Paradox of regulation

9 January 2025

EU regulation on big tech gets a lot of hate. Criticism, fines, memes.

It’s framed as a fight: regulators versus tech giants. David versus Goliath.

But here’s the paradox. Regulation, meant to level the playing field, does the opposite.

Big tech wins from regulation.

They have the teams, the money, and the patience to navigate it. Startups don’t. Regulation that’s meant to rein in big companies ends up crushing smaller ones. Fewer competitors. Less risk for big tech.

So why does big tech pretend to hate it? Why the lobbying, the public outrage, the campaigns?

Because regulation is a fashion item. A political statement.

Its intentions are often good, even necessary. But its unintended consequences are stronger.

Regulation creates barriers. And big tech knows how to climb them.

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