The Dark Side of Tech: How Big Companies Exploit Consumers

In recent times, the disillusionment with big tech companies has become more palpable. From Amazon to Uber, Netflix to Facebook, and Instagram, it's evident that these tech giants are undergoing significant changes — and not for the better. The disillusionment stems from a pattern of behavior that prioritizes profit over user experience, a phenomenon well-articulated by Corey Doctorow with the term 'ification'. This article aims to shed light on the manipulative tactics these companies employ and how they affect consumers.

The Birth and Betrayal of Consumer Trust

When tech companies like Uber first arrived on the scene, they offered revolutionary services that significantly improved upon the existing options. Uber, for instance, provided a more convenient, cheaper, and better-quality service than traditional taxis. This initial phase is crucial for tech companies to attract users by solving a key problem and offering surplus value.

The Shift in Focus: From User to Profit

However, once these companies establish a user base, their focus shifts. Uber, for example, began by lavishing drivers with bonuses, surge pricing benefits, and a substantial share of the earnings. This shift is part of a broader strategy to monopolize the market by binding both users and suppliers to the platform. Eventually, the surplus once offered to users and suppliers gets redirected to the company's coffers, especially as these companies go public and face pressure from shareholders to maximize short-term profits.

Tiering and Subscription: A Double-Edged Sword

A common tactic employed by these companies is 'tiering' — creating multiple service levels at varying price points. While this might seem like a boon for consumer choice, it often degrades the base service quality and forces consumers to pay more for what used to be standard service. Take Netflix: the introduction of a 4K tier and an ad-supported tier complicates what was once a simple and revolutionary subscription model.

The Subscription Trap

Subscriptions, in theory, offer a way to spread out costs and ensure ongoing service improvements. However, in practice, big tech uses subscriptions to bind consumers to their platforms, often providing less value than before. Amazon Prime's evolution is a case in point, where promised benefits like one-day delivery become increasingly conditional or require additional fees.

The Platform Fee Predicament

Another significant issue is the opaque 'platform fees' charged by services like Uber Eats, which inflate the cost of services to exorbitant levels. These fees, coupled with subscription costs, not only exploit consumers but also obscure the true price of services.

Dark Patterns and Consumer Exploitation

Big tech companies also employ 'dark patterns' — deceptive user interface designs meant to trick consumers into making unintended decisions, such as unknowingly subscribing to services or facing hurdles when trying to cancel subscriptions. These tactics are becoming increasingly common, making it difficult for users to navigate these platforms without being manipulated.

What Can Be Done?

The issue at hand extends beyond individual company practices to reflect a broader systemic problem in the tech industry. While consumers can take steps like carefully managing subscriptions or rotating services to avoid overpaying, larger policy changes are necessary. These might include regulations to ensure fair competition, transparency in pricing, and protections against exploitative practices.

As we navigate this era of big tech dominating our digital lives, it's crucial to stay informed and critical of the services we use. While tech companies have brought about revolutionary changes, their current trajectory highlights a need for a recalibration of values — one that puts consumers and their experiences at the forefront.

For more insights into how big tech companies are changing and the impact on consumers, check out the original video discussion here.