Book Review: Chokepoint Capitalism

This is a review of Chokepoint Capitalism: How Big Tech and Big Content Captured Creative Labor Markets and How We'll Win Them Back, by Rebecca Giblin and Cory Doctorow.

What is chokepoint capitalism? Giblin and Doctorow explain: “Anticompetitive flywheels vary by industry, each chokepoint capitalist seeks to do the same thing: lock in users, lock in suppliers, make markets hostile to new entrants, and, ultimately, use the lack of choice to force workers and suppliers to accept unsustainably low prices.”

 

It is a society where “precious little of the vast wealth generated by art and culture is shared with the people who actually make it”, the authors recognise that this has long been the case, but now there is less and less to share around. They argue that the reason for workers receiving a declining share of the wealth generated by their work is because we have structured society to make rich people richer at everyone else’s expense. This is so largely because of a radical theory of anti-trust, driven by Robert Bork, which limited anti-monopoly regulation to concerns of “consumer welfare”. Bork’s anti-trust approach focused on maximising the short term, mostly in terms of lower prices, rather than promoting competition as an end in itself. 

Reading this book brought to mind the UK Competition and Markets Authority review of the music streaming economy, which essentially found that, since consumers can access so much content for such a low price, the market must be doing a good job for consumers. As this Kat told the DCMS Select Committee at the Streaming Inquiry Update, this is a short-sighted interpretation because it takes a narrow view of the issues and the parameters of their impact: low prices will not support investment and development of a diverse industry, thereby becoming a disadvantage to consumers and society in the longer term. 

The book consists of two parts. Part one is titled ‘Culture has Been Captured.’ It has 11 chapters that explains how big businesses have taken over various sectors. In the words of the authors, it “digs into some of the many ways competition gets smothered within culture markets.” It establishes the anticompetitive impacts of monopolised industries in relation to music, books, news, media, ticketing, and concerts. 

There are excellent reasons to mobilize against Big Tech. It is turning the internet into a surveillance machine, weakening democracies, radicalizing our families and friends and turning communities against one another – all to generate a few extra bucks for shareholders who already have more than enough.

This Kat appreciates a book that not only analyses the problems, but clearly outlines proposals for solutions. Often, she sees 23 chapters on the issues and only a final word on the possible solutions in the conclusions. Not this time. This book dedicates its second half to ‘Breaking Anticompetitive Flywheels’ in eight chapters. It suggests a multifaceted approach from strengthening anti-trust law and actually enforcing current law, to proposals for changing theory to one of solidarity and systemic action, focusing on the distinctive tools available to creative workers such as interoperability, minimum wages, contractual protection, collective action, ownership, and transparency.

 

This book will be of interest to those who work in, think about, write on, or enjoy the creative industries. Legal scholars and policymakers interested in monopolies and the regulation relating to creative industries will find this book particularly motivating. As the authors put it: “For those who work within, or are concerned about, the future of culture, this book is intended to inspire new alliances and modes of thinking. Left unchecked, Big Tech and Big Content will come up with positions that keep both industries’ shareholders happy at everyone else’s expense.”

Ways to read this book:

The DRM-free ebook: buy direct from Cory’s own webstore, or any major ebook supplier. 

The independently, ethically produced and distributed audiobook:  You can buy the full audiobook from Libro.fm (which supports local bookstores with a portion of each sale), Google Play, and other DRM-free suppliers. 

The physical version: support your local independent bookstore, all major online retailers, or follow the links on the website here.

Readers are reminded that they can now vote in the annual IPKat Book of the Year Awards, details on how to vote are here.