Leading U.S. technology firms, which have surged and cemented their place at the top of global markets in recent years, particularly with the rapid expansion of social media platforms and artificial intelligence, have intensified debate over what some economists call "technofeudalism."
Technofeudalism refers to a system likened to medieval feudal structures, but with power concentrated in a few companies that dominate digital infrastructure.
Under this model, firms such as Google, Amazon, Meta and Apple are described as the "feudal lords" of the technology age, exercising economic and social influence once associated with governments.
Economist and former Greek Finance Minister Yanis Varoufakis popularized the term, arguing that users have become akin to digital serfs, handing over data and content in exchange for access to nominally free platforms.
He published the book titled "Technofeudalism: What Killed Capitalism." While it was welcomed and sparked much interest, some also found it to be, in a way, "critical" of tech companies.
"Jeff (Bezos, the owner of Amazon) doesn’t produce capital, he argues. He charges rent. Which isn’t capitalism, it’s feudalism. And us? We’re the serfs. 'Cloud serfs,'" The Guardian wrote late in 2023 in an interview with the Greek about the book.
The term once again popped up after the leaders of America's most influential tech firms gathered at the inauguration of U.S. President Donald Trump this January, demonstrating that wealth and power were once "shoulder to shoulder."
The concept has drawn growing criticism as a handful of firms maintain control over vast amounts of data and key sectors ranging from advertising to entertainment, news, e-commerce and online services.
According to the MarketCap.com website, the rise of these companies accelerated over the past decade, placing technology firms at the top of global rankings.
Some argue that the so-called Magnificent 7 stocks are holding together the entire U.S. market, and lately, that without AI, the U.S. economy would be in a recession.
Chipmaker Nvidia leads with a $4.58 trillion market cap, driven by demand for its AI chips and graphics processing units (GPUs) used in advanced and consumer systems.
Apple follows with a $4 trillion valuation, with revenue heavily dependent on App Store downloads and subscription services.
Microsoft ranks third globally, with a market value of $3.78 trillion, deriving revenue from platforms built on its Windows operating system and its social media site LinkedIn.
Google, long known for its search engine, now sits in fourth place with a $3.5 trillion valuation, supported by its AI capabilities and ability to process massive amounts of data. Chrome is used by 73.2% of internet users, while 90% use Google as their search engine, according to web traffic analytics firm Statcounter.
The company faces scrutiny over anti-competitive practices, particularly in the U.S., where regulators say it dominates multiple digital sectors from advertising to communications.
Amazon ranks fifth with a $2.35 trillion market cap, supported by Amazon Web Services (AWS), which provides cloud services to governments and private institutions worldwide.
Meta Platforms stands sixth at $1.5 trillion. Like Google, it has faced criticism over its allegedly unfair algorithms. Meta's Facebook has 3.07 billion monthly active users, while Instagram and WhatsApp each have about 3 billion.
With the three largest social media platforms under its umbrella, Meta has also been the target of multiple monopoly lawsuits.