José Ferraz : The dictatorship of megacompanies

Still on the subject addressed in my last article, for Portuguese entrepreneurs, whose companies are more than 99% SMEs, the challenge of the applicability of AI in our organizations is one more, among many, that we have to face in the short term. There will be a consensus that this challenge will bring us advantages in the medium term and that, among others, it will allow us to better and more quickly understand the functioning of our organizations and make them more efficient, understand the markets and anticipate trends, obtain timely information that allows us to recognize strengths and weaknesses, as well as to perceive more quickly the threats and opportunities that are emerging. Machine Learning, Artificial Neural Networks, Expert Systems, Computer Vision or NLP are AI tools, which I referred to in detail in the last article, and opportunities not to be missed.
It is also clear to me that it is mega-enterprises that are first using many of these tools, as their economic power allows it. These organizations are often an unavoidable threat to SMEs. A threat that silently, and without us realizing it, is taking on the lion’s share of the different markets, leaving SMEs and even many large companies an increasingly small space to carry out their business.
Mega-companies, which I call soulless and heartless businesses, whose owners often have no visible face, are mega-organizations spread across 5 continents. They generate megalomaniac profits, which they apply as and where they see fit, usually in tax havens, pay reduced taxes when compared to SMEs and consume all the quality labor that the market generates. They are often centers of great unproductivity, when compared to smaller ones, but that is disguised by their ability to manipulate prices and markets, either through monopolies or oligopolies, or through political and fiscal influence.
The significant power and influence of these large corporations over economic, social and political aspects of society can be translated quickly through the following 5 aspects:
Market concentration: some large companies dominate entire sectors, such as technology, pharmaceuticals and food. This concentration easily leads to monopolistic practices, making it difficult for new competitors to enter and often hindering the emergence of new players and with them fairer and more innovative competition.
Economic power: mega-companies have enormous financial resources, which allow them to influence global markets, set prices and shape consumption patterns.
Political influence: Large corporations often lobby governments to shape laws and regulations in their favor. They can also finance political campaigns and use economic power to obtain regulatory and fiscal advantages.
Social and environmental impact: often the activities of these companies have significant environmental and social consequences, pollution, exploitation of natural resources and poor working conditions. Despite this, its influence can make it difficult to implement stricter environmental protection and social rights policies, namely labor rights.
Control of information: as an example, and being known by all of us, technology companies, such as Google, Facebook or Amazon, have great control over the information and personal data of their customers and users, influencing behavior and public opinion.
In view of these facts, it remains for us to continue our daily struggle and hope that due regulation and supervision, which governments and international organizations can implement, and the strengthening of “anti-trust” regulations, which prevent and prohibit monopolistic practices, cartels, mergers and acquisitions and predatory practices that clearly undermine the correct and fair evolution of markets and competition between companies.
The consumers are the ones who pay, that is, all of us. It is also clear to me that support for small and medium-sized enterprises is increasingly necessary and fair, namely with regard to incentives for their development, policies to support and finance productive activities, innovation in products and processes, as well as access to new markets. Effective tax measures that allow the application of profits in strengthening equity are urgent.
Education and awareness, through information to the consumer population, about the negative impact of large corporations. Conscious and sustainable consumption is hardly compatible with those companies (note, for example, the resources and the amount of garbage that an order to Amazon generates).
Finally, we are facing an important and complex threat to deal with, both for SMEs and for consumers. The issue is complex and requires a multifaceted approach, involving governments, civil society and companies themselves.
With this article, I intend to raise awareness as much as possible. It is up to each of us to spread the word, denounce bad practices and demand, from those whom we pay to govern countries, to act accordingly.