This week weāre talking with Cory Doctorow (this episode contains explicit language) about how we can get back to that ānew good internet.ā Coryās new book The Internet Con offers a lens to this conversation about disenshittifying the internet through anti-trust laws, limits on corporate tweaking, regulating unconstrained capitalism, and all the ways enshittification is enabled. Cory also shares his experience recording his own audio book under the direction of Gabrielle de Cuir at Skyboat Media, and whatās to come from his next Science Fiction book The Lost Cause.
Cory Doctorow: They bought everyone elseās ideas and operationalized them. Now, those mergers historically would have been prohibited. Right up until like the Reagan era, you werenāt allowed to buy your nascent competitors to create vertical monopolies. You would have had to compete with them, or source them as a supplier.
So imagine if the entire ad stack or the mobile stack was not underneath Google, right? Because Google couldnāt build an ad stack on its own. It had to buy it from someone else. So imagine if that was not underneath Google. And then you would have multiple competing vendors, all using that ad stack. And because they were all competing with each other, you would have multiple competing ad stacks as well.
So right now, Google, because itās stitched up the ads stack, because itās the demand side platform, the sell side platform, the marketplace, an advertiser and a publisher⦠Right? They represent the seller, the buyer, they are the marketplace where they meet, and they compete with both of them⦠This is like when you go for a divorce and your lawyer is also your partnerās lawyer, and theyāre also the judge, and theyāre also trying to match with both of you on Tinder⦠And then when the whole transaction is done, who gets the house? Oh, it turns out the lawyer got the house.
So Google and Facebook - which, again, are a non-competing duopoly - they take 51 cents out of every ad dollar. Historically, it was like 10% was the rake that intermediaries in ads used to get. So thatās money out of the pockets of publishers, right? So you have to have competition, and we donāt have that when companies buy their competitors. As Mark Zuckerberg once said in a breathtaking act of self-incrimination, āIt is better to buy than to compete.ā
And then the next thing that happens when companies get this concentrated is you lose the second way that companies are disciplined, which is regulation. So companies that break the law, if theyāre small, generally get punished pretty bad. We saw that when the GDPR passed in Europe - all the little European ad tech startups, they all went out of business, because they either couldnāt comply with the rules, or when they failed to comply with the rules got slapped around by the commission and put out of business. Google and Facebook just ignored the rules, and 10 years now theyāre still ignoring them. Maybe theyāll eventually get brought up, but they can just like delay, move venue, move forums⦠They keep insisting all evidence to the contrary that theyāre Irish companies, because Ireland is a crime haven, where they donāt really have a working data commissioner⦠There is a guy who has that job, but most days he doesnāt get out of bed, and when he does, he doesnāt put on his pants. He just sits around in his underwear, eating breakfast cereal and watching cartoons. So Google and Facebook get away with breaking the law forever in Europe. And so theyāre not disciplined by regulation. So the historic contours of privacy, labor, fair trading - theyāre just not in there.
[00:36:16.13] Like, if you walked into a store, and you said āGive me part number XYZ for my dryer filterā, and they give you a different part, or they handed you five parts, none of which were that part, and then when you bought one of them and walked out of the store, they didnāt mention that none of them were that part, that would be fraud. Thatās how Amazon works. Amazon makes $31 billion a year letting people pay to match your queries when they wouldnāt be the best match otherwise. Thatās Amazon advertising. And so we throw away consumer protection, and we throw away labor protection, which is the other thing that would discipline companies. So if you think about Uber, Uber does this thing called algorithmic wage discrimination, where Uber drivers, they sort themselves into these two buckets; they call themselves either ants or pickers. So an ant is indiscriminate, they take any job, and a picker is very choosy. And if youāre a picker, that is to say if the wage offer algorithm notices that youāre highly selective, it offers you a higher wage per mile than you would get if you were an ant. But as your selectivity goes down, the algorithm starts pricing your labor lower and lower. If you back off from that algorithm, the wage starts to climb up again until youāre back in. This is like a fisherman playing a fish on a hook. Reeling them out, reeling them in, reeling them out, reeling them in. In traditional labor markets, this is illegal. But when your boss is an app, itās not.
And so this is the second realm⦠Theyāre unconstrained by regulation. So theyāre not constrained by competition, theyāre not constrained by regulation. And then thereās the third bucket of constraint, which is self-help. So historically, when browsers were a cesspool of popup ads, 20 of which would spawn every time you open a new window, and they would be one pixel square, and they would run away from your cursor, and theyād autoplay music, or theyād go full-screen, and show porn⦠I mean, these just awful, awful popup ads; we didnāt ban them. Itās just that browser vendors started to ship popup blockers that were on by default. It started with Opera, then Mozilla, and then because it was a competitive market, everybody started doing it. And so that was the end of it, right? Why pay for a pop-up ad if the pop-up ads never show up? So if youāve been thinking about that Uber wage discrimination deal, it might have reminded you of something. Like, maybe it reminds you of exponential back-off in TCP/IP, or maybe it reminds you of how bids and puts are done by liquidity provision stock trading bots, where they notice that the price is going up, so they reduce the frequency with which theyāre bidding until the price comes back down⦠So thereās no reason to imagine that you couldnāt like make an app that was like a meta Uber app for drivers, that noticed when the price was going down for labor, and coordinated among multiple drivers to not have that happen, to reject jobs until the price goes back up. Or you know, what you were just talking about - your app is giving you notifications you donāt want to see. Thereās no reason why you couldnāt pop-up-block that. The reason that you canāt do it is not technical, itās that section 1201 of the Digital Millennium Copyright Act. The same law that bans you from removing DRM from an Audible audiobook also makes it a felony to reverse engineer those apps, because theyāre encrypted.
And so one in four web users has installed an ad blocker. Itās the largest consumer boycott in human history. Zero app users have installed an ad blocker, because the first step to installing that ad blocker is to reverse-engineer the app, which can land you in jail for five years. And so this is the third area of constraint that firms are removed from. Their regulatory capture allows them to exercise unlimited discretion in how they reconfigure these infinitely flexible digital tools, and it allows them to confiscate the discretion that we would have to reconfigure those tools, so they serve us instead of their shareholders.
[00:40:08.10] Even when nothing unlawful takes place, if bypassing DRM or violating Terms of Service, or Apple, the subcomponents on iPhones have tiny microscopic Apple logos engraved on them, so that when theyāre refurbed, or harvested in the Far East, and then sent back across the US border to be used in refurbs, they argue that thatās a trademark tarnishment and they have them stopped at the border, so you canāt get the parts, so you canāt fix the phone⦠So even the kinds of repairs you can do on an iPhone without bypassing DRM, and risking criminal prosecution, importing the parts to do it from old phones is potentially a trademark violation.
So you have this incredible regulatory leeway in preventing business customers and end users from altering the business logic of the service to serve them. You also have the same leeway in undertaking those same alterations on your own behalf as the OEM. And no one competes with you, so even if you could beat those other two forces, thereād be nowhere to go. And the reason nobody competes with you is because of those two things. And so itās all sewn up.
So how do we get everything back? Well, the first thing weāve got to do is just antitrust. And thatās amazing. Thereās a lot going on right now with antitrust. Googleās in court, Amazonās in court, Appleās got an investigation pending in the EU; Salesforce, they say theyāre gonna go after the Microsoft Activision merger again in the US⦠You name it, this is a historically unprecedented time. It hasnāt looked like this since I was in diapers. You have to go back before the Carter administration to find this degree of antitrust. And not just here in the EU, in the UK, in Australia, in Canada, and even in China, where the Chinese cyberspace regulation actually bans companies from reconfiguring their services to block interoperability.
So you have this incredible moment where people are recognizing that antitrust matters, and itās happening across lots of different markets, and lots of different agencies. The Consumer Financial Protection Bureau just promulgated a proposed regulation that will force your bank to interoperably port your data out, either to comparison shopping sites that will say āOh yeah, this is your mortgage, this is your APR on your credit card. This is how often you get hit by overdraft charges. This is how much youāve got in your savings, and what interest rate youāre getting. You should be at this other bank.ā And then, one click, port all your data to the other bank, including all your transaction history, your pays, and everything. Thatās coming out of that Consumer Financial Protection Bureau, not out of the consumer protection agencies, not out of the DOJ, not out of the Federal Communications Commission⦠Itās like the bank regulators is getting in on the act. So this is great. So this is step one, antitrust.
Step two, constrain the way that the firms twiddle the knobs on the backend. Make them respect and obey privacy, labor and consumer protection laws. And the book gets into, as you said before, shovel-ready proposals for this. Ways that you can actually hold them to certain codes of conduct, where breaches are easy to detect⦠Because a lot of the codes of conduct that people want to impose on tech are really hard to prove when thereās a violation. You have to stop people from harassing people on your platform. Itās like āAlright, now we have to agree on what harassment is. Then we have to take some instance of a user doing something bad to some other user, and agree on whether that was harassment. Then we have to depose your engineers and figure out whether you did enough to stop the harassment.ā And now itās like five years later, and thereās been 50,000 more, 50 million more harassment complaints. Whatās the point? Itās just not going to work. Even if you really think harassment is a problem, as I do, this is just not a workable remedy.
[00:44:01.02] But the book goes into some other remedies⦠In Mastodon, thereās a one-click facility to export an XML file - or maybe it was a JSON file - that has all of the people you follow, all the people who follow you, as well as your blocks and mutes and whatever. With one click, you can export that, and with one click you can export it somewhere else, and everything just shifts over. The same way ā if you know the RSS spec at all, thereās like a directive in RSS where you can say āThis feed has movedā, and just like the next time the RSS reader hits it, it just redirects somewhere else. So if youāre using Feedly, or whatever, and they start charging you money for something that used to be free, or they start spying on your users, or they, I donāt know, start [unintelligible 00:44:39.04] spotted owls as an internal corporate initiative to find a youth serum, or something⦠You can just like upload the redirect directive and then all the people who subscribe to your RSS go wherever youāve gone to; some WordPress feed, stuff like that.