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:

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 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 André Will-Laudien on September 22nd, 2023 | 07:20 CEST

    Recalculation! These are the bare figures: TUI, Saturn Oil + Gas, Deutsche Bank - Buy prices non-stop!

    • Mining
    • Oil
    • travel
    • Investments
    • Banking

    Companies do not always have good figures in their baggage. Analysts listen very carefully to the words of those in charge. Often, it is only a minor sentence that changes entire valuations. TUI is slowly approaching pre-COVID figures. Saturn Oil & Gas must backtrack slightly because of substantial forest fires in Alberta, and Deutsche Bank aims to finalize the Postbank project in 2023. All three stocks offer good buying opportunities because the long-term prospects are quite convincing.


    Commented by Juliane Zielonka on August 31st, 2023 | 09:05 CEST

    Strategic turning points in Chemicals, Automotive and Energy: Investment opportunities with Defense Metals, Volkswagen and BASF

    • Mining
    • RareEarths
    • Electromobility
    • Digitization

    Rare earths are becoming increasingly important due to digitalization, especially for the electronics industry. Defense Metals, a company from Canada, is focusing on the extraction of rare earths at the Wicheeda project. Geotechnical investigations are progressing rapidly in order to develop the valuable raw material. Volkswagen reports an impressive 17.9% increase in car sales in July. Nevertheless, the Company is lowering its annual sales forecast due to growing competition in China. Germany's energy transition is affecting major corporations like BASF. The US company Cheniere Energy will supply BASF with liquefied gas in the future. To adapt to the new market conditions, BASF has successfully completed the spin-off of its mobile exhaust catalyst and precious metal services businesses. The new site surprises.


    Commented by Nico Popp on August 21st, 2023 | 08:00 CEST

    China's shadow banks send first shock waves: Deutsche Bank, Allianz, Viva Gold

    • Mining
    • Gold
    • Banking
    • Investments

    To many market observers, China was considered the true powerhouse of financial markets. Even when US growth was reaching its limits due to crises, the Chinese continued scoring points with growth rates well above the 5% mark. But the situation has changed. China is increasingly becoming a problem case. The Chinese real estate market is in a predicament. The situation surrounding project developer Country Garden could, much like in the case with Evergrande before, make waves internationally and put German financial institutions in a difficult situation.