The limits of Pedro Sánchez's power struggle with Big Tech

MadridThe GAFAM companies have become the emperors of the new world. Each of the initials stands for Google (also known as Alphabet), Apple, Facebook (now Meta), Amazon, and Microsoft, in that order. They are the American tech giants, where they have grown under the protection of successive governments, particularly those of Donald Trump. In fact, across the Atlantic, they are referred to as the "magnificent seven," a list that includes Nvidia and Tesla. Their power extends beyond the economic sphere—as was evident at Trump's inauguration in 2025—something that has not gone unnoticed by some governments, including Spain's. Indeed, Pedro Sánchez began the year speaking of a "tech elite" and urging the European Union to "stand up to it." He initiated a challenge to the major tech companies, a challenge he has revived eleven months later.

The Spanish Prime Minister has not only promised to open an investigation against Meta—the parent company of Facebook and Instagram, which generated €90 million in revenue in Spain alone last year—for alleged privacy violations affecting millions of users, but also intends to promote measures during the first half of 2022 to combat hate speech, privacy breaches, and the lack of protection for minors. "The internet is a failed state," the Prime Minister asserted this week, focusing on the unchecked nature of the digital world and social media.

In fact, just two weeks ago, Sánchez issued a warning to these large corporations. He did so during the presentation of a report on children's exposure in the digital environment. "We all play a role here," Sánchez warned, appealing directly to these corporations: "Including the big tech companies. We must demand, and we will demand, that they do their part [...] When we talk to them, it's all talk. They tell us they're not looking out for us, but then nothing. There are cases of cyberbullying. This isn't about business; this is about a violation of human rights."

For now, the Spanish government hasn't revealed its plans, although the junior partner, Sumar, is already pushing for progress on tax pressure. The party, led by the Minister of Labor, Yolanda Díaz, has demanded a "Trump tax" from the PSOE so that these large American tech companies pay taxes in Spain. The announcement, which comes on the eve of a new regional election cycle, hasn't been detailed. although it would involve increasing the so-called "Google tax" of 3% approved in 2021.

European discussion

But what is the central government's capacity to influence these large corporations? "Most interactions [with these companies] take place through European institutions [...], which are corporations that don't operate in a single state, but rather on a European scale," explains Joan Calzada, a professor at the UB School of Economics, who adds that Europe has been a "pioneer" in their oversight. Member states typically adopt European regulations, which have become increasingly stringent over time, both in terms of preventing a monopoly by these tech companies—that is, preventing an abuse of dominant position—and in controlling their content. The latest example is the technology legislation that came into force just over a year ago, the AI Act, which, among other things, aimed to combat disinformation. However, due to pressure from Trump and American tech companies, expectations have ultimately been dashed. In Spain, the Competition Authority imposed a €194 million fine on Amazon and Apple for restricting competition.

"If it's stricter, it's a matter that will be decided at the European level, where it's true that progress is harder to achieve, but [a member state] can generate a social debate around it and about the need to increase its oversight," Calzada indicates. For the economist, the Spanish government could play the Teresa Ribera card, the European Commission's top Competition Commissioner, responsible for ensuring these corporations comply with digital market regulations. "She has a commission that allows her to be confrontational," Calzada acknowledges. The former minister under Pedro Sánchez has already warned on more than one occasion that she will not be lenient with tech companies. However, her position, and also that of Sánchez and other countries like France, clashes with the position of Nordic countries, such as Germany and the Netherlands, which are much more reluctant to implement strict controls.

More access for citizens

The UB professor suggests that one way to begin paving the way would be to "facilitate" citizens' access to spaces where they can voice their grievances with these corporations. "Complaining to a company like this is very costly [...] Facilitating interaction is a step forward, and there are measures that could be implemented to achieve greater collective action. But since we don't yet know what the government wants, we don't know what instrument is needed," he reflects.

However, Pedro Sánchez's tone has not always been the same. The Spanish government has met on more than one occasion with executives from some big techStarting with Google and Microsoft, they are seeking investment at a time when Spain has allocated, and will continue to allocate, a significant portion of public investment to the digitalization of the economy.