StartArticlesThe danger of digital feudalism

The danger of digital feudalism

Daily, the world generates about 2.5 quintillion bytes of data (2.5 Exabytes), according to IBM. But access to these assets is not so balanced. Major market players centralize most of this volume of information, creating an economy entirely dependent on the flow within these entities we can call digital fiefdoms. The monopolization of these feudal lords in society is extremely dangerous, as it can harm not only greater market competitiveness but also their ability to stand out and innovate in the face of continuous growth.

This term, already coined some time ago, refers to the former landowners who directed people to work in their planting chains. Today, the premise remains the same, shifting lands to the digital environment, with their owners represented by large companies holding users' data, including Google, Meta, Amazon, and many others.

In these business models, the assets collected from users are strategically exploited to generate income—creating a profit dynamic based on controlling this continuous access and the sources of information generation regarding digital services, a concerning issue that also occurred in ancient feudalism.

There are few digital feudal lords who centralize most of these assets, creating an inevitable dependence on them. After all, without these digital accesses, we wouldn't be able to communicate on the most diverse social networks, conduct in-depth searches on global search engines, and have real-time access to information about everything happening worldwide.

We are monopolized by the exclusive economy that operates within these digital fiefdoms, and in the face of potential internal changes, all we can do is adapt to these alterations so that we continue to have access to what happens in these environments. An unavoidable dependence on "servants" (users) who see no other choice in a constantly connected universe.

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

Investments in digital marketing, according to WebFX estimates, 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 consistently allocate such large amounts, which causes them to lose ground to competitors with better management and structuring in this regard and, consequently, to lose their innovative capacity to stand out.

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

Those who understand the rules of the game can benefit from this dynamic and steer the matches in their favor. However, not everyone will have the same access and investment opportunities in these resources, so they can obtain a larger piece of land in these environments. Something, indeed, quite difficult for those who cannot find a better opportunity within this conglomerate.

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

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

Alexander PierroHe holds a master's degree in management and engineering of innovation, a bachelor's degree in mechanical engineering, nuclear physics, and is a management specialist at PALAS, a pioneering consultancy in ISO innovation in Latin America.

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