Trump’s second inauguration was quite the event; from Biden’s farewell, to Trump’s second presidential oath, to a flurry of executive orders as part of a shock-and-awe effort. “America is “back” was the bold new message on the White House website. Or, in Trump’s own words: “The golden age of America” had arrived. But what struck me most was an event that happened earlier that day.
Top business leaders including Facebook owner Mark Zuckerberg, Google CEO Sundar Pichai, and Tesla and X boss Elon Musk, all gathered in the Capitol to watch the inauguration ceremony in their front row prime seats. Their presence was a clear display of their growing influence in politics, and they made no attempt to hide it.
A new oligarchy in the making?
Just days before leaving office, Biden had already warned of the rise of a new tech-industrial complex in his final White House address. He echoed Dwight Eisenhower, who warned for the rise of military-industrial complex in the 1960’s¹. In an industrial complex, businesses develop close ties with governments departments, potentially leading to a dangerous concentration of wealth and power among a few individuals². Such an oligarchy can pose great risks to a democracy. So, what is the impact that business leaders like Elon Musk and Zuckerberg have with their Big Tech companies on democratic societies?
In a democracy, power lies with the people. It thrives when people can freely express themselves and make decisions based on reliable information. To protect a democracy from derailing, various mechanisms such as the separation of power, the rule of law, and freedom of speech are put in place.
Research suggests that in emerging democracies, social media accelerates democratization by increasing access to information and encouraging political participation. However, in established democracies, it has the opposite effect: it contributes to a decline in political trust³. While many factors play a role in this, I want to focus on two: algorithms and the spread of misinformation.
Algorithms and free speech
At first glance, social media seems to promote free speech, even amplifying it by giving people a new podium to share their stories. The Arab Spring, for example, demonstrated how these platforms can give a voice to the people. During the Arab Spring people rose up to national governments to stop corruption, and poverty4 .
However, the goal of algorithms in established democracies is not to foster a healthy public debate. Instead, these algorithms prioritize engagement and sensationalism. There are two ways to do this. The first way is showing users content similar to what they’ve previously engaged with. The other option is showing you extreme, often emotionally charged content. Both options make it more likely that you will stay longer on the platform. While many assume that all posts have an equal chance of being seen, the reality is quite different. Tech companies decide what content reaches the audiences. Their algorithms decide which opinions are being shared through a megaphone, and which are being muffled by duct tape.
Why do social media companies do this? Simple – you are the product. Social media companies primarily make money through advertisements. Without engagement, there is no data mining and advertising. The longer you stay online, the more profit they generate. But by exposing users to the most extreme content, social media companies create echo chambers and a polarized environment where division thrives. The more people are exposed to similar content through algorithms, the stronger their beliefs become, limiting their exposure to opposing viewpoints and worsening public discourse.
Dangerous misinformation
Another major issue is the avalanche of misinformation and disinformation flooding social media, crumbling the supply of accurate, independent journalism. This is especially concerning as more people use these platforms for news consumption. In South Africa, 71% of the adults use social media as a source of news. In Indonesia, this figure is 60%, in the US 48%, and in the Netherlands 37%5. Social media companies have little interest in whether the content on their platform is true or false. Unlike traditional news, they have little incentive to fact-check or ensure information accuracy: their goal is not to create a place for a healthy public discourse. Moderating and fact-checking are expensive and only raise operating costs. With AI-generated content on the rise, distinguishing truth from falsehood is becoming even harder. The growing tension between commercial interests and accurate journalism is a serious threat to democracy. When people cannot trust the information they receive, democratic decision-making suffers.
Addressing both issues is crucial to protect democracies. If these problems go unpunished, democracies will suffer. We’ve already seen the rise of illiberal democracies around the world. The leaders of these regimes dismantle democratic mechanisms step by step by spreading doubt why these mechanisms exist in the first place. Ultimately, illiberal democracies are already halfway to authoritarianism regimes.
Is there then nothing we can do?
Although it may seem that way, social media companies are not untouchable. Consider the Brazilian Supreme Court’s decision to take down X after Musk refused to appoint a legal representative in the country 6. Ultimately, the state will prevail over a corporation. A corporation is an entity that exists only because it is recognized by law. It only has rights through this specific regulation framework. Those who control the law can hold corporations accountable with their jurisdiction7. The Big Tech bosses know this. That’s why they place such great reliance on their ability to influence public policy and lawmaking. This is their ultimately their goal. The stakes are high, as the biggest tech companies are now competing to become a powerhouse in AI.
Imposing effective regulation on unwilling platforms requires strong political will. We need leaders ready to take on the fight against the Big Tech companies. Europe is leading this charge. Their Digital Services Act (DSA) shows how Big Tech companies can be held accountable. It is time to act now.
Author: Stef Straver
Visual: Yan Nesterenko