Prediction: Big tech companies will likely continue to lose global market share as politics restrict their access.
Google, Twitter, Facebook, and other tech leaders have threatened to pull operations from Hong Kong in the face of anti-doxxing legislation. Doxxing is the publication of private information to enable harassment by others. In the face of this regulation, global tech companies could continue to lose market share to political conflicts, especially as the US and China continue their “tech cold war.”
Privacy, please — China has cracked down on privacy laws amid political strife in the region. Hong Kong proposed a bill that bans doxxing after it received 1,036 doxxing complaints in 2020. The Asia Internet Coalition that represents tech companies claims that vague language in the bill means any form of information sharing could be criminalized. Now, tech giants and their employees could be fined up to about $128,000 and prison time if doxxing posts are not removed.
The problem — A survey of the American Chamber of Commerce found that 42% of companies considered or planned to leave Hong Kong. This means smaller players who play by local rules could benefit and fill the void. However, markets that shut themselves off also risk the loss of foreign direct investments and cross-border flow of ideas and innovation.