Platform Enshittification: Three Stages of Value Extraction and Policy Failure

Morning Brew Daily · December 24, 2025 · Listen to Original Episode →

Original Title:

TL;DR

"Enshittification" describes a three-stage platform decay process where initial user value is eroded to extract profit, first from users, then business customers, and finally leaving only a minimal value to sustain the platform itself.
The erosion of competition and regulation, driven by decades of neoliberal economic policy, enables platforms to profit from mistreating users and suppliers without market repercussions.
Platforms like Facebook initially attract users with value, then leverage network effects and collective action problems to lock them in, enabling subsequent value extraction and service degradation.
Business customers, such as advertisers and publishers, are also locked into platforms through dependency, leading to increased costs and reduced effectiveness as the platform prioritizes its own profit.
The "enshittification" of sectors beyond tech, like nursing, occurs as digitization enables platformization and data exploitation to extract value and suppress wages, mirroring the dynamics seen in online services.
Systemic change to combat "enshittification" requires collective action and policy reform, rather than individual consumption choices, to alter the economic environment that incentivizes platform decay.
Implementing a "Ulysses pact" through structural choices like open distribution systems, unionization, or worker cooperatives makes future compromises harder and safeguards against gradual service degradation.

Deep Dive

The current state of major tech platforms, characterized by "enshittification," represents a deliberate, multi-stage process where companies initially attract users with valuable services, then leverage that user lock-in to extract value for business customers, and finally harvest all value for themselves, leaving users and businesses with a diminished experience. This decay is not accidental but is driven by a policy environment that incentivizes rather than punishes such exploitative behavior, leading to systemic market failures where platforms profit from mistreating their stakeholders.

The enshittification process unfolds in three distinct stages. Initially, platforms act in the best interest of their end-users to foster growth and lock them in--think of early Facebook’s appeal to users dissatisfied with MySpace by positioning itself as a non-surveillance alternative. Once users are sufficiently invested, often due to collective action problems that make mass exodus difficult, the platform shifts to stage two. Here, it begins to degrade the end-user experience to serve business customers, such as advertisers, who are lured in with promises of targeted access to the now-locked-in user base. For instance, Facebook’s algorithm began prioritizing advertisers’ reach, pushing down organic content users genuinely wanted to see. In the final stage, the platform turns on these business customers as well, as they too become dependent on the platform’s user base and are subject to increasing costs and reduced effectiveness. This culminates in the platform extracting nearly all value for shareholders and executives, leaving behind only a minimal functional residue to maintain user and business engagement. This cycle is exemplified by Facebook’s transformation from a user-centric social network to an advertising behemoth that prioritizes engagement metrics over genuine user experience.

The underlying cause of this systemic decay is a shift in the policy and regulatory environment, particularly in the last four decades. Neoliberal economic theories have eroded traditional antitrust enforcement, leading to the acceptance of monopolies and cartels that stifle competition. This lack of competition removes a primary market discipline, allowing companies to engage in exploitative practices without fear of losing customers to rivals. Furthermore, regulatory capture, where industries influence the regulators meant to oversee them, means that government intervention is often ineffective or even complicit. This creates an "enshitogenic" policy environment where companies that mistreat users and suppliers actually gain market advantage, a direct inversion of traditional market principles where poor performance leads to financial decline. For example, Google’s dominance in search is maintained not just by its product but by substantial payments to Apple, a practice sanctioned by recent judicial interpretations that prioritize the status quo over robust competition, viewing emerging AI as a competitor rather than an extension of existing platform dynamics.

The solution to enshittification lies not in individual consumer choices but in systemic policy reform driven by collective action. Since individual purchasing power is insufficient against consolidated corporate power, citizens must engage in organized movements to alter the policy environment that enables these exploitative practices. This involves joining advocacy groups like the Electronic Frontier Foundation, participating in local mutual aid and labor organizations, and pushing for legislative changes that restore competition and strengthen regulation. Moreover, creating "Ulysses pacts"--pre-commitments that make future compromises harder--can help organizations resist the gradual slide into exploitative practices. This can include adopting open distribution systems (like RSS feeds), structuring as worker cooperatives or B-corps, and utilizing irrevocable open licenses for content. While technology itself is not inherently bad, its current trajectory is shaped by these policy failures, necessitating a collective effort to steer its development towards serving public interest rather than solely corporate profit.

Action Items

Create a Ulysses pact: Implement irrevocable open licenses for content archives to prevent future compromise of material.
Design distribution system: Establish an open RSS feed for content to avoid platform paywalls and maintain user access.
Draft worker co-op structure: Explore transitioning to a worker cooperative model to empower employees and resist external pressure.
Join a collective action group: Participate in organizations like the EFF or local mutual aid groups to influence policy environment.

Key Quotes

"Has anyone at Tripadvisor ever been on a trip? This is the most enshittified website I've ever used."

Cory Doctorow explains that "enshittification" originated as a spontaneous, albeit vulgar, critique of a frustrating user experience. This quote highlights how the term's initial impact came from its combination of technical complaint and relatable vulgarity, making it memorable and effective for describing platform decay.

"So, enshittification, it's got kind of got three parts, right? One is like a description of how platforms go bad, one is a theory about why they're going bad, and one is a proposal for how to make them better."

Cory Doctorow outlines the structure of his analysis of "enshittification," indicating it's not just a complaint but a framework. This quote shows that Doctorow's work involves describing the phenomenon, explaining its underlying causes, and offering potential solutions.

"And stage one, platforms are good to their end users, but they're also trying to find a way to lock those end users in. And then once the users are locked in, they make things worse for those end users in stage two."

Cory Doctorow details the initial stages of "enshittification," explaining the strategic progression of platform decay. This quote illustrates how platforms initially attract users with quality service and then leverage that user base, once locked in, to degrade the experience for their own benefit.

"And so, enshittification is not just when a platform goes bad, it's when a platform goes bad and does well. And so you could see two platforms both of which were doing bad things to you, but I would argue that it's not really enshittifying unless they thrive as a consequence."

Cory Doctorow clarifies the critical distinction of "enshittification," emphasizing that it involves not only a decline in quality but also the platform's subsequent success. This quote highlights that the term specifically applies when a company's mistreatment of users leads to market gains, rather than failure.

"So, you're not going to like make your consumption choices change this by all means, like make consumption choices that make you happy, patronize your local bookstore instead of Amazon, or like get off Twitter and onto Mastodon or Blue Sky if that's what you prefer, but don't think that it's going to make a systemic change."

Cory Doctorow argues against individual consumer choices as a solution to "enshittification," stressing the need for collective action. This quote suggests that while personal preferences are valid, systemic change requires broader, policy-focused movements rather than isolated purchasing decisions.

"So, if you want to prevent yourself from compromising, you have to make compromise harder for yourself in the future. So, in behavioral economics, we have this idea called the Ulysses Pact."

Cory Doctorow proposes a strategy for avoiding "enshittification" by implementing pre-commitment mechanisms, drawing from behavioral economics. This quote explains that individuals and organizations can safeguard against future compromises by proactively removing certain options, similar to Ulysses tying himself to the mast.

Resources

External Resources

Books

"Enshittification: Why Everything Suddenly Got Worse and What to Do About It" by Cory Doctorow - Mentioned as the source of the term "enshittification" and its explanation.
"Distraction" by Bruce Sterling - Mentioned as a prescient novel about high-tech networked politics.

Articles & Papers

"The American Prospect" - Mentioned for an article by David Dying critiquing the dismissal of antitrust cases based on the existence of competitors.

People

Cory Doctorow - Author of "Enshittification," coined the term, and discussed his theories and solutions.
Bruce Sterling - Author of the novel "Distraction."
Mark Zuckerberg - Mentioned in relation to Facebook's "enshittification" process and its shift towards the metaverse.
Rupert Murdoch - Mentioned as the former owner of MySpace, contrasted with Facebook's initial pitch.
Masayoshi Son - Mentioned as a venture capitalist at SoftBank who funded Uber.
Adam Smith - Mentioned in relation to the theory of markets and self-interest motivating good products.
Reagan - Mentioned in relation to neoliberal economists and their influence on competition and antitrust policy.
John D. Rockefeller - Mentioned in relation to the historical breakup of Standard Oil.
Elon Musk - Mentioned as an effect of the policy environment, not its cause.
Tim Cook - Mentioned in relation to Apple's control over apps and its revenue from Google.
Sacha Nadella - Mentioned in relation to Microsoft's potential knowledge of user data.
Sundar Pichai - Mentioned in relation to Google's potential knowledge of user data.
Lily Tomlin - Mentioned for a Saturday Night Live sketch about the Bell System.
David Dying - Author of an article in The American Prospect.

Organizations & Institutions

Electronic Frontier Foundation (EFF) - Mentioned as a digital rights group where Cory Doctorow works and a resource for involvement.
SoftBank - Mentioned as the venture capital firm run by Masayoshi Son that funded Uber.
Procter & Gamble - Mentioned for zeroing out its surveillance advertising budget in 2017.
Open to the Public Investing Inc. - Mentioned as a brokerage service provider.
FINRA - Mentioned as a member organization for Open to the Public Investing Inc.
SIPC - Mentioned as a member organization for Open to the Public Investing Inc.
Public Advisors - Mentioned as the provider of the Generated Assets tool.
Fidelity - Mentioned in relation to its app for recurring investments.
Amazon Ads - Mentioned as a way for telecom brands to reach audiences.
Tito's Handmade Vodka - Mentioned as a high-quality spirit and a company known for giving back.
Liberty Mutual - Mentioned in relation to car insurance.

Websites & Online Resources

public.com/morningbrew - Mentioned as a place to get started with Public.
public.com/disclosures/ga - Mentioned for disclosures related to Generated Assets.
public.com/disclosures/matchprogram - Mentioned for terms of the match program.
swap.fm/l/mbd-note - Mentioned as a link to listen to Morning Brew Daily.
youtube.com/@MorningBrewDailyShow - Mentioned as a link to watch Morning Brew Daily.
megaphone.fm/adchoices - Mentioned for ad choices.
tripadvisor.com - Mentioned as an example of an "enshittified" website.
myspace.com - Mentioned as a rival social media service to Facebook.
eff.org - Mentioned as the website for the Electronic Frontier Foundation.
mastodon.social - Mentioned as an alternative to Twitter.
blueskyweb.xyz - Mentioned as an alternative to Twitter.
libertymutual.com - Mentioned as a website for car insurance.
advertising.amazon.com - Mentioned for information on Amazon Ads.

Other Resources

Enshittification - A term coined by Cory Doctorow to describe the decay of online platforms.
Adversarial Interoperability - A technical term discussed as a bedrock principle for user control over products.
Competitive Compatibility (Comcom) - An alternative term proposed for adversarial interoperability.
Collective Action Problem - An economic concept used to explain how users become locked into platforms.
Generated Assets - An interactive analysis tool by Public Advisors that allows users to create investable indexes.
Recurring Investments - A feature of the Fidelity app for investing in stocks and ETFs on a schedule.
First-party insights - Data spanning streaming, browsing, and shopping signals used by Amazon Ads.
Ulysses Pact - A concept from behavioral economics where one takes a course of action off the table in anticipation of future weakness.
B Corp - A type of corporate structure mentioned as a way to prevent compromise.
Worker Co-op - A type of corporate structure mentioned as a way to prevent compromise.
Open Licenses - Licenses for material that are irrevocable.
Uber for Nursing - A term used to describe digitized nursing services.
Desperation Premium - A concept where nurses with more credit card debt are paid lower wages.
Antitrust - Laws designed to prevent monopolies.
Neoliberal Economists - Economists associated with Reagan who influenced competition and antitrust policy.
Regulatory Capture - The phenomenon where companies influence regulators to work for them instead of the public.
Sherman Act - The first antitrust act in the US, passed in 1890.
Standard Oil - A company historically broken up under antitrust laws.
The Odyssey - A classical epic poem.