Schaake, Marietje (2024). The Tech Coup – How to Save Democracy from Silicon Valley. Princeton University Press, 336 pages.
By Melanie Kolbe-Guyot
It is safe to say that probably no other book should more be on your reading list this year than Marietje Schaake’s 2024 “The Tech Coup – How to Save Democracy from Silicon Valley”. I recommend this book for four reasons.
First, as Elon Musk is prominently positioned in the Trump administration, at the head of the new so-called “Department of Government Efficiency” (DOGE), and as several tech leaders, ranging from Jeff Bezos to Mark Zuckerberg, quite literally stood right next to President Trump during his inauguration, it is clear that Big Tech is intimately intertwined with US American politics. This, as Marietje Schaake argues clearly in her book, is a threat to democracy – not just for the U.S. but for all other democratic nation states as well.
Second, Schaake goes beyond simply recounting Big Tech’s many scandals in order to point out the systematic nature of democratic erosion through certain technology companies’ outsized wealth, political clout, and deep reach into our digital lives. She reconstructs the extent of corporate capture by precisely tracing the means they use to undermine democratic processes, accountability, and ultimately, sovereignty.
Third, unlike many other books on the issue, her chapter on remedies lists solutions that are far more politically practical and are informed by her extensive experience in politics, notably, as a former member of the European Parliament.
Lastly, this also sets the book apart from others, as her point of view and experiences as a European politician in digital matters inform much of her book. This is a refreshing change from books that are often written by US technologists, academic researchers, and journalists. Precisely because she served as an elected representative, she attributes much of the outlined issues to politicians and governments who allow Big Tech to subvert the power of the state.
The main thrust of Schaake’s book is that the optimistic belief that technology inherently fosters democracy is flawed, hence laws are needed to both harness its potential for serving people and for preventing exploitation by companies and authoritarian leaders. Initially, technology and social media platforms were seen as democratizing forces, as demonstrated by events such as Iran’s Green Movement and the Arab Spring. However, there is growing disillusionment, because these technologies are also (quite effectively) used by authoritarian regimes for repression and social control. This is something that, as shown by the purchase and use of the Pegasus spyware by Western governments, democracies are not immune to.
Schaake argues that some technologies possess inherently antidemocratic traits, but that regulatory laws are lagging behind constant technological innovation. Democratic leaders remain willfully inactive, and governments have increasingly outsourced key functions to private companies, thus risking an erosion of agency and accountability, notably in national security and intelligence. Digitization is dominated by corporate interests, Schaake argues, as these companies focus on profit rather than societal good and often evade transparency under the veil of intellectual property claims. Ultimately, she warns, it is the shift of responsibility, accountability, and the power from democratic leaders to private entities that fuels this digital authoritarianism and, if it remains unchecked, will weaken democratic governance.
The book is structured as follows: In the first two chapters, Schaake focuses on the ways Big Tech asserts power and control over digital products and infrastructures. In Chapters 3, 4, and 5, she explores how elected officials are losing agency to technology enterprises, with companies increasingly taking on state functions and even challenging the concept of state sovereignty. In Chapter 6, she outlines the means tech companies use to avoid stricter regulations by shaping the public debate about technology governance. In Chapter 7, the author examines efforts by some governments to reclaim sovereignty, with notable differences between regimes. Finally, in Chapter 8, she delves into potential solutions.
The Power Imbalance between Big Tech and Government
In the first two chapters, Schaake addresses the significant power imbalance between Big Tech companies and government entities; this imbalance is a challenge to effectively regulating the industry.
In Chapter 1, Schaake provides an overview of not only the technological but also the intellectual foundations of today’s Big Tech industry and the reasons it is consequently difficult to regulate. Notably, she outlines the “growing asymmetry—of powers, information, and influence—between government and technology sectors [that] has undermined the ability of democratic lawmakers to understand the workings and potential harms of various technological applications” (p. 45). Not only do “[m]odern corporate tech leaders believe deeply that they can serve their users better than government can serve their citizens,” (p. 26), the significant dependence of governments on Big Tech for the provision of many now essential digital services has made these companies increasingly confident in eschewing attempts at regulation.
Tech companies often contend that regulation stifles innovation, yet -prevent access to corporate information, thus making it difficult to understand their inner workings. This has led politicians in both the U.S. and EU to adopt a hands-off approach, enabling the industry to self-regulate many aspects of public space. Schaake views this as a deliberate “abdication of responsibility” (p. 32) and a “devolution of power to software code and the ones coding it.” (p. 33). This trend, however, she argues, began already in the mid-1990s and has continued under both Republican and Democratic presidencies, resulting in exponentially greater power for Big Tech today.
In Chapter 2, Schaake expands on this power imbalance, highlighting companies’ control over “the stack,” i.e., the physical infrastructure for digital services such as submarine cables, data centers, and semiconductors. Private companies now establish and manage critical digital infrastructures, but the governance of these assets, especially on an international scale, remains unclear, partly due to companies’ intentional lack of transparency about their true interests. Particularly worrisome are her accounts of the use of shell companies through which Big Tech players conceal their active bids for building and managing such infrastructures.
Private Tech’s Threat to Democratic Sovereignty: The Consequences of Outsourcing Critical Public Functions
Across Chapters 3, 4, and 5, Schaake presents a cohesive argument that the increasing reliance on private technology companies, for managing critical state functions, poses a significant threat to democratic governance and state sovereignty.
In Chapter 3, she highlights how national security, especially cybersecurity, is increasingly managed by corporations. This is disconcerting for Schaake because it signifies a loss of governments’ ability to effectively ensure security by themselves, but also because it puts the authorities at an intelligence disadvantage. Through the proprietary nature of digital systems, tech companies hold a monopoly on information, which positions them (and not governments) often at the forefront of attributing attacks. At the same time, they are emerging increasingly also as actors on the international stage, but they are not signatories to international law. Furthermore, the devolution of responsibility for national security from state authorities to private companies, often raises responsibility and liability questions. “Companies believe state authorities have the formal duty to ensure national security, while government agencies increasingly rely on firms to build and secure software and digital infrastructures” (p. 83). But the entity ultimately responsible – and accountable – in case of failure, remains unclear; this is in large part also because, as she correctly observes, “cybersecurity is more of a business model than a policy model.” (p. 86)
In Chapter 4, Schaake outlines the diminishing agency of democratically elected leaders, as critical public functions are increasingly outsourced to private technology companies that have developed disruptive products, with minimal legal or regulatory safeguards. Technologies such as cryptocurrencies, facial recognition, and data analytics are increasingly handled by private enterprises that argue that they can execute government tasks more efficiently than government authorities. However, unlike state entities, these companies often operate with little transparency or accountability, which raises concerns about their effect on democratic principles. Schaake warns that important matters of public health and national security could soon be the domain of private firms, thus potentially leave government departments without the institutional memory or capability to address such issues independently. This shift not only diminishes governmental competence but also disenfranchises citizens, as they lack access to the information necessary to understand and engage with the systems governing them. She concludes that the rise of private entities in governance undermines democratic principles, as people become disenfranchised when they are unaware of the rules that govern them and lack mechanisms for holding companies accountable.
In Chapter 5, Schaake challenges the belief that technology naturally enhances democracy by showing how outsourcing critical processes to unreliable companies can erode electoral integrity and public trust. Similarly, she highlights the risk of entrusting vital infrastructure, (such as satellites) to private entities: This is exemplified by the case of Elon Musk’s Starlink, where a single company’s decision to shut off services (without any democratic process informing it) could cripple military operations and lead to real-world casualties. Such a potential political volatility of companies in control of critical infrastructure and processes poses a significant challenge to state sovereignty, not the least because these companies have long since entered the fray of foreign conflict (for example, in the current conflict between Ukraine and Russia), but because they are not bound by international standards or law. Corporate political volatility also threatens to undermine democracy, as tech companies often adhere to restrictive or non-democratic demands in economically important markets such as China, thus raising concerns that they could prioritize business interests over the greater good. Additionally, some even openly sell surveillance technology to autocratic regimes. Schaake cautions that “democracies have unwittingly ceded foreign policy decisions to companies who care first and foremost about their business interest” (p. 132), with potentially far-reaching implications.
Navigating Digital Sovereignty: Democratic Struggles and Authoritarian Control
In Chapters 6 and 7, Schaake explores the difficulty democratic societies face in regulating Big Tech and in reclaiming digital sovereignty, contrasted with authoritarian regimes’ decisive use of technology for maintaining control.
In Chapter 6, she examines how tech companies have shaped the public debate on technology governance by exploiting policymakers’ limited understanding of social media and modern technology. This she argues, has enabled Big Tech leaders to present regulation as harmful to innovation and technological progress, often by framing themselves as “heroes” and regulatory agencies as “villains” (p. 146). By equating a handful of companies such as Meta and Google with the Internet as a whole, they have succeeded in ultimately portraying regulation as an existential threat. Schaake refutes this argument by asserting that regulation can actually foster innovation and that democracies should prioritize balancing trade-offs, such as between greater regulation and greater innovation, in line with the rule of law. She also critiques how companies often portray democratic governments as incompetent compared to their own capabilities, by casting efforts to introduce regulation in terms of actions as only an autocratic government would undertake. Schaake argues that, in contrast, industry self-regulation efforts, such as oversight boards established by Meta, TikTok, and X (Twitter), have proven largely ineffective and instead have mainly served as “ethics washing.” Lastly, she is also skeptical about the rise of global industry initiatives due to their non-binding nature. Some corporations, such as Microsoft, have even strategically positioned themselves to actively influence international regulatory systems by presenting themselves as government partners.
In Chapter 7, Schaake explores the differing strategies of governments in reclaiming sovereignty in the digital age, contrasting the US model of prioritizing industry interests with other global approaches. The European Union, despite leading in regulatory innovation to curtail corporate power, struggles due to a lack of market power and the absence of major EU tech companies to rival American giants; and this is compounded by enforcement challenges. Conversely, the U.S. has primarily responded with regulatory initiatives only once national security threats were perceived, such as with TikTok, while adhering otherwise to a policy of “digital exceptionalism,” which leaves its own companies largely unregulated. This is something that likely will not be challenged any time soon due to political gridlock.
In stark contrast, China has effectively brought its tech companies (and foreign ones) into alignment with government directives, and it has succeeded in building up an extensive surveillance and repression apparatus. Notably, Chinese authorities have been willing to sacrifice economic gains in order to maintain political control, expecting tech companies to serve state interests. This is also substantially informed by China’s determination to use digital technology to bolster political power both domestically and internationally. India, in contrast, presents a complex case, balancing democratic and autocratic tendencies in their use and governance of technology. Although it has advanced in creating digital public infrastructures and regulation, it simultaneously experiences democratic erosion and uses technology to suppress the opposition, prioritizing control and efficiency over civil rights. For Schaake, probably the most important take-away from this comparison is that “[d]igitization has empowered authoritarian regimes, while democratic societies misguidedly continue to trust that free markets will lead to free societies” (p. 208).
Potential Solutions
In Chapter 8, Schaake explores arguably the most intriguing aspect of her book—various solutions that address the challenges posed by the overwhelming power of tech companies. Although she acknowledges at the outset that some of her proposals might not be entirely feasible, I found them to be quite realistic, particularly because many are drawn from existing regulatory frameworks in other sectors or regions. Her suggestions are also well-detailed; hence I have chosen to further elaborate on them here.
- Implementing the Precautionary Principle:
- Prevent products from reaching the market if innovations lack sufficient research or consensus on potential harms, in order to avoid issues rather than responding to them post-incident (‘precautionary principle’).
- Require companies to identify under-researched technologies before market release; require an expert board to evaluate whether a product falls under the precautionary principle.
- Grant access to these technologies to academic researchers for independent assessments.
- Curbing Anti-democratic Technologies:
- Ban both exports and imports of commercial spyware and outlaw data brokerage.
- Implement strict legal provisions and limitations on personal-data usage for facial recognition systems.
- Ban cryptocurrencies that are not minted by licensed organizations to ensure financial oversight.
- Making Transparency a Core Pillar of Public Interest:
- Clearly identify and watermark AI-generated media and strictly moderate AI-generated content.
- Make public the identities of investors in companies and platforms, along with their project bids, to enable oversight by public authorities and media scrutiny.
- Apply transparency and accountability laws to tech companies that execute government tasks (‘public accountability extension’); this also encompasses official communications via private messaging platforms.
- Promoting Government Leadership in Transparency and Tech Expertise:
- Demand accountability and transparency from software vendors in public procurement processes.
- Make investments in creating in-house technological expertise and establish an expert service to strengthen government capabilities.
- Building Accountability Mechanisms:
- Systematically identify important institutions that are “too big to fail” and subject them to additional requirements similar to the EU Digital Services Act.
- Establish independent institutions for arbitrating cyber incidents.
- Foster purposeful collaboration among democratic nations to create meaningful digital governance.
- Reinvigorating the Digital Public Sphere
- Develop measures to assess the reliance of public institutions on commercial technology.
- Create a public stack similar to digital public infrastructures, focusing on public interest.
- Formulate technology-neutral laws based on first principles with robust enforcement, instead of narrow, technology-specific laws.
- Enhance digital literacy to empower individuals in navigating the digital landscape.
Overall, underlying these proposals is a clear focus on reasserting democratic control and oversight over technological advancement, on the alignment of innovation with societal interests and democratic values, and on the advancement of regulation focused on harm-prevention and proactive governance. Recognizing the urgent need for such measures, Schaake argues in the conclusion that “[t]he risk of tyranny from corporate technology governance is real” (p. 252). She remains positive that we can change course and reverse the growing ‘tech coup’ by Big Tech. However, she stresses, this requires political will.
Critical Appraisal
This book is not the first to address the dangers of the unregulated tech industry for democracy and society. However, I believe it is the first to truly highlight the scale at which state capture by Big Tech corporate interests has already occurred. It is a powerful book precisely because it goes beyond recounting isolated instances of corporate misbehavior or failure. It illustrates the systematic nature of this phenomenon. Furthermore, Schaake does not overly indulge in theoretical or conceptual discussions; rather, she pragmatically explores, over several chapters, the many ways in which the outsized power of tech companies impacts people, markets, governance, security, and geopolitics.
As a European, she offers a unique perspective on American politics in a book primarily for an American audience. However, she also expresses criticism of the EU regulatory approach that she views as flawed. For example, she critiques the EU’s technology-specific regulatory approach for AI as outdated and unable to keep pace with rapid advancements while also failing to curb the influence of wealthy and powerful AI companies (p. 212).
I also appreciated that, although she criticizes Silicon Valley, she simultaneously makes clear that democratically elected leaders in both the U.S. and Europe have been complicit in the current power imbalance through either willful negligence or accidental lack of competence.
And as mentioned before, her chapter on solutions is by far one of the most detailed and thought-out ones I have read in a while. Most excellent books on the matter fizzle out when it comes to solutions or propose rather far-fetched ideas.
Her book, published before the US election, seems almost prescient, as the massive influence of Big Tech on politics has become especially visible during the start of the new Trump administration. The substantial donations to Trump initiatives by Big Tech leaders and the quick reversal of policies on content moderation and the promotion of diversity and equality underscore Schaake’s warning that tech companies prioritize profit over democratic and societal welfare. Initially, I felt that the scramble to gain favor with the Trump administration contradicted the narrative of a ‘coup’ and suggested rather a strategic cozying up. In other words, I thought this might have been an overstatement. However, with increasing evidence of the extent to which corporate leaders like Elon Musk, completely unelected, unaccountable and in disregard of established security procedures, have been granted access and the rights to terminate US spending programs and to push out civil servants over the past month, the phrase “corporate coup” precisely describes the behavior we are currently witnessing.
Although Marietje Schaake demonstrates extensive knowledge of various digital technologies and their applications, her critique occasionally lacks clarity in differentiating between the inherently anti-democratic characteristics of certain technologies (in need of regulation) and the problematic behaviors of corporations (also in need of regulation). She sometimes appears to vacillate between these two critiques within a single chapter, without clear conceptual differentiation, for example, as in Chapters 4 and 8.
Furthermore, her attempt to cover a wide array of topics sometimes compromises the logical flow, as she transitions abruptly between different yet related issues, thus resulting in shifts in focus that can feel disjointed. Additionally, Chapter 8, which deals with solutions, could benefit from greater consistency with earlier chapters, as it is occasionally unclear how specific solutions relate to points discussed earlier in the book. Some issues even seem to be addressed comprehensively for the first time in the solutions section.
Much of her discussion is framed against the backdrop of differing political regimes, leading to her conclusion that “[d]igitization has empowered authoritarian regimes, while democratic societies misguidedly continue to trust that free markets will lead to free societies” (p. 208). However, when addressing corporate capture rather than insufficient technology regulation, the issue is less about the democracy-autocracy divide and more about the conflict between market capitalism and state-led economies. In other words, the ‘tech coup’ is also a consequence of the specific unfettered brand of US market capitalism, rather than inherent flaws in democratic governance—a point she briefly touches on but does not fully acknowledge or explore.
And lastly, although I greatly appreciate her laser-sharp focus on the subject and the main argument of her book, the relationship between the US government and the tech sector as a double-edged sword—where the fact that the U.S. also uses tech companies to advance domestic control and foreign influence—has been minimally addressed. The notion of ‘digital colonialism’ as a form of US dominance through technology and American companies[1], for example, has increasingly fueled the drive for greater digital sovereignty in the Global South. [2] This uncomfortable dominance by US companies has also prompted the EU to implement various regulatory measures to protect its market and consumers. Therefore, I find the simplified image that Chinese authorities control and direct their tech companies, whereas the US is mainly captured by them, to be somewhat difficult. Especially given that US dominance, precisely through their tech companies and digital services, is the current status quo.
All in all, however, Marietje Schaake’s “The Tech Coup” is a highly recommended and timely read that should be carefully studied by political leaders and tech enthusiasts alike.
[1] Kwet, Michael (2019). Digital colonialism: US empire and the new imperialism in the Global South. Race & Class, 60(4), 3-26. https://journals.sagepub.com/doi/10.1177/0306396818823172
[2] Jiang, Min and Luca Belli (2024). Digital Sovereignty in the BRICS Countries: How the Global South and Emerging Power Alliances Are Reshaping Digital Governance. Cambridge: Cambridge University Press.
This edition of the Digital Governance Book Review was authored by: Melanie Kolbe-Guyot, C4DT.
Image credit: Cover of The Tech Coup – How to Save Democracy from Silicon Valley by Marietje Schaake, published by Princeton University Press.