View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Comment
June 10, 2022updated 13 Jun 2022 5:01am

Splinternet: Macroeconomic trends

Listed below are the key macroeconomic trends impacting the splinternet theme, as identified by GlobalData.

Free Whitepaper
img

Internet’s Next Revolution: Can Web 3.0 Unlock Decentralized and Intelligent Internet?

Big tech companies have created massive ecosystems that offer the internet’s key services, making it impossible for users to break from their “walled garden” and ultimately surrender control of their data. A sharp rise in public awareness about data privacy and the value of their data has stimulated new awareness around web 3.0 networks. Web 3.0 is the third iteration of the internet, designed by token-based economics to wrest the control of user data from big tech companies and provide a user-centric internet. It creates a mesh of peer-to-peer communication and decentralized governance structures to enable individuals and organizations to tackle data privacy and censorship threats. Reasons to read: An increasing number of startups and tech players are shifting gears to create blockchain-powered decentralized ecosystems for different sector-specific applications and services. Against this backdrop, businesses need more awareness of the fast-paced fundamental restructuring of the internet. The report highlights the current state of play and the future potential of web 3.0 networks in driving decentralized and user-controlled internet. This is anticipated to unlock new possibilities for enterprises across sectors such as financial services, gaming, sports, media & entertainment, retail, and technology, among others. Read our report and gather insights on the following topics:
  • Evolution of the internet
  • Active players in the web 3.0 ecosystem
  • Key applications by major sectors
  • Driver and challenges
  • Top startups and Mergers & Acquisitions
  • Regulatory landscape & future scope
by GlobalData
Enter your details here to receive your free Whitepaper.

The Russo-Ukrainian conflict has widened the gulf between competing digital spheres. This gulf mirrors the distrust and dysfunction in international relations, from the risk of cyberattacks to increasing competition between the US and China, with the associated technology decoupling. Competing visions risk hindering the development of international governance across various digital segments, from cyberspace to internet infrastructure, to emerging technologies.

India

India has adopted a pragmatic vision of the internet, engaging with actors on various sides of the policy debate, depending on the technology governance domain. On the one hand, its draft Personal Data Protection Bill mirrors principles in the EU’s General Data Protection Regulation (GDPR), suggesting a potential preference for the Western approach to data security. However, in India, internet access was cut off repeatedly in January and February 2021 as farmers took to the streets to express their opposition to agricultural reform bills.

Additionally, India has banned 321 Chinese apps, including TikTok since the increase in political tension with China in 2020 following a border clash. India believes user data was being sent via the apps to servers in China, allowing the data to be collected and analysed by what the country described as “elements hostile to the sovereignty and integrity of India and for activities detrimental to national security.”

Russia

Amid the Russian invasion of Ukraine, Moscow appears intent on cutting itself off from the rest of the digital world and accelerating the creation of a sovereign internet. In March 2022, the media watchdog Roskomnadzor banned Facebook and Instagram and restricted Twitter, claiming that the platforms discriminated against Russians by placing restrictions on the content of state media outlets, such as Russia Today and Sputnik.

Russia’s increasing isolation is likely to hamper the country’s tech industry for a long time, as Western sanctions will cut off imports of critical products and services. Several companies, such as Microsoft, Apple, Samsung, Oracle, and Cisco, have refused to sell to Russia or shut down operations. Given the lack of a strong domestic tech manufacturing industry, Russia will increasingly depend on Chinese equipment and expertise to develop next-generation technologies.

Environmental, social, and governance (ESG)

With the entrenchment of autocratic regimes into their own narratives backed by domestic media, the splinternet will see corporate bosses increasingly forced to divest from companies and countries run by autocrats. The Ukraine invasion and Russia’s increased isolation are good examples of the types of ESG issues investors can face for holding stakes in countries linked with human rights violations. As the war in Ukraine unfolds with growing casualties and economic damage, the ethical issues start weighing on foreign investors and their financial decisions.

In China, private companies subject to strict state control, including Tencent, ByteDance, and Sina, play a crucial role in disseminating official misinformation over the Ukraine invasion, posing complex compliance issues for the companies’ investors. These platforms are promoting the Kremlin’s narrative on the Ukraine attack while suppressing posts that are sympathetic to Kyiv.

The Financial Times reports that investments in Chinese platforms are becoming problematic from a social responsibility perspective, as funds with technology holdings in China come under pressure over investors’ ESG concerns.

This is an edited extract from the Splinternet – Thematic Research report produced by GlobalData Thematic Research.

Free Whitepaper
img

Internet’s Next Revolution: Can Web 3.0 Unlock Decentralized and Intelligent Internet?

Big tech companies have created massive ecosystems that offer the internet’s key services, making it impossible for users to break from their “walled garden” and ultimately surrender control of their data. A sharp rise in public awareness about data privacy and the value of their data has stimulated new awareness around web 3.0 networks. Web 3.0 is the third iteration of the internet, designed by token-based economics to wrest the control of user data from big tech companies and provide a user-centric internet. It creates a mesh of peer-to-peer communication and decentralized governance structures to enable individuals and organizations to tackle data privacy and censorship threats. Reasons to read: An increasing number of startups and tech players are shifting gears to create blockchain-powered decentralized ecosystems for different sector-specific applications and services. Against this backdrop, businesses need more awareness of the fast-paced fundamental restructuring of the internet. The report highlights the current state of play and the future potential of web 3.0 networks in driving decentralized and user-controlled internet. This is anticipated to unlock new possibilities for enterprises across sectors such as financial services, gaming, sports, media & entertainment, retail, and technology, among others. Read our report and gather insights on the following topics:
  • Evolution of the internet
  • Active players in the web 3.0 ecosystem
  • Key applications by major sectors
  • Driver and challenges
  • Top startups and Mergers & Acquisitions
  • Regulatory landscape & future scope
by GlobalData
Enter your details here to receive your free Whitepaper.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Retail Banker International