The relationship between Europe and the big tech companies born in Silicon Valley is going through its most tense moment.
Growing discontent points to how platforms such as Airbnb and Uber have disrupted economic, social and urban dynamics on the continent. Beyond tourism or mobility, the debate points to a larger question: are we facing the beginning of a rejection of technological globalisation that, until now, seemed unstoppable?
The Twilight of Globalization?
By: Gabriel E. Levy B.
Since its founding in 2008, Airbnb has promised to democratize accommodation by connecting travelers with local hosts, offering a more authentic and affordable experience than traditional hotels. The initial idea, which was enthusiastically welcomed, seemed to be an innovative solution that fostered cultural exchange and boosted local economies.
However, large-scale implementation brought with it side effects that have set off alarms in several European cities. Barcelona, Amsterdam and Paris, emblematic destinations of global tourism, have become paradigmatic examples of the unintended consequences of this platform.
According to studies by the Barcelona Institute of Urban Policy, the model encouraged the mass purchase of homes exclusively for tourist rentals, attracting investors who prioritize profits over the residential needs of local inhabitants.
This phenomenon not only raised the price of traditional rents, but also led to a profound demographic change. Residents of central neighborhoods, historically known for their cultural diversity and community character, were displaced to cheaper peripheries but with worse transport and service connections.
This dynamic contributed to the fragmentation of the social fabric and the gentrification of areas that previously represented the urban soul of these cities.
The problem, far from being new, connects to global trends that Saskia Sassen, author of The Global City, had already anticipated.
In his work, Sassen analyzes how the financialization of urban land turns housing into investment assets, decoupling them from their main function as spaces of habitability. This process, driven by platforms such as Airbnb, not only transforms local dynamics, but also subordinates the design of cities to the needs of the global market. In cities where tourism is an economic pillar, this logic exacerbated inequalities by turning entire neighborhoods into showcases for tourists, eroding their identity and reducing them to mere consumable scenarios.
What were once vibrant streets full of daily life have now been transformed into spaces dedicated almost exclusively to temporary leisure. Traditional businesses, such as bakeries, hardware stores or bookstores, have been replaced by themed cafes, souvenir shops and restaurants designed to cater to a passing clientele. This loss of local functionality, coupled with rising living costs, generates a sense of uprootedness among longtime residents, who feel that their city has been taken away from them in the name of limitless tourism.
Mobility or congestion: Uber’s dilemma in Europe
On the other hand, Uber has drastically changed how we get around. In its beginnings, it was presented as a modern and economical alternative to traditional transport.
But in cities such as London or Berlin, the impact of the platform did not take long to reveal its contradictions.
According to a report by the University of Oxford, the proliferation of vehicles linked to Uber has increased the urban vehicle fleet, contributing to traffic congestion and higher carbon emissions, a direct blow to the European Union’s climate goals.
In addition, tensions with local taxi drivers have fueled mass protests in several capitals. For many, Uber represents not only unfair competition, but also an erosion of labor rights.
As economist Guy Standing points out in The Precariat: The New Dangerous Class, these platforms often make working conditions more precarious by classifying their drivers as “independent partners” rather than employees with employment benefits.
Digital dividend: Europe loses while Silicon Valley gains
The discontent is not limited to the urban impact. There is deep discomfort with the economic model of these Big Techs, which generates huge dividends by exporting services but leaves few tax benefits in Europe. Platforms such as Meta (formerly Facebook), Google and Amazon run colossal operations within the continent, but their complex tax schemes allow much of their profits to evade local taxes. In fact, the European Commission has fined these companies billions of euros in attempts to control these practices.
Jürgen Habermas, in his essay on the crisis of global capitalism, warns that these imbalances feed a rejection of supranational institutions. And this rejection, some experts argue, is fueling political discourses that favor economic nationalism. France, for example, has proposed stricter laws against Airbnb, while Spain is debating imposing new tax rates on Uber’s operations.
The Renaissance of Digital Nationalisms
The growing disenchantment with Big Tech could be marking an unexpected shift in Europe, a continent that for decades led global economic integration. Now, speeches such as that of Giorgia Meloni in Italy or Viktor Orbán in Hungary show how political leaders are channelling this unease into nationalist narratives. These rhetorics, although varied, have a common denominator: the protection of national interests in the face of global dynamics perceived as extractive.
A paradigmatic case is the development of “digital sovereignty”. France and Germany, for example, have promoted initiatives such as Gaia-X, a platform that seeks to make cloud storage services independent of US giants such as Amazon Web Services. This move is not only technical, but symbolic: it reflects a growing desire to regain control over the digital economy and data.
On the other hand, local platforms such as BlaBlaCar and Bolt have gained ground against Uber in several European countries. These companies, although similar in concept, enjoy greater acceptance because they are rooted in local contexts and better respect European regulations.
From Global Leaders to Local Collapse: Cases of Resistance
Stories of resistance against Big Tech abound.
In Berlin, the Deutsche Wohnen & Co Enteignen collective managed to take to a referendum the expropriation of properties of large real estate corporations, many of which are linked to the rise of Airbnb. Although not binding, the result showed massive support for policies that prioritize access to housing over speculation.
In Barcelona, Mayor Ada Colau, a former housing activist, led a crusade against Airbnb by imposing million-dollar fines and banning new licenses for tourist rentals. For its part, London has introduced restrictions to limit the number of days a property can be on Airbnb per year, seeking to balance the market.
As for Uber, Brussels stood out as one of the first European bastions to reject the platform model, considering it incompatible with its labour standards. This resistance forced Uber to adapt to a more regulated model, which includes the direct hiring of drivers.
In conclusion, Europe is at a crossroads in the face of the power of Big Tech. What started as promising innovations are now perceived as threats to social cohesion, the local economy and the environment. This clash reflects an exhaustion of the globalized model, opening the way to a resurgence of protectionist and nationalist policies. The battle for control of the digital future is just beginning, and Europe seems determined not to give ground.
Sources:
Sassen, S. (2001). The Global City: New York, London, Tokyo. Princeton University Press.
Standing, G. (2014). The Precariat: The New Dangerous Class. Bloomsbury Academic.
European Commission. (n.d.). Competition policy. Retrieved from https://ec.europa.eu/competition/
Barcelona Institute of Urban Policy. (n.d.). Report on the impact of tourism on European cities. Retrieved from https://urbanpolicybarcelona.org/
Habermas, J. (2015). The Lure of Technocracy. Polity Press.
University of Oxford. (2020). Impact of ride-hailing services on urban mobility. Retrieved from https://oxford.edu/research/
