Two and a half centuries after American colonies fought for independence from British rule, the tables have turned dramatically. Today, Britain finds itself in a position of economic subservience to American tech giants - companies so dominant they function as modern-day monopolies.
The Rise of American Digital Hegemony
The current era of US tech supremacy began in the 2000s, when Britain and many other nations became almost entirely dependent on a handful of American platforms including Google, Facebook and Amazon. This period was characterised by widespread optimism about the internet as a democratising force that would enrich everyone.
Unlike China, which deliberately blocked foreign sites to build its own digital ecosystem, Western nations embraced American technology under free trade principles. The UK followed globalisation logic, focusing on its strengths in finance and creative industries while relying on US tech rather than developing domestic alternatives.
Why Tech Platforms Differ From Ordinary Trade
The conventional wisdom of specialisation breaks down when applied to digital platforms. There's a crucial difference between importing fine wines and depending on technologies that underpin the entire online economy.
Burgundies don't extract value from every commercial transaction or collect lucrative data, whereas platforms like Google and Amazon function as essential market infrastructure. A more accurate analogy would be allowing a foreign company to build toll roads across Britain, charging whatever they like for their use.
Britain's AI Surrender and Missed Opportunities
We're now witnessing the same pattern repeat with artificial intelligence. During a recent state visit, Britain proudly celebrated investments by Google and Microsoft in datacentres - yet these represent the bottom rung of the AI economy, simply channelling profits back to US headquarters.
In an alternative timeline, Britain could have become a true AI leader. US researchers were once behind their British and French counterparts. However, in a move neither Washington nor Beijing would have permitted, Britain allowed the sale of most key AI assets and talent over the past decade, with DeepMind's purchase by Google being the most prominent example.
What remains of Britain's AI strategy amounts to supplying electricity and land for American-owned datacentres - akin to being invited to a party only to serve drinks.
The Path Forward: Regulation and Cooperation
If tech platforms resemble toll roads, the logical response would be limiting their take through fee caps or charges for data extraction. The European Union has made strides with its Digital Markets Act, which regulates how dominant platforms treat dependent businesses.
For Britain to resist this economic colonisation, it could partner with the European Union and Japan to develop a joint strategy that forces platforms to support local businesses while nurturing alternatives to mature US technologies.
Instead, Britain and other nations disadvantaged by American dominance have been slow to adapt, clinging to 1990s economic theories despite overwhelming evidence they no longer serve national interests in the digital age.
