Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 2025

Don’t expect post-Brexit Britain to match EU’s fight against big tech

Don’t expect post-Brexit Britain to match EU’s fight against big tech

Profits for America’s tech firms continue to soar and there are few signs they will face tougher rules

If anyone needed convincing that the pandemic would turbo-charge sales at America’s largest tech firms and send profits soaring, this week’s quarterly results defied the doubters.

Apple, Microsoft and Google owner Alphabet have reported profits for the most recent three-month period of such stratospheric proportions they put the banks, entertainment firms and healthcare businesses in the shade. Facebook and Amazon are poised to report their own stellar performances before the weekend.

Alphabet doubled its profits from the same period last year. Microsoft reported a 21% increase in revenues and the Windows software maker took its stock market valuation to $2tn (£1.4tn), a figure that is now heading towards the UK’s annual income, or GDP, of $2.8tn.

With size comes power. Much of the focus recently has been on the use of tax havens by tech firms to avoid paying corporation tax on their super-profits.

A scheme put together by the Organisation for Economic Development & Cooperation (OECD) to make digital services companies pay a minimum 15% level of corporation tax is a welcome development.

It should be in place by 2023, though a final agreement later this year among the G20 countries and a wider group of more than 130 from every region is not set in stone after a rearguard action by low-tax countries including Ireland and Hungary.

What is less discussed is how the tech giants use their size and lobbying power to dominate markets and lock in high prices.

Economists in the US have fretted about the high cost of monopoly capitalism as it now manifests itself in the digital sphere.

US policymakers of every stripe have weighed up the benefits of hosting world beating corporations – ones that are in part successful because they enjoy a light-touch system of regulation – against the high cost of their dominance at home where consumers inevitably pay some sort of price for that corporate success.

In the twilight years of the Obama presidency, it seemed that political flag waving by Democrats and Republicans for Silicon Valley might be over. That was until China became Congress’s chief enemy and it was clear the Russians were using cyberwarfare as a political weapon.

These days the large digital firms seem to have the same kind of power as cold war defence contractors, which could name their price when asked to provide sophisticated support to government departments.

The EU has made clear that anti-trust laws – ones that seek to restrict monopoly power and promote the rights of consumers – come first during long battles with Microsoft and Google. In April, the European Commission accused its latest target Apple of gouging app developers by charging a 30% fee for selling through its online store, a fee it said was passed on to consumers in higher prices.

There were other monopolistic tactics, said the EU, including “a dominant position” in the distribution of music streaming apps.

Brexit means Britain could take a similar or even tougher stand. After all, consumers in the UK suffer the same higher prices as those in the EU and US.

Earlier this month the government announced plans for a Digital Markets Unit that will “require large digital businesses to follow new rules of acceptable behaviour”. But it appears from the scope of the new watchdog that staff will be supplied with microscopes to watch for relatively minor breaches.

Google and the rest will most likely continue to set the agenda, unencumbered by tough rules, except that is, in the EU.

Forging a lone path


Driving through Sheffield, it is difficult to miss the mammoth Sheffield Forgemasters factory. Sitting astride the river Don, the business has more than 200 years of history and still qualifies, despite its near demise and resurrection after the financial crash of 2008, as Britain’s last remaining independent steel business. The mill has survived, supporting 700 jobs, but without the cash needed to modernise its future was in doubt.

After much hand wringing, the business is to be bought by the MoD, which has decided that it needs a domestic manufacturer for the high-grade steel parts in nuclear submarines and other vital military kit.

It is a bold move for a Tory government and could be viewed as a rejection by Boris Johnson of the privatising zeal of his predecessors.

But the MoD says there is an aim to “eventually return the business to the private sector”. Johnson has, meanwhile, rejected nationalising the struggling Liberty Steel business despite owner Sanjeev Gupta putting two factories up for sale.

In truth, this nationalisation looks like a one-off.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×