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Guest Rand Fishkin argues the internet's problems aren't just from "Big Tech," but from U.S. regulators failing to enforce antitrust laws. This abdication of responsibility allowed platforms to prioritize profits over a healthy, open web ecosystem, harming smaller players.
Platforms follow a predictable cycle called 'inshittification.' First, they offer a great user experience to achieve scale. Next, they squeeze users to benefit advertisers. Finally, they squeeze advertisers to maximize their own profits. This model explains why platforms inevitably prioritize profit over user well-being and safety.
The current era of exploitative digital platforms was made possible by a multi-decade failure to enforce antitrust laws. This policy shift allowed companies to buy rivals (e.g., Facebook buying Instagram) and engage in predatory pricing (e.g., Uber), creating the monopolies that can now extract value without competitive consequence.
Platforms grew dominant by acquiring competitors, a direct result of failed antitrust enforcement. Cory Doctorow argues debates over intermediary liability (e.g., Section 230) are a distraction from the core issue: a decades-long drawdown of anti-monopoly law.
Platform decay isn't inevitable; it occurred because four historical checks and balances were removed. These were: robust antitrust enforcement preventing monopolies, regulation imposing penalties for bad behavior, a powerful tech workforce that could refuse unethical tasks, and technical interoperability that gave users control via third-party tools.
The Democratic party's focus on antitrust, according to Warren, is not anti-business but fundamentally pro-market. By preventing monopolies, it fosters a competitive environment where companies are forced to continually innovate to succeed, unlike giants who grow complacent and raise prices.
Counterintuitively, a genuinely free market is not a lawless one. It requires government restrictions to prevent predatory multinational corporations from creating monopolies. Without such regulations, monopolies would destroy the fair competition that is the basis of a free market.
Dominant tech platforms lack the market incentive to open their ecosystems. Berners-Lee argues that government intervention is the only viable path to mandate interoperability and break down digital walled gardens, as market forces alone have failed.
App stores justify their market control by claiming they are essential for user safety. Their failure to enforce their own explicit rules against X/Grok provides powerful evidence for antitrust regulators that this justification is a pretext, undermining their entire legal position.
While politicians focus on taxing corporations, the real threat to tech monopolies is breaking them up. Forcing divisions like Google Search, Maps, and YouTube to compete independently dismantles their 'strategic monopoly,' a far more terrifying prospect for them than paying more tax on consolidated profits.
Unchecked capitalism can lead to predatory monopolies like Standard Oil that consolidate power and stifle competition. Government intervention to break up these monopolies, while a dangerous game, is a necessary tool to preserve a competitive market.