Close menu




October 10th, 2022 | 12:45 CEST

Opinion dictatorship of big tech like PayPal: The government must do its homework

  • CDBC
  • Digitization
  • Money
  • Banking
Photo credits: pixabay.com

Anyone who operates at PayPal, Meta or other tech giants has to play by the rules - so far, it's normal. But what happens when market power and regulatory demands cross borders? Just recently, PayPal published a policy that would have fined users USD 2,500 if they spread misinformation. After an outcry, the payment service provider rowed back and now claims that the policy was published "by mistake." So it was all just a coincidence?

time to read: 3 minutes | Author: Nico Popp
ISIN: PAYPAL HDGS INC.DL-_0001 | US70450Y1038

Table of contents:


    For years, tech companies have been criticized for their growing influence. Both the US government and the EU are keeping an eye on the companies and have already initiated antitrust proceedings in the past. But is that enough? Can't state institutions react and intervene wherever the claim to power of "big tech" obviously oversteps the mark? Facebook, Alphabet and Microsoft have long been involved in research, acting as conference partners and awarding millions in funding. Researchers have to actively apply and ultimately the respective tech company, such as Meta, decides who gets funded. That this procedure indirectly tempts researchers to align their research goals at least somewhat with the interests of Big Tech is obvious: "What goes around comes around."

    Big Tech silences even scientists

    While a little creativity in applying for funding is commonplace in the scientific community, and the agenda of Meta, Alphabet and Co. reads innocuously on the surface ("transparency" or "fairness" or "privacy"), the lines between well-intentioned funding and concrete influence are more blurred than one might think. Even before PayPal threatened users who "spread misinformation" with a USD 2,500 fine, which the corporation has since retracted, users with disagreeable opinions were removed from the Venmo platform, which belongs to PayPal. Among them is evolutionary biologist Colin Wright, who critically follows and scientifically comments on the activities of the LGBTQIA+ community. In a video on YouTube Wright sums up the case under the title, "PayPal blocked me for statements about basic biology".

    While classical media pursue the claim to present debates and factual issues objectively and it belongs to the journalistic basics to let all parties involved in an issue have their say, companies like PayPal and other Big Tech companies can deprive unpopular opinions of public access with just a few measures. Such opinions are sometimes under pressure anyway: evolutionary biologist Wright reports private messages full of agreement from scientific colleagues, but who would be afraid to publicly like or comment on tweets or other social media posts. Public discourse that can contribute to the objective formation of opinion hardly takes place anymore and is further hampered by the activities of Big Tech. Individual users even report account blockings simply because usage guidelines were violated in the course of private mail traffic.

    Digital currency as an instrument of power: Central banks consider CBDC

    As if the influence of Meta, PayPal or Alphabet on the web were not already great enough, companies from the industry are constantly pushing new business models. Amazon, for example, has long been considered a serious player in the field of autonomous driving, and Meta even wants to come up with its own digital currency. Such plans had already been launched when the Company was still operating under the name "Facebook". The more extensive the activities of big tech, the more dangerous it becomes when companies intervene in the formation of public opinion - there is another drastic difference between a blocked account on social media and exclusion from payment transactions.

    This is probably also why state actors are increasingly taking aim at digital currencies and planning their own projects. So-called central bank digital currencies (CBDC for short) are under discussion in various currency areas. This is a digital currency that is issued by traditional central banks and has the same exchange properties as "normal" money. This means that it is also fungible with cash and fiat money. The currency area that launches its digital central bank currency first is likely to have advantages in the race for supremacy as the world's reserve currency. At the same time, states are unlikely to want to hand over their monopoly on money to private companies, which have already been dragging their feet for some time.

    States must strengthen pluralism of opinion

    But a CBDC that is knitted too closely with a hot needle also harbors risks. Citizens are already increasingly uncomfortable with centralized projects that lack transparency and potentially undermine the privacy of their users. To remain credible, lawmakers must protect opinions and public discourse and prevent parallel legal spaces. There should be no difference between the policies of a tech company and the parallel legislation of religious communities and other groups. Only when the state categorically protects individual freedom and prevents any qualified weighing of opinions does it retain its legitimacy to implement large-scale projects, such as a CBDC.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Armin Schulz on November 11th, 2025 | 07:10 CET

    Steady returns in uncertain times: The yield strategies of Deutsche Telekom, RE Royalties, and Allianz

    • royalties
    • Investments
    • dividends
    • Telecommunications
    • Banking

    In uncertain times, investors long for stability. A smart strategy focuses on companies that not only grow but also pay a reliable dividend. This passive income provides valuable support, independent of daily market fluctuations, while also protecting against loss of purchasing power. We take a closer look at three established companies that deliver on this promise: Deutsche Telekom, RE Royalties, and Allianz.

    Read

    Commented by André Will-Laudien on November 7th, 2025 | 07:50 CET

    Fact check: After the correction comes the next rally! Ups and downs for Almonty, Aixtron, and Deutsche Pfandbriefbank

    • Mining
    • Tungsten
    • Banking
    • semiconductor
    • Technology

    Zigzag! Buy, sell, buy again! What wild volatility we are seeing on the trading board! Palantir delivers dream numbers, exceeding analysts' estimates by 10%, only to drop 20% after a brief rally. Traders have a saying for this: "Buy the rumor, sell the fact." Indeed, this kind of market behavior is often seen around earnings releases. In the case of Almonty, the stock surged an explosive 700% in just eight months, only to lose 40% in the subsequent correction. For flexible investors, it is worth taking a closer look and not losing sight of the fundamentals. Here are a few ideas for rocking the boat or tucking stocks away à la Kostolany!

    Read

    Commented by André Will-Laudien on November 5th, 2025 | 07:15 CET

    Money or gold – Where can investors expect another 150% return? ESG-compliant with RE Royalties, Deutsche Bank, PayPal, or Fiserv?

    • Sustainability
    • Money
    • Digitization
    • Technology
    • Payments
    • Gold
    • ESG

    Gold continues to fascinate as a scarce and value-preserving asset. However, its extraction often comes with significant environmental and social challenges, making the label "sustainable" difficult to apply. Money, on the other hand, especially in the form of cash or digital currency, is intangible and based on trust; in modern times, its sustainability is defined by its use in ESG-compliant investments. And these are diverse! With its "Green Deal," the EU is driving a comprehensive transformation and directing capital toward sustainable technologies and projects through support programs and ESG regulations. This is particularly relevant for institutional investors, who are increasingly required to consider climate risks and social responsibility. Much of this capital flows into green infrastructure and technological innovation. Private investors, meanwhile, have green investments on their radar, though the primary focus here remains on returns. Let's dive into the world of financiers.

    Read