Former Greek Finance Minister Yanis Varoufakis warns that the TikTok ban controversy in the United States exposes a deeper issue: the concentration of power among tech platform owners who function as “techno-feudal lords” over social media users.
What Happened: “There is no stopping a form of economic activity which concentrates so much direct power in the hands of so few people, over our thoughts, our minds,” Varoufakis told ABC News, arguing that Meta Platforms Inc. META poses similar concerns as TikTok. “Do not fall into the trap of thinking that there is a good techno-feudal lord.”
Varoufakis is also a game theory expert who tried to use strategic brinkmanship to negotiate Greece's bailout during its 2015 financial crisis.
Varoufakis advocates for “interoperability” regulations that would allow users to transfer their followers between platforms, similar to phone number portability between carriers. This approach, he argues, “would reduce the switching costs and would deal a major blow at the exorbitant power of platform owners.”
His concerns come as major tech figures, including Tesla Inc. CEO Elon Musk and Meta’s Mark Zuckerberg, maintain close ties with political leadership. “What they want from a president — and they don’t give a damn whether it’s [Donald] Trump or anyone else — is to get the federal government off their back,” Varoufakis said.
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Why It Matters: The ongoing TikTok situation, which could force ByteDance into a joint venture worth up to $50 billion according to Wedbush Securities analyst Dan Ives, exemplifies this power dynamic. Potential buyers include Microsoft Corp. MSFT, Oracle Corp. ORCL Chairman Larry Ellison, and a consortium led by YouTube star MrBeast offering over $20 billion.
Meanwhile, Meta is capitalizing on TikTok’s uncertainty by offering creators up to $50,000 monthly to shift to Instagram Reels, highlighting the platform owners’ ability to reshape the social media landscape. The company has invested over $2 billion in creator payments in 2024 alone.
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