The danger of digital feudalism

Every day, the world generates about 2.5 quintillion data (2.5 Exabyte), according to IBM. But access to these assets is not so balanced. Large market players centralize most of this volume of information, generating an economy completely dependent on the flow that runs within these what we can call digital fiefdoms. The monopolization of these feudal lords in society is extremely dangerous, which can harm not only greater market competitiveness, but their ability to stand out and innovation in the face of continuous growth.

This term, already coined a long time ago, refers to the former owners of the land that directed people to work in their planting chains. Today, the premise remains, changing the land to the digital environment, and their owners are represented by large companies that hold user data, including Google, Meta, Amazon and many others.

In these business models, the assets harvested from users are strategically exploited for some source of income & creating a profit dynamic based on the domain of this continuous access and access to information sources in the face of digital services, even a worrying problem that also occurred in the old feudalism.

Few digital feudal lords 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 the most diverse social networks, conduct in-depth research in global search engines, and have access to real-time information about everything that happens worldwide.

We are monopolized by the exclusive economy that runs within these digital fiefdoms and, in the face of any changes that occur internally, we have to adapt to these changes, so that we continue to have access to what occurs in these environments. An inevitable dependence on the” “ervos (users) who do not see themselves facing another possibility of choice in front of a constantly connected universe.

To the rest of the market, the losses of this monopolization are even greater. This is because, in order for them to have access to a piece of this digital fiefdom, the costs end up being much higher due to this centralization in the hands of a few, requiring greater financial investment in favor of greater online visibility. However, not all companies can have an effective economic management that allows this type of financial direction.

The investments in digital marketing, according to estimates of WebFX, have a huge variation, ranging from US$ 50.00 to US$ 6,000.00 per month. For small and medium-sized companies, it is very difficult to be able to direct such amounts constantly, which makes them lose space for competitors who have better management and structuring in this sense and, consequently, who lose their innovative ability to stand out. 

The security of this information is also not so guaranteed, another negative point that needs to be highlighted. In 2024, as an example, about 2,500 Google documents were leaked, of which were details about how the company collects, stores and uses user information, including clicks and Chrome navigation bases. Even in the face of so many laws aimed at ensuring the implementation of security systems, which is seen in practice, is still quite flawed.

Who understands the rule of the game, can benefit from this dynamic and lead the matches in their favor. However, not everyone will have the same equal access and investment opportunities in these resources, so that they get a larger piece of land in these environments. Something, in fact, quite difficult for those who can not get a better opportunity in this conglomerate.

Each platform, with its respective feudal lord, establishes its own standards for those interested in enjoying their lands, a diversity that needs to be better regulated so that their access is not so restricted to those who have greater financial resources for this. Along with this, something even more paramount is the education and training of professionals to understand, in depth, how this dynamic works, and how to protect themselves to avoid risks of leaks or thefts that, unfortunately, are frequent around the world.

It is necessary to adopt awareness measures that prevent these feudal lords from gaining ever greater powers. The more players understand these rules and know how to use them in their favor, the greater the chances of enjoying these benefits that connectivity brings to the competitive potential of the market.

Alexandre Pierro he holds a master's degree in management and engineering of innovation, a bachelor's degree in mechanical engineering, nuclear physics and a management specialist from PALAS, a pioneer consultancy in ISO innovation in Latin America.