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— CH. 1 · ORIGINS AND EVOLUTION —

Big Tech

~6 min read · Ch. 1 of 6
6 sections
  • In 2013, economist Jim Cramer coined the acronym FANG to describe Facebook, Amazon, Netflix, and Google. He called these companies "totally dominant in their markets" and claimed they were poised to take a bite out of declining sectors. The term Big Tech began appearing around that same year as economists speculated that deregulation would lead to concentrated market power. Before this moment, IBM, Microsoft, and Apple dominated the worldwide information technology industry during the late 20th century. The dot-com bubble wiped out most Nasdaq Composite stock market index stocks before surviving startups expanded their market share. Following Russian interference in the 2016 United States elections, access to large amounts of data allowed tech companies to influence users. This event made the concept of Big Tech popular among critics who compared it to Big Oil following the 1970s energy crisis. Congress attempted to regulate those industries just as it later targeted Big Tobacco. By 2024, the largest six tech companies in the United States included Alphabet, Amazon, Apple, Meta, Microsoft, and Nvidia. These entities also became the largest companies globally by market capitalization.

  • Alphabet reached a market capitalization of $1 trillion for the first time in January 2020. It became the fourth U.S. company to achieve this milestone after Google operated several world-famous internet services. As of 2024, Google provided online advertising through Google Ads and web search via Google Search. YouTube served video sharing while Gmail handled email and Chrome acted as a web browser. Android powered mobile operating systems and Waze offered web mapping alongside Google Maps. Cloud storage came through Google Drive while its cloud computing division ranked third globally behind Amazon Web Services and Microsoft Azure. Advertising accounted for 82% of Google's revenue in 2021. Amazon held 38% of e-commerce market share in the United States as of 2024. Its Amazon Web Services division generated the majority of operating profit since 2014. Apple designed electronics including the iPhone, Mac computers, and Apple Watch. iOS held 27% global market share while Android captured 72%. Meta Platforms owned Facebook, Instagram, Threads, and WhatsApp. Advertising made up 96.69% of total revenue in 2024. Microsoft developed Windows, Office suites, and Teams for business communication. Nvidia became the dominant supplier of hardware used by artificial intelligence systems. By late 2024, Nvidia surpassed both Amazon and Alphabet in market value.

  • Chinese tech companies Baidu, Alibaba, Tencent, and Xiaomi collectively form BATX groups often seen as competitors to American giants. South Korean conglomerate Samsung and Taiwanese chip manufacturer TSMC also appear within Big Tech discussions. In 2023, the Magnificent Seven accounted for approximately two thirds of S&P 500 gains. Over one year, these seven delivered a groundbreaking 107% return on investment credited to AI boom and expected interest rate cuts. Deutsche Bank stated that combined valuation reached $13 trillion by February 2024. This figure exceeded stock market valuations in every country except Japan, China, and the United States. Morgan Stanley noted that the group accounted for 31% of S&P 500 holdings by mid-2024. Some analysts warned extreme concentration could trigger downturns similar to the dot-com crash or 1929 collapse. On the 5th of August 2024, the Magnificent Seven briefly lost $1 trillion before quickly recovering. Nikos Smyrnaios argued globalization allowed Big Tech companies to minimize tax burdens and pay foreign workers lower wages. Without regulation, Google, Apple, and Facebook earned over 20% profit margins in 2014. The complexity of IT made competition law ineffective resulting in industry self-regulation.

  • Antitrust investigations began in the late 1990s leading to the first major case against Microsoft in 2001. The U.S. government accused Microsoft of illegally maintaining monopoly position in PC markets. District court ruled actions constituted monopolization under Sherman Antitrust Act while appeals court affirmed most judgments. Department of Justice announced the 6th of September 2001 it would not seek breakup but instead seek lesser penalties if Microsoft agreed to share APIs with third parties. Judge Kollar-Kotelly accepted proposed settlement the 1st of November 2002 and appeals court approved the 30th of June 2004. In 2017, Elizabeth Warren criticized Big Tech for offering free services to remain popular. House Judiciary Subcommittee investigated Big Tech in June 2020 publishing report January 2021 concluding Amazon, Apple, Google, and Meta operated anticompetitively. President Joe Biden signed Executive Order 14036 the 9th of July 2021 establishing policy to scrutinize mergers involving Big Tech companies. District Court Judge Amit Mehta ruled August 2024 that Google held monopoly in online search violating Section 2 of Sherman Act. Eastern Virginia Judge Leonie Brinkema ruled April 2025 that Google held monopoly in advertising technology violating Sections 1 and 2. European Union charged Apple the 24th of June 2024 with breaching Digital Markets Act potentially resulting in significant fine. Final decision expected March 2025.

  • Following Russian interference in the 2016 United States elections, Facebook faced criticism for failing to curb disinformation. The Facebook-Cambridge Analytica data scandal targeted users for political propaganda based on online activity monitored without consent. Senate Intelligence Committee report 2019 criticized Facebook and Twitter for failing to stop misinformation spread. During COVID-19 pandemic, Big Tech allowed health-related false advertising despite representatives Frank Pallone, Mike Doyle, and Jan Schakowsky calling industry self-regulation failed. Human Rights Watch criticized primarily Facebook for allowing misinformation to spread in developing countries. In September 2024 Federal Trade Commission released report finding user data practices made people vulnerable to identity theft stalking unlawful discrimination emotional distress mental health issues social stigma and reputational harm. Associated Press reported September 2025 leaked documents showed U.S. companies developed technology enabling mass surveillance internet censorship human rights abuses in China including against Uyghur and Tibetan populations through partnerships with PRC law enforcement military and defense contractors. Companies identified included Microsoft Nvidia Amazon Web Services IBM Thermo Fisher Scientific Dell Cisco Seagate Hewlett Packard Enterprise Oracle Intel Motorola Western Digital Esri Broadcom and VMware. Progressives alleged runaway profit-taking concentration of wealth while conservatives claimed liberal bias.

Common questions

What companies are included in Big Tech as of 2024?

The largest six tech companies in the United States by 2024 were Alphabet, Amazon, Apple, Meta, Microsoft, and Nvidia. These entities also became the largest companies globally by market capitalization.

When did Jim Cramer coin the acronym FANG for big technology companies?

Economist Jim Cramer coined the acronym FANG to describe Facebook, Amazon, Netflix, and Google in 2013. He called these companies totally dominant in their markets and claimed they were poised to take a bite out of declining sectors.

Why did antitrust investigations begin against Microsoft in the late 1990s?

Antitrust investigations began in the late 1990s leading to the first major case against Microsoft in 2001 because the U.S. government accused it of illegally maintaining monopoly position in PC markets. District court ruled actions constituted monopolization under Sherman Antitrust Act while appeals court affirmed most judgments.

How much profit margin did Google, Apple, and Facebook earn without regulation in 2014?

Without regulation, Google, Apple, and Facebook earned over 20% profit margins in 2014. The complexity of IT made competition law ineffective resulting in industry self-regulation.

What happened on the 5th of August 2024 regarding the Magnificent Seven stock market value?

On the 5th of August 2024, the Magnificent Seven briefly lost $1 trillion before quickly recovering. Deutsche Bank stated that combined valuation reached $13 trillion by February 2024 which exceeded stock market valuations in every country except Japan, China, and the United States.

All sources

243 references cited across the entry

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