused on revenue sharing from streaming services.

European Tech Regulation vs. American Approach

Tech regulation proponents in the US Senate recently traveled to Belgium to learn from their EU counterparts’ success in “bringing Big Tech to heel.” The key difference between the two approaches lies in how data privacy regulations are treated. In Europe, these regulations are treated as “human rights” cases, while in America, they fall under the umbrella of “consumer protection.” Additionally, the American system heavily considers economic growth, which can impact the regulation of tech companies.

Decrease in European Tech Sector Value

The European tech sector has experienced a significant decrease in value as tech investors have decreased their investments. Over the past two years, the entire public and private European tech sector has dropped from a peak of $3.1 trillion to $2.7 trillion in 2022. This decline in value has been partly attributed to the rise of tech giants like Apple, Microsoft, Amazon, and Google, whose market caps have surpassed those of European tech companies combined.

DEI Programs and Fragile Progress

Companies faced a choice following the Supreme Court’s overturning of affirmative action for college admissions programs. They could either maintain their diversity, equity, and inclusion (DEI) efforts or succumb to pressure from conservative groups. Despite potential legal challenges, many companies have chosen to continue their DEI programs. However, progress in this area remains fragile, as evidenced by backlash faced by big brands like Target and Bud Light for their marketing campaigns targeting LGBTQ+ and younger, more diverse customers.

Writers Guild Strike and Revenue Sharing

The Writers Guild of America recently suspended its strike after reaching a tentative agreement with the studios. The focus of the negotiations primarily revolved around revenue sharing from streaming services. Notably, neither the writers nor the actors’ guilds made any claim to a portion of the ad revenue generated by streaming services. Instead, their focus was on transitioning the share of subscription and syndication revenue earmarked for writers from linear TV to streaming subscriptions.

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