Internet interoperability: Threatening the monopolies of Big Tech

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  Quantumrun Foresight
• March 19, 2022

Insight summary

A new era for the internet is on the horizon as legislation aims to break up the control that major tech companies have over online platforms, opening doors for smaller companies to compete. Interoperability, achieved through standardized protocols, is at the core of this transformation, but it also raises concerns about privacy and security, especially for smaller companies with less cybersecurity infrastructure. The long-term implications are far-reaching, including lower costs for building new platforms, increased cross-border opportunities, greater fintech competition, stronger privacy standards, and potential challenges in cybersecurity and environmental sustainability.

Internet interoperability context

In 2022, an antitrust legislation targeting Big Tech passed through the House of Representatives, which may spell a new era for the internet. This legislation aims to break up the tech companies that currently control the major platforms on the internet, giving smaller companies a chance to compete with them. The goal is to reduce the concentration of power and influence that a few large companies hold, promoting fairness and opportunity for all players in the digital space.

The current structure of the Internet enables tech companies to operate large platforms that control the flow of information and interaction on the Internet. The wide reach of select platforms and the amount of financial and technological resources invested into them ensures that competition from new entrants is minimized, fostering a serious antitrust issue. Critics argue that the dominance of a few major platforms may stifle creativity and limit opportunities for new businesses to thrive.

Interoperability aims to break the monopolistic power that Big Tech companies have online by creating functionality to allow platform users to easily delete or migrate their user data from one platform to another. Legislating such functionality intends to level the playing field for small players and make it possible for them to compete more effectively. While many large tech companies oppose this legislation, it has found bipartisan support in the US. The idea is that by making it easier for users to switch between platforms, competition will be encouraged, and consumers will benefit from more choices and better services. 

Disruptive impact

Interoperability legislation is intended to foster competition on the internet through interoperability. The question is: How might this play out? One possible way to achieve interoperability is through standardized protocols that make it easy to design systems and platforms that can talk to each other. Mandating that companies rely on standardized protocols instead of letting them use proprietary systems can allow for better interoperability. This trend can enhance the ability for different platforms to work together, potentially leading to more diverse services and products for consumers.

However, there may be privacy concerns. As of right now, companies can enforce a consistent standard of security. Interoperability opens the door to cooperation with other systems, which may result in less security since smaller companies may not have the same level of cybersecurity infrastructure as larger tech companies. Governments and regulatory bodies may need to carefully consider these risks and implement measures to ensure that the push for interoperability does not compromise user privacy or security. This could include setting minimum security standards or providing support to smaller companies to enhance their cybersecurity capabilities.

By breaking down barriers between platforms, companies of all sizes may find it easier to collaborate and create new solutions. For example, a small startup could partner with a larger platform to offer specialized services, without the technical hurdles that currently exist. This trend could lead to a more dynamic and responsive online marketplace, where businesses are able to adapt and respond to consumer needs more quickly. It may also encourage a culture of collaboration and openness, where companies see the value in working together rather than in isolation.

Implications of Internet interoperability

Wider implications of internet interoperability may include:

• Lowering the costs of building and scaling new online platforms, increasing the quantity and variety of platforms over time.


• Similar interoperability legislation spreading around the world, leading to more cross-border interoperability opportunities for non-US companies.


• The acceleration of Open Banking legislation worldwide that will spur greater fintech competition with established banks.


• The development of stronger privacy standards for personal data in response to potential security concerns, leading to enhanced protection for consumers.


• Encouraging collaboration between different industries and sectors, leading to the creation of new business models and partnerships.


• Potential reduction in overall cybersecurity due to the need to comply with common standards, leading to increased vulnerability to cyberattacks.


• The possibility of smaller companies struggling to meet the new standards, leading to a potential widening of the gap between large and small tech firms.


• A shift in labor demands towards specialized skills in interoperability and standardization.


• Environmental concerns related to the rapid growth of new platforms and increased energy consumption, leading to potential challenges in sustainability and resource management.

Questions to consider

• The requirements of interoperability may lead to greater privacy concerns. What measures do you believe are appropriate to keep personal data safe?


• Which platform do you believe will see the most competition from newcomers?


• Do you believe the current legislation offers enough opportunity for small players to compete online?