Skip to main content

Silicon Valley tech firms exacerbating income inequality, World Bank warns | Technology | The Guardian

The economics of the internet favor natural monopolies, the absence of a competitive business environment can result in more concentrated markets, benefiting incumbent firms. Not surprisingly, the better educated, well connected, and more capable have received most of the benefits – circumscribing the gains from the digital revolution.”

“Regulatory puzzles are posed by firms such as Amazon, Facebook, and Google ... These firms confound conventional competition law because they do not act as traditional monopolies. The risk is that states and corporations could use digital technologies to control citizens, not to empower them,” it continued.

It's not just the economics of the internet, but the economics of networks in general which favour natural monopolies; indeed, a network without an organisational monopoly is a broken network (cf. privatised UK railway system). All infrastructures are networks, and infrastructure considered collectively is a network of networks, a metasystem. The only way to harness the full utility of any network is to allow it an organisational monopoly. The only way to constrain an organisational monopoly is collective ownership. Farcebork et al are monopoly interface protocols, not themselves networks; they merely organise and instrumentalise the physical connectivity of the infrastructures upon which they depend. Protocols are best regulated by the careful maintenance of system standards in the infrastructural layer-- another process which requires an effective organisational monopoly.

Renationalise. Now.