Why Planet Money Believes the Internet is Failing

In an evolving digital landscape, Cory Doctorow highlights a concerning trend he terms “enshittification,” a process that signifies the degradation of online platforms. This concept, popularized in his recent book of the same name, analyzes how prominent companies, such as Facebook, Google, Amazon, and Uber, shift their focus over time, often leading to user dissatisfaction.
Understanding Enshittification
Doctorow, a seasoned internet activist and journalist, defines enshittification as a three-stage process affecting online platforms:
Stage 1: Attracting Users
- Platforms begin with an enticing offer, fueled by substantial investor financing.
- In this phase, user experience is prioritized, featuring benefits like minimal data harvesting.
- Examples include early Facebook interactions and competitive pricing strategies by Amazon and Uber.
These companies aim to grow their user base by creating attractive, functional services, enabling network effects. The more users they attract, the more valuable their platforms become.
Stage 2: Prioritizing Business Customers
Once a platform reaches substantial scale, attention shifts to appealing to business clients at the expense of users:
- User data is increasingly used for targeted advertising.
- Platforms begin offering opaque deals to advertisers and publishers, affecting the quality of content users receive.
This shift ultimately alters the user experience as platforms focus on cash flow over user satisfaction.
Stage 3: The Deterioration of Service
In the final stage, platforms tighten their hold on business clients and users:
- Ad prices increase while targeting efficiency decreases.
- Platforms exploit algorithms to favor paid content, leading to user frustration.
- Merchants face rising costs due to hidden fees and competitive disadvantages.
As a consequence, users encounter deteriorating service and higher costs, marking the true decline of the platform’s initial promise.
Factors Contributing to Enshittification
According to Doctorow, two key issues drive the enshittification phenomenon:
- Lack of competition among platforms leads to complacency.
- Weak regulatory frameworks fail to protect consumer interests.
Doctorow advocates for vigorous antitrust enforcement and the abandonment of outdated regulations that allow monopolistic behaviors. He recommends introducing a “right-to-exit” for users and enhancing interoperability among services to foster fair competition.
The Future of Online Platforms
Doctorow’s arguments resonate amid growing concerns about user rights and platform accountability. As consumer advocates push for change, there is a burgeoning movement to challenge and potentially reverse the enshittification of the internet.
In this landscape of competing interests, the future of online platforms hinges on balancing the needs of users and businesses while fostering a competitive digital ecosystem.