Small business is looking at ways to be able to compete with big tech innovation and dominance. While Apple, Google, Amazon and Facebook all started as tiny operations in garages and dorm rooms, it’s hard to imagine any of them being displaced by new startups today. Big Tech not only plays an enormous role in their own markets, but also in reaching consumers, and the ability for small businesses to access today’s necessities, such as cloud storage, payment processors and app stores. Big Tech also has the ability to drive consumers to their own products over smaller rivals’ products through data analysis, algorithms and contracts. In addition, Big Tech innovation also has an enormous advantage over small business, as venture capitalists won’t fund areas where the big players have an edge or could easily squash a startup or decide to buy it on the cheap in order to build out the business themselves – calling it the “kill zone.”
Some executives of small companies that rely on Big Tech have testified against the Big Tech giants for the congressional record of how they have harmed their businesses for years. For example, Patrick Spence, the CEO of Sonos, alleged that Google stole his company’s intellectual property and leveraged its dominance to crush Sonos core product as Google entered the smart speaker market. David Heinemeier Hansson, the co-founder and chief technology officer of Basecamp, held Google accountable for requiring companies to buy their way to the top of its powerful search results. He testified that the internet has been “colonized by a handful of big tech companies,” and urged it’s time for Congress to intervene.
A simple change in a Big Tech’s algorithm can wipe out smaller companies that are reliant on tech companies’ platforms or even emerging industries, and Facebook made changes to its algorithm in 2018 which hit some viral publishers’ revenues hard. According to some experts, they report that many consumers feel that breaking up major tech companies into smaller ones would make the market more competitive, be better for small businesses, and likely improve innovation. Here is an opinion piece we found of interest relating to small business and their fight against Big Tech dominance in the marketplace.
Small-business group asks Congress to prioritize antitrust bill in lame duck
In an opinion piece “Small-business group asks Congress to prioritize antitrust bill in lame duck” for The Hill, Rebecca Klar, technology policy reporter, reports on a coalition of small businesses urging congressional leaders to prioritize an antitrust bill targeting tech giants during the lame-duck session. According to a letter sent to leadership in the House and Senate, the coalition asked lawmakers to make the bipartisan American Innovation and Choice Online Act a “top priority” in the session closing out the year. The bill would aim to limit tech giants like Amazon, Meta, Apple and Google from preferring their own services, according to the letter organized by Small Business Rising. The coalition added that the legislation represents “an unprecedented opportunity to start leveling the playing field for our small, independent businesses, and the window to do so is rapidly closing.”
“Small businesses are the backbone of America’s economic dynamism and the vitality of our local communities. Now is the moment for policymakers to advance legislation that will safeguard the right for independent businesses to compete and serve the needs of their communities,” the coalition added. Read the full article on The Hill.
Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.
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