Every day, the world generates about 2.5 quintillion bytes of data (2.5 Exabyte), according to IBM. However, access to these assets is not so balanced. Major market players centralize most of this volume of information, creating an economy completely dependent on the flow that runs inside these digital fiefs that we can call. The monopolization of these feudal lords in society is extremely dangerous, which can harm not only greater market competitiveness but also their ability to stand out and innovate amidst continuous growth.
This term, already coined for a long time, refers to the ancient landowners who directed people to work in their planting chains. Today, the premise remains, changing the lands to the digital environment, with their owners represented by large companies holding user data, including Google, Meta, Amazon, and many others.
In these business models, assets harvested from users are strategically exploited aiming for some source of income – creating a profit dynamic based on the control of this continuous access and access to information-generating sources in front of digital services, the same concerning problem that also occurred in ancient feudalism.
There are few digital feudal lords who centralize most of these assets, generating an inevitable dependence on them. After all, without these digital accesses, we would not be able to communicate on various social networks, conduct in-depth research on global search engines, and have real-time access to information about everything happening worldwide.
We are monopolized by the exclusive economy that runs within these digital fiefdoms, and faced with any internal changes that occur, we are left to adapt to these alterations so that we can continue to have access to what happens in these environments. An inevitable dependence on the ‘servants’ (users) who do not see any other choice in a constantly connected universe.
To the rest of the market, the damages of this monopolization are even greater. This is because costs end up being much higher to have access to a piece of this digital fiefdom due to this centralization in the hands of a few, requiring a greater financial investment for greater online visibility. However, not all companies can have an effective economic management that allows for this type of financial direction.
Investments in digital marketing, according to estimates from WebFX, show a huge variation, ranging from $50.00 to $6,000.00 per month. For small and medium-sized companies, it is very difficult to constantly direct such large amounts, leading them to lose space to competitors who have better management and structuring in this sense, consequently losing their innovative capacity to stand out.
The security of this information is also not as guaranteed as one might think, another negative point that needs to be highlighted. In 2024, for example, about 2,500 Google documents were leaked, containing details on how the company collects, stores, and uses user information, including clicks and Chrome browsing data. Even with so many laws aimed at ensuring the implementation of security systems, what we see in practice is still quite deficient.
Those who understand the rules of the game can benefit from this dynamic and lead the matches in their favor. However, not everyone will have the same equality of access and investment opportunities in these resources to get a larger piece of land in these environments. Something quite difficult indeed for those who do not have a better opportunity in this conglomerate.
Each platform, with its respective feudal lord, establishes its own rules for those interested in enjoying their lands, a diversity that needs better regulation so that access is not so restricted to those with greater financial resources for it. Along with this, something even more crucial is the education and training of professionals so they may deeply understand how this dynamic works, and how to protect themselves to avoid leakages or thefts risks that unfortunately frequent the world.
It is necessary to adopt awareness measures to prevent these feudal lords from gaining more power. The more players understand these rules and know how to use them to their advantage, the greater the chances of enjoying the benefits that connectivity brings to the market’s competitive potential.
Alexandre Pierro is a master in management and innovation engineering, bachelor in mechanical engineering, nuclear physics, and specialist in management at PALAS, a pioneering consultancy in innovation ISO in Latin America.
