The Fallacy of Techno-Feudalism

Summary

The digital age brings a new economic epoch. Many say that traditional capitalism is ending, and by many, I mean plenty. It is said to be a result of the change of the social fabric and advance of technology – intertwined. The core of this is happening in the digital domain, or better said informational domain and through digital platforms, which will soon move into synthetic virtual spaces as a next step.According to the former finance minister of Greece, Yanis Varoufakis, value extraction has increasingly shifted away from markets and onto large digital platforms, which no longer operate like oligopolistic firms, but rather like private fiefdoms or estates.The digital domain has expanded beyond communication and commerce infrastructure. Because an ecosystem of economic and social interaction is getting more and more complex, it has become a battleground for economic and social power. The digital realm – the realm of information and data – interconnects digital spaces governed by technology and those behind it. Some see them as the architects and custodians of a new equalizing infrastructure, others as behemoths that rule over the digital space with their algorithmic dictatorship. So what are they – the builders or techno-feudal lords?In this article I will review the definitions and arguments, and present an insight, or perhaps a counter-insight, that highlights some major characteristics of today’s digital economy that I don’t necessarily see as feudal.What Is Feudal OrderFirstly, let’s define feudalism:Feudalism was a socio-economic and political system that flourished (mostly) in medieval Europe. It is characterized by a tiered structure of land holding and obligations between a king or monarch at the top and various lower tiers of lords, vassals, and serfs.The core of this system lied in the exchange of land (fief) for military and other services. A monarch or a high-ranking noble would grant land to lesser nobles, knights, or vassals in exchange for their loy...