Can The Powerful ‘Star Wars’ Trade Federation Exist In Real Life?

Within the “Star Wars” films, the Trade Federation was a robust conglomerate that managed interstellar commerce. It had its personal non-public army and even had a seat within the Galactic Senate. It used its energy and affect to manage costs, power one-sided commerce offers with planets, and even management native politics.

Probably the most well-known instance of the Federation’s energy was when it used its warships to blockade the planet Naboo in response to a Senate regulation that may impose taxes on the Free Trade Zones. This resulted within the Galactic Republic dispatching Qui-Gon Jinn and Obi-Wan Kenobi to barter with the Commerce Federation viceroy at first of “The Phantom Menace.”

Whereas the Commerce Federation’s machinations are complicated, with others calling the pictures behind-the-scenes, it nonetheless takes gumption for a personal firm to problem the federal government, particularly utilizing power. Would any giant firm on this galaxy have the facility and affect to difficulty an identical problem to authorities energy?

Right now, the Commerce Federation can be thought of a megacorporation. Because the identify suggests, it’s a very giant and highly effective company or enterprise entity. However it additionally has vital political energy. It might be able to ignore or break legal guidelines primarily as a result of governments should not have the facility to implement their legal guidelines towards it. They arrange their very own guidelines and have their very own non-public military highly effective sufficient to topple governments.

Examples of megacorporations are principally in fiction and portrayed as evil. They embrace Omni Client Merchandise (OCP) from the “Robocop“ films, the Shinra Corporation from the “Ultimate Fantasy 7” online game, and the Mishima Zaibatsu from the “Tekken” collection. A extra benevolent instance could possibly be Marvel Comics’ Stark Industries, headed by Tony Stark (aka Iron Man).

However there are two actual life examples of a megacorporation that existed throughout the seventeenth century. The primary is the Dutch East India Co. (also referred to as the Vereenigde Oostindische Compagnie or VOC) which started in 1602 and lasted till its dissolution in 1799. The Dutch authorities granted VOC a monopoly on the spice commerce in Africa and Asia for 21 years. It later had the suitable to make treaties and conduct army operations. The VOC had its personal army (10,000 troopers and 40 warships) at its peak.

The opposite instance is the British East India Co. which was based in 1600 by a gaggle of distinguished retailers and explorers and dissolved in 1874. It was given a commerce monopoly by Queen Elizabeth I. As the corporate grew, it not solely had management of the spice commerce in components of Africa and Asia, it additionally engaged in slave buying and selling. It had its personal armed forces of 260,000 troopers — twice the dimensions of the British military on the time. This military was used to beat and management India. At its peak, the worth of the British East India Co. was believed to be $7.8 trillion in right this moment’s {dollars}.

The idea of the Trade Federation was impressed by each the VOC and the British East India Co.

Right now, the world has modified to the purpose the place megacorporations just like the Commerce Federation should not prone to exist. First, most developed international locations disfavor monopolies and have antitrust or competitors legal guidelines that forestall giant corporations from unreasonably restraining commerce or forestall opponents from getting into the market. Additionally, colonialism is frowned upon right this moment though a couple of international locations are both thinking about it or are merely going for it, no matter what different international locations threaten to do in response.

Lastly, giant public corporations right this moment are unlikely to spend giant quantities of cash on non-public armies or “safety bills.” Whereas they could spend vital quantities of cash to guard their well-known CEOs, shareholders and traders is not going to be pleased with the corporate spending billions to buy mercenaries, tanks, and bombs. And even when they have been to have giant non-public armies, governments will simply make quick work of them, both with their very own army forces or with the help of their extra highly effective allies.

However that doesn’t imply giant corporations are powerless. Whereas they could not have army may, they are able to cripple native economies or handle the circulate of knowledge which can upset residents and voters.

For instance, a couple of months in the past, when Minneapolis thought of passing a regulation requiring a minimal wage for rideshare drivers, each Uber and Lyft threatened to stop services in the city. This may increasingly seem like Uber and Lyft throwing out the child with the bathwater. However they’re anticipating that the motion will disrupt the town’s transportation and upset each native residents and passengers. They’ve carried out this prior to now.

When the town of Austin handed an ordinance in 2016 requiring drivers to be fingerprinted to be able to shield passengers, Uber and Lyft suspended service within the metropolis for a 12 months. The suspension was lifted when the rule was overturned. Newly fashioned different ridesharing apps in response have been poorly acquired resulting from frequent crashing.

Google and Meta are threatening to take motion towards governments that power them to pay information websites for his or her content material. Google has removed links to California news websites in response to a proposed regulation that may require it to pay a royalty to information publishers. This transfer has been criticized for supporting censorship whereas suppressing journalism and democracy.

Equally, Fb has blocked hyperlinks to information websites in Canada in response to the Online News Act, which requires corporations like Meta and Google to pay information websites for linking content material. This transfer has been criticized for stopping the unfold of essential info, notably during disasters and for negatively affecting local news sites.

Right now, the probabilities of a conglomerate just like the Commerce Federation being fashioned on this galaxy is as doubtless because the Loss of life Star. However corporations searching for world domination produce other means to problem the federal government.

Steven Chung is a tax lawyer in Los Angeles, California. He helps individuals with fundamental tax planning and resolve tax disputes. He’s additionally sympathetic to individuals with giant scholar loans. He might be reached by way of e-mail at stevenchungatl@gmail.com. Or you possibly can join with him on Twitter (@stevenchung) and join with him on LinkedIn.