Since the 90s, competition authorities like the European Commission have been getting tougher on Big Tech. Fines have been coming down on tech giants like Apple, Google, Intel, and Microsoft. Some of these cases have resulted in fines in the billions. But who is really benefitting from the success of these?
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Since the 90s, competition authorities like the European Commission have been getting tougher on Big Tech. Fines have been coming down on tech giants like Apple, Google, Intel, and Microsoft. Some of these cases have resulted in fines in the billions. But who is really benefitting from the success of these?
Harbour Litigation Funding explains that authorities are employing creative theories under which to charge Big Tech companies with harm. Antitrust claims or accusations of misused data have led to policy positions intent on limiting the power of tech companies. But how does that help consumers seek justice?
What’s important to remember about the fines levied against tech companies is that those who were purportedly damaged aren’t seeing compensation. When consumers sue a company and an award is levied, plaintiffs receive a share as compensation for their losses. When government agencies pursue big tech, consumers generally see nothing.
What happens to the billions being levied against these companies? Theoretically, those who were impacted deserve remuneration. In practice, governments generally keep these monies, arguing that payouts eventually reach citizens through social programs and other government spending.
Class actions are still the best way for wronged consumers to gain compensation. Without an opt-out class action regime, however, this isn’t always feasible. Increasingly though, UK courts are seeking out more creative approaches that allow consumers proper redress. Litigation funding could be an essential part of this.
Ultimately, what’s needed is a combination of a reasonable framework for collective redress, as well as aggressive enforcement of existing laws governing tech companies. Without that, competition authority enforcement is little more than an attempt at soapboxing. It’s essential that there be a reasonable path for wronged consumers to get the compensation they deserve. Some say such changes are coming. But how much longer will consumers have to wait?
