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The Jordan Harbinger Show

1280: Cory Doctorow | Why Everything Got Worse and What to Do About It

93 min episode · 3 min read
·

Episode

93 min

Read time

3 min

Topics

Startups, Fundraising & VC, Leadership

AI-Generated Summary

Key Takeaways

  • Google Search Degradation: In 2019, Google deliberately made search worse to increase revenue. Internal memos show executives turned off features like auto spell-check, context awareness, and query stemming to force users to search two to three times per query, generating multiple ad impressions. The top search result now costs 29% more than the best match, which typically appears 17 places down.
  • Amazon Junk Fees: Amazon charges merchants 50-60% of every sale in junk fees, up from 45-51% when Doctorow wrote his book. This includes payola-style auction fees for search placement, where sellers bid to appear in top results. These costs get passed to all consumers through most-favored-nation clauses that prevent merchants from offering lower prices elsewhere, creating an economy-wide Amazon tax.
  • Apple-Google Search Deal: Google pays Apple over $20 billion annually to not create a competing search engine, making it the largest deal either company does. This payment ensures Google maintains 90% search market share by preventing the only company with resources to compete from entering the market. The deal is negotiated directly between CEOs and effectively purchases Apple's non-competition.
  • Digital Rights Management as Felony: Section 1201 of the DMCA makes bypassing access controls a felony with five-year prison sentences and $500,000 fines. This prevents security researchers from auditing devices like Medtronic ventilators and pacemakers for vulnerabilities, blocks consumers from using purchased products as they wish, and enables manufacturers to create new felonies simply by adding DRM.
  • Switching Cost Engineering: Companies deliberately engineer high switching costs to trap users. Facebook bought Instagram and WhatsApp to eliminate competition after Zuckerberg wrote that it's better to buy than compete. Number portability regulations for phone carriers demonstrate how policy can lower switching costs, but similar protections don't exist for social media or most tech platforms.

What It Covers

Corey Doctorow explains enshitification, his term for how tech platforms systematically degrade user experience. The conversation examines how companies like Google, Facebook, Amazon, and Apple use monopoly power, switching costs, and legal barriers like Section 1201 of the DMCA to trap users while extracting maximum value through junk fees, surveillance, and predatory pricing strategies.

Key Questions Answered

  • Google Search Degradation: In 2019, Google deliberately made search worse to increase revenue. Internal memos show executives turned off features like auto spell-check, context awareness, and query stemming to force users to search two to three times per query, generating multiple ad impressions. The top search result now costs 29% more than the best match, which typically appears 17 places down.
  • Amazon Junk Fees: Amazon charges merchants 50-60% of every sale in junk fees, up from 45-51% when Doctorow wrote his book. This includes payola-style auction fees for search placement, where sellers bid to appear in top results. These costs get passed to all consumers through most-favored-nation clauses that prevent merchants from offering lower prices elsewhere, creating an economy-wide Amazon tax.
  • Apple-Google Search Deal: Google pays Apple over $20 billion annually to not create a competing search engine, making it the largest deal either company does. This payment ensures Google maintains 90% search market share by preventing the only company with resources to compete from entering the market. The deal is negotiated directly between CEOs and effectively purchases Apple's non-competition.
  • Digital Rights Management as Felony: Section 1201 of the DMCA makes bypassing access controls a felony with five-year prison sentences and $500,000 fines. This prevents security researchers from auditing devices like Medtronic ventilators and pacemakers for vulnerabilities, blocks consumers from using purchased products as they wish, and enables manufacturers to create new felonies simply by adding DRM.
  • Switching Cost Engineering: Companies deliberately engineer high switching costs to trap users. Facebook bought Instagram and WhatsApp to eliminate competition after Zuckerberg wrote that it's better to buy than compete. Number portability regulations for phone carriers demonstrate how policy can lower switching costs, but similar protections don't exist for social media or most tech platforms.
  • Growth Stock Paradox: Tech companies maintain artificially high price-to-earnings ratios by signaling growth potential, allowing them to create stock by typing zeros into spreadsheets rather than earning cash. When Facebook experienced slightly lower growth in 2022, the company lost $260 billion in market value in one day, explaining why companies desperately pivot to metaverse, AI, and other adjacencies.
  • Alternative Search Solutions: Kagi, a $10 monthly search service, delivers dramatically better results than Google by using Google's index through API access and resorting results. This proves Google deliberately surfaces poor results for revenue rather than technical limitations. The existence of superior results from a small startup using the same underlying data demonstrates intentional degradation.

Notable Moment

Doctorow reveals that Polish train manufacturer Newag booby-trapped locomotives to brick themselves when taken to competitor service yards or left immobilized for days. The company charged €20,000 to remotely unlock trains, claiming remote diagnostics. Security researchers who discovered this sabotage now face lawsuits under copyright law for revealing how they accessed the firmware, demonstrating how anti-circumvention laws protect corporate malfeasance.

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Episode Transcript

Episode is sponsored in part by LinkedIn. Hiring for a small business is one of those things that sounds simple until you actually do it because you're not just filling a seat, you're choosing somebody who's gonna affect your team, your customers, your culture, and your stress level. And when you get it wrong, you feel it immediately. Cost you time, momentum, and way more money than people want to admit. That's why LinkedIn Hiring Pro is so useful. It's basically like having a hiring partner built for small teams, something that helps you hire with confidence without turning hiring into a second job. You can describe what you need in plain language and it helps streamline the whole process. Drafting the job, surfacing the right candidates, shortlisting them, even handling AI powered interviews for the initial screening step. So instead of spending hours buried in applications, you spend more time talking to the people who actually have a real shot at being a great hire. And it's fast. Nearly 60% of hirers find a candidate to interview within a week. So if you wanna save time without sacrificing quality and you wanna hire right the first time, check out LinkedIn Hiring Pro. Hire right the first time. Post your first job and get a $100 off toward your job post at linkedin.com/harbinger. That's linkedin.com/harbinger. Terms and conditions apply. Welcome to the show. I'm Jordan Harbinger. On the Jordan Harbinger Show, we decode the stories, secrets, and skills of the world's most fascinating people and turn their wisdom into practical advice that you can use to impact your own life and those around you. Our mission is to help you become a better informed, more critical thinker through long form conversations with a variety of amazing folks from spies to CEOs, athletes, authors, thinkers, performers, even the occasional drug trafficker, four star general, or Hollywood filmmaker. And if you're new to the show or you're looking for a handy way to tell your friends about it, I suggest our episode starter packs. These are collections of our favorite episodes on topics like persuasion and negotiation, psychology, geopolitics, disinformation, China, North Korea, crime and cults, and more. That'll help new listeners get a taste of everything we do here on the show. Just visit jordanharbinger.com/start or search for us in your Spotify app to get started. Today, if you've ever looked at the Internet and thought, wow, this used to be less awful, congratulations. You have noticed enshitification. Today, we're discussing why every platform you love eventually turns into a flaming dumpster full of pop ups, scams, knock off backpacks from brands that are named like a cat just walked across the keyboard, and a subscription fee just to use the thing you already bought or that you thought you bought, but now I guess it turns out you're renting it. I don't know. Facebook promised they'd never spy on you, and now spying is their business model. Amazon didn't just …

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Books

Tools

  • KagiRecommended
    Kagi, a $10 monthly search service, delivers dramatically better results than Google by using Google's index through API access and resorting results. This proves Google deliberately surfaces poor results for revenue rather than technical limitations.

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