Issue Dominant firms threatening relocation to extract lower taxes and regulation

Summary

Among its longer-term uncertainties, the report suggests a few dominant companies could wield their influence by threatening to relocate unless governments grant low taxes and lighter regulation. That could weaken governments' ability to control these firms. The companies are already expanding across countries and a wider range of economic and social services, complicating regulation. Global technology firms are major employers and investors in the UK technology ecosystem valued at one trillion pounds, which gives them considerable weight. Conversely, the report argues that stronger regulation could promote fairer corporate taxation, raising revenue from large technology firms while supporting healthy competition.