The Rise of Big Tech and Its Global Impact

Once the realm of financial and industrial giants, the global economy is now dominated by Big Tech. Companies like Facebook, Apple, Amazon, Netflix, and Google (collectively known as FAANG) boast a staggering market value of over $7 trillion, embedding themselves into the daily lives of billions.

A Growing Influence that Requires Oversight

With more than 37% of the world's population using Facebook and 35% relying on Google, these corporations have become so powerful that they're often deemed 'too big to fail.' Their immense reach raises critical questions about the lack of regulation and accountability associated with their practices.

Political Manipulation: The Dark Side of Tech's Ascendance

Big Tech's influence first made headlines during the Arab Spring, later highlighted by its role in the U.S. elections tainted by foreign interference. The recent political landscape in the U.S. has led to a reduction in governance standards, as seen with Meta, which just dismantled its fact-checking team.

AI: A Double-Edged Sword of Innovation and Misinformation

As tech companies delve deeper into artificial intelligence, the risk of spreading misinformation rises. Companies like Apple and Disney are facing increasing pressure to disclose their AI strategies, especially after a 2022 SEC ruling mandated transparency.

Shareholder Rights at Risk: A Call for Accountability

The governance structure within these tech giants often sidelined shareholders. Snapchat famously went public without granting voting rights, while Meta is heavily controlled by a single shareholder. Such practices show how founders can dominate decision-making, dismissing the voices of investors.

The Fight for Change: Protests Against Governance Practices

The International Corporate Governance Network, representing a whopping $77 trillion in assets, has consistently pushed back against dual-class share structures. Despite some legal challenges, like the Shareholder Commons lawsuit against Meta, meaningful changes remain elusive.

Need for Globally Accepted Regulations: The Road Ahead

As Big Tech grows more powerful, the urgent need for a standardized governance framework is clear. We have examples to follow, such as the Basel Committee's banking standards and the OECD's guidelines, which could serve as blueprints for robust corporate governance in the tech sector.

AI on Board: A New Frontier in Governance Challenges

The increasing inclusion of AI in corporate governance raises complex legal and ethical questions that we are not yet equipped to handle. With only a fraction of S&P 500 companies addressing AI oversight adequately, new regulations are necessary.

Conclusion: The Way Forward for Big Tech

The OECD seems well-suited to lead the conversation on global governance standards. However, bridging the gap between American, Chinese, and European interests presents significant challenges as their views on Big Tech's role in the economy remain misaligned.