In the 90’s we talked about paradigm shifts – those changes big enough to move the pieces along the board a few more squares. Today the big word in tech is ‘Disruption’ – turn an industry on its head using innovative tech, deliver great solutions and make unimaginable profits with the IPO.
The problem comes when the companies are too successful. Take UBER, YouTube and Airbnb, all without a doubt disruptors and all coming under the eye of local and federal regulators around the world.
Recently YouTube has come under fire (rightly so) for running its client’s ads alongside unsuitable video material. YouTube’s claim that they are just a ‘tech company providing a platform’ doesn’t wash with most major advertisers who are calling for YouTube to ‘take responsibility for its content.’
We’ve also seen it with UBER who have run issues with local municipalities and labor disputes in their efforts to provide the ground-breaking ride-share service.
The latest company to come under fire is Airbnb who, in South Florida, is facing many interesting issues: http://www.bizjournals.com/southflorida/news/2017/03/22/fight-between-local-officials-and-airbnb-heats-up.html?mc_cid=085f23dc2d&mc_eid=4d66c30d68
One example that’s been with us for a while is PayPal. In the beginning, they we all about the tech and creating a new way of paying for goods and services on line. But the regulators soon realized that PayPal is in a sense a banking organization and tried to regulate them in the same way as other banks. PayPal eventually won a decision that they are not a bank and therefore should not be regulated like one.
