The challenges of platform capitalism

understanding the logic of a new business model

Abstract

Digital platforms are shaping our world, yet their critical analysis often ignores the core of their operation: they are, first and foremost, economic actors within capitalism. Their business model is to bring together different groups, but their true commodity is data. Platforms are designed to extract and use data, monitoring interactions and consolidating power. This obsession with data leads to conflicts with privacy, which are inherent to platform capitalism, not accidental. The appetite for data also drives the constant expansion of these companies, which acquire others and diversify into new areas. Competition for data leads them to converge in their operations and monopolize, benefiting from network effects. The sharing economy is an unsustainable model. They outsource costs and exploit workers, operating at a loss and relying on venture capital. As regulations advance and workers mobilize, these platforms are likely to bankrupt or transform. The challenge is to understand and combat the power of this data-centric model.