In July 2023, India’s central government clashed with a global tech giant when New Delhi ordered the removal of several hundred posts from X (formerly Twitter), citing concerns over disinformation and national security. The posts, which were linked to separatist movements and incendiary content about India’s domestic policies, led the government to demand action under the country’s stringent IT laws. X’s owner, Elon Musk, however, challenged the government’s decision, arguing it violated free speech. Instead of complying fully, Musk’s company initially ignored the request, triggering a standoff between the world’s largest democracy and one of the most powerful tech platforms.
After a few weeks of legal battles and public uproar, X took down some but not all of the posts, effectively defying the Indian government’s authority. The incident highlighted the growing tension between states and powerful tech companies. As these platforms become integral to the functioning of societies, companies increasingly wield more influence than even governments, making it difficult for states to enforce their sovereignty over the digital realm. This dynamic is not limited to India. All around the world, the balance of power has shifted from governments to tech giants, fueled by society’s dependence on their platforms, the ambiguous legal frameworks they operate in, and the unique nature of emerging technologies. As tech executives continue to make unilateral decisions that affect millions, the question of how democratic states can reclaim their authority looms larger than ever.
All That Power
Tech companies are continually pushing the boundaries of innovation, but governments have not kept pace. In countries like the United States, key regulations governing technology—such as the Communication Decency Act and the Digital Millennium Copyright Act—were passed in the 1990s, long before smartphones or social media even existed. Since then, tech firms have evolved from simply creating products to controlling entire systems that were traditionally managed by the state, including critical digital infrastructure. Companies like Microsoft, Amazon, and Google now provide essential services that governments once monopolized, from cybersecurity and communication to energy and even intelligence gathering.
This newfound dominance has turned tech executives into powerful figures. Elon Musk, with his ventures spanning from social media to satellite communications, is just one example of how much influence a single individual can wield. Other industry leaders, such as Meta’s Mark Zuckerberg and Microsoft’s Satya Nadella, also shape public policy discussions, routinely appearing before lawmakers to argue for their interests. As political figures rely more on these corporate leaders, they relinquish their responsibility to oversee and regulate them effectively.
When Tech Firms Rule
Tech companies’ growing authority extends to controlling critical infrastructure, often with little oversight. For instance, they own and manage the undersea cables that handle 99% of the world’s internet traffic, a key resource that powers global communication, financial systems, and sensitive governmental operations. Yet, states have allowed private corporations to dominate this space, leading to security risks and increased corporate control over essential public services.
This power extends into government bureaucracies as well. In countries like the Netherlands, governments have used privately developed algorithms to manage public services, sometimes with disastrous results. In 2013, Dutch tax authorities used algorithmic tools to identify fraudulent taxpayers, but the flawed system disproportionately targeted families based on racial profiling, leading to thousands of wrongful accusations. The political fallout eventually led to the resignation of the Dutch government, yet the tech companies involved faced minimal consequences.
Tech’s Influence on Warfare
Even in matters of national defense, tech companies now hold unprecedented leverage. In Ukraine, satellite networks like Starlink play a crucial role in communications and intelligence, making companies like Musk’s SpaceX indispensable for wartime operations. Similarly, tech firms have become central to cyber warfare, with companies like Amazon and Google actively engaging in efforts to counter state-sponsored cyberattacks. This has raised questions about the extent to which private corporations should influence the outcomes of international conflicts.
Spyware companies, such as Israel’s NSO Group, have taken this a step further, selling surveillance technology to both democracies and authoritarian regimes alike. As tech companies become more involved in state-level conflicts, they assume roles that once belonged solely to governments, complicating the global geopolitical landscape.
Regaining Control
Despite these alarming trends, governments still have the power to rein in the growing influence of tech companies—if they choose to act. Policymakers must start by updating their legal frameworks to account for the complexities of today’s digital age. This could involve revising trade secrecy laws to ensure greater transparency, particularly when tech systems are used in government operations. Researchers should be granted access to the data and algorithms that tech firms use, allowing for independent oversight and informed public debates on regulation.
Moreover, states need to build internal technical expertise to counterbalance the power of corporate lobbyists. In the United States, reviving institutions like the Office of Technology Assessment could help lawmakers better understand emerging technologies and guide policy decisions. Similar initiatives could be launched in other democracies, ensuring that governments are not at the mercy of tech companies when it comes to critical decisions about national security, privacy, and the economy.
Enforcement of existing laws must also become a priority. Governments often pass regulations without ensuring they are properly enforced, leaving tech companies free to operate with minimal accountability. By introducing more stringent oversight mechanisms and leveraging their purchasing power, states can compel companies to adhere to higher standards. Public procurement could be used as a tool to reward companies that prioritize cybersecurity and ethical practices, while those that violate laws or fail to protect consumer data should be excluded from government contracts.
Finally, democratic states must take decisive action against tech firms that pose a direct threat to public welfare. In 2021, the U.S. Department of Commerce blacklisted the NSO Group, limiting its ability to sell spyware. While this move came late, it marked a significant step in holding such companies accountable. Similar actions should be taken against firms that undermine democratic principles or engage in unethical practices.
The Way Forward
Reversing the power shift from states to tech companies will require a comprehensive strategy. Beyond regulation, states must invest in creating public digital infrastructure and fostering a culture of tech accountability. By doing so, they can ensure that the future of technology serves the public good rather than the interests of a few powerful corporations.
Whenever tech executives like Musk defy government orders, it is a reminder that states still have the power to take back control—if they are willing to act. The time to stop the corporate takeover of the digital world is now. Through bold reforms and strong leadership, governments can restore the balance of power and protect the integrity of democracy in the digital age.
