Highlights §
- Last year, I coined the term “enshittification” to describe the way that platforms decay. That obscene little word did big numbers; it really hit the zeitgeist. (View Highlight)
- So what’s enshittification and why did it catch fire? It’s my theory explaining how the internet was colonised by platforms, why all those platforms are degrading so quickly and thoroughly, why it matters and what we can do about it. We’re all living through a great enshittening, in which the services that matter to us, that we rely on, are turning into giant piles of shit. It’s frustrating. It’s demoralising. It’s even terrifying. (View Highlight)
- let’s examine how enshittification works. It’s a three-stage process: first, platforms are good to their users. Then they abuse their users to make things better for their business customers. Finally, they abuse those business customers to claw back all the value for themselves. Then, there is a fourth stage: they die. (View Highlight)
- Facebook arose from a website developed to rate the fuckability of Harvard undergrads, and it only got worse after that. When Facebook started off, it was only open to US college and high-school kids with .edu and K-12.us addresses. But in 2006, it opened up to the general public (View Highlight)
- That was stage one. Facebook had a surplus — its investors’ cash — and it allocated that surplus to its end users. Those end users proceeded to lock themselves into Facebook. Facebook, like most tech businesses, had network effects on its side. (View Highlight)
- But Facebook didn’t just have high network effects, it had high switching costs. Switching costs are everything you have to give up when you leave a product or service. In Facebook’s case, it was all the friends there that you followed and who followed you. In theory, you could have all just left for somewhere else; in practice, you were hamstrung by the collective action problem. (View Highlight)
- It’s hard to get lots of people to do the same thing at the same time. So Facebook’s end users engaged in a mutual hostage-taking that kept them glued to the platform. Then Facebook exploited that hostage situation, withdrawing the surplus from end users and allocating it to two groups of business customers: advertisers and publishers. (View Highlight)
- Users, advertisers, publishers — everyone was locked in. Which meant it was time for the third stage of enshittification: withdrawing surplus from everyone and handing it to Facebook’s shareholders. (View Highlight)
- For the users, that meant dialling down the share of content from accounts you followed to a homeopathic dose, and filling the resulting void with ads and pay-to-boost content from publishers. For advertisers, that meant jacking up prices and drawing down anti-fraud enforcement, so advertisers paid much more for ads that were far less likely to be seen. For publishers, this meant algorithmically suppressing the reach of their posts unless they included an ever-larger share of their articles in the excerpt. And then Facebook started to punish publishers for including a link back to their own sites, so they were corralled into posting full text feeds with no links, meaning they became commodity suppliers to Facebook, entirely dependent on the company both for reach and for monetisation. (View Highlight)
- Facebook now enters the most dangerous phase of enshittification. It wants to withdraw all available surplus and leave just enough residual value in the service to keep end users stuck to each other, and business customers stuck to end users, without leaving anything extra on the table, so that every extractable penny is drawn out and returned to its shareholders. ( (View Highlight)
- All it takes is one Cambridge Analytica scandal, one whistleblower, one livestreamed mass-shooting, and users bolt for the exits, and then Facebook discovers that network effects are a double-edged sword. If users can’t leave because everyone else is staying, when everyone starts to leave, there’s no reason not to go. That’s terminal enshittification. (View Highlight)
- The period of free Fed money certainly led to tech companies having a lot of surplus to toss around. But Facebook started enshittifying long before ZIRP ended, so did Amazon, Microsoft and Google. Some of the tech giants got new leaders. But Google’s enshittification got worse when the founders came back to oversee the company’s AI panic — excuse me, AI pivot (View Highlight)
- And, finally, workers. Tech workers have very low union density, but that doesn’t mean that tech workers don’t have labour power. The historical “talent shortage” of the tech sector meant that workers enjoyed a lot of leverage. Workers who disagreed with their bosses could quit and walk across the street and get another, better job. (View Highlight)
- That’s why mottoes such as Google’s “Don’t be evil” and Facebook’s “Make the world more open and connected” mattered; they instilled a sense of mission in workers. It’s what the American academic Fobazi Ettarh calls “vocational awe” or Elon Musk calls being “extremely hardcore”. (View Highlight)
- Tech workers had lots of bargaining power, but they didn’t flex it when their bosses demanded that they sacrifice their health, their families, their sleep to meet arbitrary deadlines. So long as their bosses transformed their workplaces into whimsical “campuses”, with gyms, gourmet cafeterias, laundry service, massages and egg-freezing, workers could tell themselves that they were being pampered, rather than being made to work like government mules. (View Highlight)
- The pre-enshittification era wasn’t a time of better leadership. The executives weren’t better. They were constrained. Their worst impulses were checked by competition, regulation, self-help and worker power. So what happened? (View Highlight)
- Most of our global economy is dominated by five or fewer global companies. If smaller companies refuse to sell themselves to these cartels, the giants have free rein to flout competition law further, with “predatory pricing” that keeps an independent rival from gaining a foothold. When Diapers.com refused Amazon’s acquisition offer, Amazon lit $100mn on fire, selling diapers way below cost for months, until Diapers.com went bust, and Amazon bought them for pennies on the dollar. (View Highlight)
- Today’s giants are not constrained by competition. They don’t care. They don’t have to. They’re Google. (View Highlight)
- When an industry consists of hundreds of small- and medium-sized enterprises, it is a mob, a rabble. Hundreds of companies can’t agree on what to tell Parliament or Congress or the Commission. They can’t even agree on how to cater a meeting where they’d discuss the matter.
But when a sector dwindles to a bare handful of dominant firms, it ceases to be a rabble and it becomes a cartel. Five companies, or four, or three, or two or just one company can easily converge on a single message for their regulators, and without “wasteful competition” eroding their profits, they have plenty of cash to spread around. (View Highlight)
- This is why competition matters: it’s not just because competition makes companies work harder and share value with customers and workers; it’s because competition keeps companies from becoming too big to fail, and too big to jail. (View Highlight)
- But: Google and Facebook have been unscathed by European privacy law. That’s not because they don’t violate the GDPR. It’s because they pretend they are headquartered in Ireland, one of the EU’s most notorious corporate crime havens. And Ireland competes with the EU’s other crime havens — Malta, Luxembourg, Cyprus and, sometimes, the Netherlands — to see which country can offer the most hospitable environment. (View Highlight)
- This is where that third constraint, self-help, would surely come in handy. If you don’t want your privacy violated, you don’t need to wait for the Irish privacy regulator to act, you can just install an ad blocker. (View Highlight)
- More than half of all web users are blocking ads. But the web is an open platform, developed in the age when tech was hundreds of companies at each other’s throats, unable to capture their regulators. Today, the web is being devoured by apps, and apps are ripe for enshittification. Regulatory capture isn’t just the ability to flout regulation, it’s also the ability to co-opt regulation, to wield regulation against your adversaries. (View Highlight)
- Today’s tech giants got big by exploiting self-help measures. When Facebook was telling MySpace users they needed to escape Murdoch’s crapulent Australian social media panopticon, it didn’t just say to those Myspacers, “Screw your friends, come to Facebook and just hang out looking at the cool privacy policy until they get here.” It gave them a bot. You fed the bot your MySpace username and password, and it would login to MySpace and pretend to be you, scraping everything waiting in your inbox and copying it to your Facebook inbox. (View Highlight)
- When Microsoft was choking off Apple’s market oxygen by refusing to ship a functional version of Microsoft Office for the Mac in the 1990s — so that offices were throwing away their designers’ Macs and giving them PCs with upgraded graphics cards and Windows versions of Photoshop and Illustrator — Steve Jobs didn’t beg Bill Gates to update Mac Office. He got his technologists to reverse-engineer Microsoft Office and make a compatible suite, the iWork Suite, whose apps, Pages, Numbers and Keynote could read and write Microsoft’s Word, Excel and PowerPoint files. (View Highlight)
- When Google entered the market, it sent its crawler to every web server on earth, where it presented itself as a web-user: “Hi! Hello! Do you have any web pages? Thanks! How about some more? How about more?” (View Highlight)
- But every pirate wants to be an admiral. When Facebook, Apple and Google were doing this adversarial interoperability, that was progress. If you try to do it to them, that’s piracy. (View Highlight)
- Think of our ad blockers again. Fifty per cent of web users are running ad blockers. Zero per cent of app users are running ad blockers, because adding a blocker to an app requires that you first remove its encryption, and that’s a felony. (Jay Freeman, the American businessman and engineer, calls this “felony contempt of business-model”.) (View Highlight)
- So when someone in a boardroom says, “Let’s make our ads 20 per cent more obnoxious and get a 2 per cent revenue increase,” no one objects that this might prompt users to google, “How do I block ads?” After all, the answer is, you can’t. Indeed, it’s more likely that someone in that boardroom will say, “Let’s make our ads 100 per cent more obnoxious and get a 10 per cent revenue increase.” (This is why every company wants you to install an app instead of using its website.) (View Highlight)
- Remember when tech workers dreamt of working for a big company for a few years, before striking out on their own to start their own company that would knock that tech giant over? That dream shrank to: work for a giant for a few years, quit, do a fake start-up, get “acqui-hired” by your old employer, as a complicated way of getting a bonus and a promotion. Then the dream shrank further: work for a tech giant for your whole life, get free kombucha and massages on Wednesdays. (View Highlight)
- And now, the dream is over. All that’s left is: work for a tech giant until they fire you, like those 12,000 Googlers who got fired last year, eight months after a stock buyback that would have paid their salaries for the next 27 years. (View Highlight)
- There are four constraints that prevent enshittification: competition, regulation, self-help and labour. To reverse enshittification and guard against its re-emergence, we must restore and strengthen each of these. (View Highlight)
- On competition, it’s actually looking pretty good. The EU, the UK, the US, Canada, Australia, Japan and China are all doing more on competition than they have in two generations. They’re blocking mergers, unwinding existing ones, taking action on predatory pricing and other sleazy tactics. Remember, in the US and Europe, we already have the laws to do this; we just stopped enforcing them. (View Highlight)
- What about regulation? How will we get tech companies to stop doing that one weird trick of adding “with an app” to escape enforcement? (View Highlight)
- Well, here in the EU, they’re starting to figure it out. Recently, the main body of the Digital Markets Act and the Digital Services Act went into effect, and they let people who get screwed by tech companies go straight to the European courts, bypassing the toothless watchdogs in places like Ireland. (View Highlight)
- What about self-help? That’s a lot farther away, alas. The EU’s DMA will force tech companies to open up their walled gardens for interoperation. You’ll be able to use WhatsApp to message people on iMessage, or quit Facebook and move to Mastodon, but still send messages to the people left behind. But if you want to reverse-engineer one of those Big Tech products and mod it to work for you, not them, the EU’s got nothing for you. This is an area ripe for improvement. My big hope here is that Stein’s Law will take hold: anything that can’t go on forever will eventually stop. (View Highlight)
- Finally, there’s labour. Here in Europe, there’s much higher union density than in the US, which American tech barons are learning the hard way. There is nothing more satisfying in the daily news than the recent salvo by Nordic unions against that Tesla guy. But even in the US, there’s a massive surge in tech unions. Tech workers have realised they’re not founders-in-waiting. In Seattle, Amazon’s tech workers walked out in sympathy with Amazon’s warehouse workers, because they’re all workers. (View Highlight)
- From Mercedes effectively renting you your accelerator pedal by the month to Internet of Things dishwashers that lock you into proprietary dish soap, enshittification is metastasising into every corner of our lives. Software doesn’t eat the world, it just enshittifies it. (View Highlight)