The Rise of Chokepoint Capitalism and How Workers Can Defeat It
304 pages
English language
Published Sept. 20, 2022
A call to action for the creative class and labor movement to rally against the power of Big Tech and Big Media
Corporate concentration has breached the stratosphere, as have corporate profits. An ever-expanding constellation of industries are now monopolies (where sellers have excessive power over buyers) or monopsonies (where buyers hold the whip hand over sellers)—or both.
In Chokepoint Capitalism, scholar Rebecca Giblin and writer and activist Cory Doctorow argue we’re in a new era of “chokepoint capitalism,” with exploitative businesses creating insurmountable barriers to competition that enable them to capture value that should rightfully go to others. All workers are weakened by this, but the problem is especially well-illustrated by the plight of creative workers. From Amazon’s use of digital rights management and bundling to radically change the economics of book publishing, to Google and Facebook’s siphoning away of ad revenues from news media, and the Big Three …
A call to action for the creative class and labor movement to rally against the power of Big Tech and Big Media
Corporate concentration has breached the stratosphere, as have corporate profits. An ever-expanding constellation of industries are now monopolies (where sellers have excessive power over buyers) or monopsonies (where buyers hold the whip hand over sellers)—or both.
In Chokepoint Capitalism, scholar Rebecca Giblin and writer and activist Cory Doctorow argue we’re in a new era of “chokepoint capitalism,” with exploitative businesses creating insurmountable barriers to competition that enable them to capture value that should rightfully go to others. All workers are weakened by this, but the problem is especially well-illustrated by the plight of creative workers. From Amazon’s use of digital rights management and bundling to radically change the economics of book publishing, to Google and Facebook’s siphoning away of ad revenues from news media, and the Big Three record labels’ use of inordinately long contracts to up their own margins at the cost of artists, chokepoints are everywhere.
By analyzing book publishing and news, live music and music streaming, screenwriting, radio and more, Giblin and Doctorow deftly show how powerful corporations construct “anti-competitive flywheels” designed to lock in users and suppliers, make their markets hostile to new entrants, and then force workers and suppliers to accept unfairly low prices.
In the book’s second half, Giblin and Doctorow then explain how to batter through those chokepoints, with tools ranging from transparency rights to collective action and ownership, radical interoperability, contract terminations, job guarantees, and minimum wages for creative work.
Chokepoint Capitalism is a call to workers of all sectors to unite to help smash these chokepoints and take back the power and profit that’s being heisted away—before it’s too late.
If you work or buy things, understanding how the market is set today by large corporations is key. We have to fix this broken system. Cory and Rebecca do a great job of explaining why is wrong and how we might be able to fix it.
Plenty of good anecdotes on the way companies use their position as dominent buyers or sellers to manipulate markets, pocket unfair shares of wealth, and generally make life worse for everyone who isn't their execs and shareholders. The collective solutions proposed all seem like reasonable starting points, too—but while I agree with their point that systemic problems require systemic solutions, I don't feel like I left the book with a starting point of how to work towards that change.
Maybe just naming the problem and talking about it is a sound enough starting point. Chokepoint Capitalism is a useful term, evocative and intuitive to understand, but also expansive enough to capture a whole world of corporate corruption. If it bleeds its way into more general discourse, that can only be a good thing.
If you are concerned about the way in which culture is being shaped by technology (and you should be), this book goes deep into the causes and explains how big tech is corrupting open culture in order to make a few billion bucks.
Doctorow is known for his activism in favor of the open web and privacy rights. In this book, with Rebecca Giblin, they describe how the corporate monopolies and monopsonies are strangling the culture industry and especially creators and makers upon whose content and creativity these corporations and platforms rely. And so, we learn a lot about how Amazon, Spotify, Live Nation, and Youtube, among others, have created bottlenecks (or chokepoints, hence the title) between creators and audiences, to the detriment of both. This accomplished through network effects, vertical and horizontal integration, blocking new entrants, regulatory capture, and manipulation of copyright laws, as well as non-compete clauses which lock in workers (as time of writing, FTC chair Lina Khan is proposing to eliminate those, which would be great). The first part of the book describes these mechanisms in clear detail. The second part of the book focuses on potential solutions to …
Doctorow is known for his activism in favor of the open web and privacy rights. In this book, with Rebecca Giblin, they describe how the corporate monopolies and monopsonies are strangling the culture industry and especially creators and makers upon whose content and creativity these corporations and platforms rely. And so, we learn a lot about how Amazon, Spotify, Live Nation, and Youtube, among others, have created bottlenecks (or chokepoints, hence the title) between creators and audiences, to the detriment of both. This accomplished through network effects, vertical and horizontal integration, blocking new entrants, regulatory capture, and manipulation of copyright laws, as well as non-compete clauses which lock in workers (as time of writing, FTC chair Lina Khan is proposing to eliminate those, which would be great). The first part of the book describes these mechanisms in clear detail. The second part of the book focuses on potential solutions to break those chokepoints and restore competition for healthier, more pluralistic, and more competitive cultural markets. Such potential solutions include reform of copyright and antitrust laws, unionization and minimum wage for cultural producers, among other things. The authors specify that, while the focus of the book is the cultural sector, monopolies and monopsonies exist elsewhere in our economies. I gave it 4 stars instead of 5 because it does go into the weeds of the cultural sector, which is sometimes tedious to read, especially in the second part of the book. That being said, it is well worth reading and important.
A great look at how big tech companies create monopolies. What I particularly liked was how it ends the book with some how by discussing how these monopolies can be undone.
