President Joe Biden has warned the United States about the “real dangers” of tech leaders. The address comes at a time when concerns about tech industry concentration have reached unprecedented levels.
The outgoing president made his final public address from the White House’s Oval Office this week, and he used his speech to discuss misinformation and “an oligarchy” in the US. This historic speech marks one of the most direct confrontations between a sitting president and the tech industry.
“Today, an oligarchy is taking shape in America of extreme wealth, power, and influence that literally threatens our entire democracy, our basic rights and freedoms, and a fair shot for everyone to get ahead,” he said. Studies show that the top five tech companies now control over 80% of digital market share.
The 82-year-old politician referenced warnings from President Dwight Eisenhower about a “disastrous rise of misplaced power” in the military-industrial complex”. Eisenhower’s famous 1961 farewell address has often been cited as a prescient warning about concentrated institutional power.
Biden added: “Six decades later, I’m equally concerned about the potential rise of a tech industrial complex that could pose real dangers for our country as well.” Recent research indicates that tech industry consolidation has accelerated, with the largest companies acquiring over 400 smaller firms in the past decade.
Although he praised US tech leadership for changing people’s lives for the better and continuing to innovation, he still voiced concerns. The global technology sector now represents over $5 trillion in market value, with American companies dominating the landscape.
He said “a dangerous concentration of power in the hands of a very few ultra-wealthy people” could have concerning implications “if their abuse of power is left unchecked”. Industry analysts note that the combined wealth of the top tech CEOs exceeds the GDP of many nations.
“Americans are being buried under an avalanche of misinformation and disinformation enabling the abuse of power,” he continued. Studies indicate that misinformation spread on social media platforms has increased by 150% since 2020.
“The free press is crumbling. Editors are disappearing. Social media is giving up on fact-checking. The truth is smothered by lies told for power and for profit.” Recent data shows that over 2,000 local newsrooms have closed in the past five years.
Biden didn’t name anyone specifically in his address. However, his remarks come amid significant shifts in the tech industry landscape and its intersection with politics.
In recent weeks, X chief Elon Musk – a vocal supporter of President-elect Donald Trump – has a leadership role in the incoming administration. Musk’s companies now encompass social media, automotive, aerospace, and neural technology sectors.
And Meta boss Mark Zuckerberg – whose company owns the likes of Facebook, Instagram and Threads – recently confirmed his company is ditching third-party fact-checking across its platforms in the States. This decision affects content viewed by over 200 million American users daily.
The president’s warnings align with growing global concerns about tech industry concentration. The European Union has already implemented strict regulations through the Digital Markets Act, while several Asian nations are developing similar frameworks.
Industry experts note that the current tech landscape represents the highest concentration of corporate power in modern history. The top tech companies now employ more people than the entire U.S. auto industry did at its peak.
The speech has sparked renewed debate about potential regulatory measures, with some lawmakers calling for stricter antitrust enforcement and others advocating for new legislation to address digital market concentration.
Consumer advocacy groups have praised Biden’s address, citing mounting evidence that tech industry consolidation has led to reduced competition, higher prices for digital services, and decreased innovation in certain sectors.
The timing of Biden’s warning coincides with several pending antitrust cases against major tech companies, as regulators worldwide grapple with questions of market power and digital sovereignty in an increasingly connected world.
