Two and a half centuries ago, American colonists protested against British rule due to restrictive policies like the tea monopoly. Conversely, the situation has evolved; British reliance on major American technology companies, such as Google and Amazon, raises questions about economic sovereignty. This situation is emblematic of a broader trend where countries increasingly depend on dominant tech firms, prompting calls for a coordinated international response.
The dominance of US tech firms emerged in the 2000s, with the UK becoming almost entirely dependent on American platforms for online services. Initially, the internet was viewed as a democratizing force, with the belief that it would enable individuals to monetize their skills easily. However, as time progressed, it became evident that the resulting wealth primarily benefited these American corporations, leading to significant market concentration.
Unlike China, which chose to block foreign platforms and develop its own digital ecosystem, the UK and many European nations opted for an open market approach. This strategy led to a reliance on American technology instead of fostering local industries. While the logic of free trade supports specialization in local strengths, this model has caused nations to overlook the critical role that key technological infrastructure plays in the economy.
Recent developments in artificial intelligence highlight this issue further, with significant investments in data centers—essentially the foundational infrastructure of AI—flowing back to US companies. This raises concerns about whether local economies are receiving equitable benefits from their relationships with these multinationals.
Despite recognizing the potential issues, few countries have taken concrete steps to limit the power of these tech giants. Initiatives like the EU’s Digital Markets Act represent attempts to regulate dominant players, but challenges remain. For the UK, a collaborative strategy with the European Union and Japan could present an alternative path, potentially fostering local alternatives to established US technologies. However, a strategic reassessment is necessary to balance reliance on American firms and ensure economic resilience.
Source: https://www.theguardian.com/books/2025/nov/23/has-britain-become-an-economic-colony