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Silicon Valley Values Shift To Customersploitation

theodp writes "Bill Davidow is the real Silicon Valley deal. Commenting on how Silicon Valley has changed over the decades, Davidow is not impressed, dishing out harsh words for Facebook, Apple, Google, and others. 'When corporate leaders pursue wealth in the winner-take-all Internet environment,' concludes Davidow, 'companies dance on the edge of acceptable behavior. If they don't take it to the limit, a competitor will. That competitor will become the dominant supplier — one monopoly will replace another. And when you engage in these activities you get a different set of Valley values: the values of customer exploitation.'"

244 comments

  1. "Customersploitation" by Chrisq · · Score: 4, Insightful

    come on - give me a break.

    1. Re:"Customersploitation" by RivenAleem · · Score: 1

      come on - give me a break.

      After the r and before the s?

    2. Re:"Customersploitation" by Quiet_Desperation · · Score: 4, Funny

      Sufferin' succotash, my brain will *only* imagine the word "Customerspliotation" as being spoken by Daffy Duck in a spray of saliva.

    3. Re:"Customersploitation" by Anonymous Coward · · Score: 0

      That's not as bad as Blaxsploitation, now is it? I refer to the nomenclature, not the implication or the 70s movies.

    4. Re:"Customersploitation" by ackthpt · · Score: 1

      come on - give me a break.

      Really. They've been working toward this goal for years. There was some doubt whether they'd achieve it after the dotcom bubble burst in 2000. It's called "Making A Profit" which only a few have flirted at for years.

      --

      A feeling of having made the same mistake before: Deja Foobar
    5. Re:"Customersploitation" by Guppy06 · · Score: 1

      You're confusing Daffy with Sylvester.

    6. Re:"Customersploitation" by Anonymous Coward · · Score: 0

      The problem is, in many cases users aren't the customer - they're the product. So technically it isn't customer exploitation, but user exploitation for the benefit of their *real* customers.

    7. Re:"Customersploitation" by Anonymous Coward · · Score: 0

      The real problem with silicon valley is the fact they shipped it all off to Asia! This article is pure crap, but the dumb idiots on here will bite on the anti-making money big business theme.

    8. Re:"Customersploitation" by thetoadwarrior · · Score: 1

      awesome counter argument.

    9. Re:"Customersploitation" by dwightk · · Score: 1

      ...just what we need, another clunky portmanteau.

      --
      Like anyone can even know that
    10. Re:"Customersploitation" by Quiet_Desperation · · Score: 1

      You're desthpicable.

  2. The way of nature. by Anonymous Coward · · Score: 0

    How does this differ from any other industry/field? The strong destroy the weak. The strong hold onto power.

    1. Re:The way of nature. by kheldan · · Score: 3

      In a better world, we're more than just slightly smarter animals. More and more that's all people seem to be, is animals.

      --
      Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
    2. Re:The way of nature. by Moofie · · Score: 1

      When was this better world?

      --
      Why yes, I AM a rocket scientist!
    3. Re:The way of nature. by ShanghaiBill · · Score: 0

      When was this better world?

      In the 1950s, before sex, drugs and rock-n-roll had been invented. Those where the happy days of "The Fonz" and Richie Cunningham. In those days all children where honor students, no one tolerated any sort of bigotry, and the world enjoyed peace and harmony. Everything was perfect.

      Welcome to the "Golden Age" meme. All problems with human nature are new. For some reason people today have become selfish. We didn't have that in the old days. Kids are getting dumber and dumber (despite overwhelming evidence that they are not), our schools are failing (not like the good schools we had back in the old days). Everything today is getting worse and worse.

    4. Re:The way of nature. by Anonymous Coward · · Score: 0

      When you rush to relieve them of any sense of person responsibility via government programs, do not be surprised when they behave irresponsibly and demand that government clean up the resulting mess.

      But I know, libertarian philosophy is passé in these parts - to karma whore properly, I should say, "When you refuse to allow the government to take care of people as if they're babies, they act out and behave poorly, like babies, underscoring the NEED for government to manage and control every important aspect of our lives!"

      Will that get me a +5 Insightful, I wonder?

    5. Re:The way of nature. by element-o.p. · · Score: 1

      Even nostalgia ain't what it used to be.

      Now get off my lawn!

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    6. Re:The way of nature. by kheldan · · Score: 2

      Oh for fuck's sake.. I wasn't being nostalgic, damnit, I was being theoretical!

      Humans are capable of some pretty amazing things.. but they're also capable of some of the most senseless, animalistic, disappointing things imaginable. What I was referring to was a theoretical human race that actually rises above the stupid animal they tend to be!

      --
      Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
  3. Customerspliotation? by sanosuke001 · · Score: 4, Informative

    Customerspliotation? Are you fucking kidding me? Blogosphere was bad enough. Internet, stop making up stupid words.

    --
    -SaNo
    1. Re:Customerspliotation? by gmuslera · · Score: 1

      would you prefer cyberslavery?

    2. Re:Customerspliotation? by idontgno · · Score: 4, Funny

      Oh, it wasn't the Internet (particularly). The portmanteau bastardized blechery in the summary and title here aren't in TFA at all.

      It was just world-famous Slashdot editorial practice at work. They can't rein in dupes, create an unbiased and non-sensationalist headline, or fix actual errors in copy from submitter (or themselves)... but the sure as hell can coin pointless and cringe-inducing neologisms.

      Slashdot editing at its shining best.

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
    3. Re:Customerspliotation? by Anonymous Coward · · Score: 1

      How do you propose that this be best handled in a post-Columbine world?

    4. Re:Customerspliotation? by mcgrew · · Score: 1

      Customerspliotation? Are you fucking kidding me? Blogosphere was bad enough.

      You'd hate my stratodoober then!

      I have to agree about Customerspliotation and Blogosphere. The guy who coined "blogosphere" got what he deserved, last I heard he was homeless. Lets hope whatever dimwit coined customerspliotation comes to his senses, but I doubt it.

    5. Re:Customerspliotation? by Anonymous Coward · · Score: 0

      1999 called. But not because it wants its criticism of Jon Katz back. It just called to say hi.

    6. Re:Customerspliotation? by Anonymous Coward · · Score: 0

      Customerspliotation? Are you fucking kidding me?

      I know! It's like they think that the people who create accounts on facebook and gmail are the customers and not the product!

    7. Re:Customerspliotation? by Quiet_Desperation · · Score: 4, Funny

      Or a neoportmanteaulogism.

    8. Re:Customerspliotation? by pedrop357 · · Score: 1

      Did you tell them about 9/11?

    9. Re:Customerspliotation? by TapeCutter · · Score: 4, Funny

      portmanteau bastardized

      Is that something one would do with hot grits?

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    10. Re:Customerspliotation? by Anonymous Coward · · Score: 0

      It's just more slashditzation.

    11. Re:Customerspliotation? by hoggoth · · Score: 1

      I thought we are in a post-9/11 world. Shit. Now I have to go and rethink my positions on everything.

      --
      - For the complete works of Shakespeare: cat /dev/random (may take some time)
    12. Re:Customerspliotation? by Anonymous Coward · · Score: 0

      I'm not sure which is more disturbing - the word you just coined, or the fact that you came up with it.

    13. Re:Customerspliotation? by cpu6502 · · Score: 0, Troll

      I've seen this word before. Usually in liberal blogs that view everything profitable as "evil".

      Ya know, it's not really possible for a company to exploit you if you don't buy their product. Like the Comcast cable I don't buy. Or the shiny new SUV I didn't buy. Or the $200 kindle fire I didn't buy. Or the hulu I didn't subscribe to. And so on. Companies can only rip-you-off if you play their game..... so don't play the game and they can't touch you.

      Unless the idiot Democratic Congress rams-through a TARP bailout and Corporate Welfare "stimulus" as law. Government is the real danger because it can take your money against your will.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    14. Re:Customerspliotation? by manicb · · Score: 1

      In fairness, *sploitation is a pretty accepted formula in exploitation films. Fairly amusing list in the index of this page: http://en.wikipedia.org/wiki/Exploitation_film

      One could argue that they are making an insightful point by drawing an ingenious parallel between the exploitation of trends and base desires with the rejection of artistic merit for by film-makers for public consumption to the exploitation of the public's addiction to internet services in order to make money out of advertisers who... wait, this isn't parallel at all. It makes the exploitation film makers look like the good guys.

    15. Re:Customerspliotation? by dkleinsc · · Score: 1

      Actually, it's a new film genre, along with blaxsploitation, sexsploitation, mexsploitation, etc.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    16. Re:Customerspliotation? by Anonymous Coward · · Score: 0

      Not CustomerSPLIOTation
      it's CustomerSPLOITation

      You're adding on an entire syllable.

      But yes, Customersploitation is a terrible word for a terrible trend. Very fitting, imo

    17. Re:Customerspliotation? by Anonymous Coward · · Score: 0

      Yes, actually.

    18. Re:Customerspliotation? by Quiet_Desperation · · Score: 1

      So it's kind of an unknown. A mystery between two sides.

      A dicryptoneoportmanteaulogismchotomy, if you will.

    19. Re:Customerspliotation? by element-o.p. · · Score: 1

      Doesn't Fender already have a trademark on that term? :P

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    20. Re:Customerspliotation? by element-o.p. · · Score: 1

      Moderated "Troll?" Really? I would have moderated him "Insightful" myself...

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    21. Re:Customerspliotation? by C_amiga_fan · · Score: 1

      quote>"Troll?" Really? I would have moderated him "Insightful"...

      Several someones got butt-hurt because of saying Piratebay owners deserved to be fined for copying movies/song/etc, and now they're going through and modding-down all the cpu6502 posts (regardless of content).

      --
      FREE magazine : http://clarkesworldmagazine.com/prior/
    22. Re:Customerspliotation? by Anonymous Coward · · Score: 0

      You can repeat all you want all the lies about why you get modded down, but it won't make any of them true.

    23. Re:Customerspliotation? by icebraining · · Score: 1

      So, what product did people without an account buy from Facebook so that they could track their every move across the web?

      What product did people buy from BP so that made them get hit by the oil spill?

      It's a nice dream, but far from reality. You can be fucked and exploited by companies - as well as individuals - regardless of whether you bought something from them or not.

    24. Re:Customerspliotation? by mcgrew · · Score: 1

      No, they have a trademark on a Stratocaster. If you smoke pot on a mountain, it will get you more stoned than at sea level. The stratodoober is like smoking a doobie in the stratosphere. Although I have no more idea how one works than Gene Roddenberry knew how a warp drive worked.

    25. Re:Customerspliotation? by element-o.p. · · Score: 1

      Apparently, I'd better not quit my day job to become a comedian...

      Incidentally, I did enjoy the short story in your original link -- had a similar feel to some of Arthur C. Clark's short stories, I thought. Well done, sir!

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    26. Re:Customerspliotation? by mcgrew · · Score: 1
  4. ok, like IBM and others didn't exploit customers by alen · · Score: 1

    PC's caught on was because IBM and other "enterprise" suppliers charged ridiculous amounts for their hardware and locked in customers with support contracts and being the only source for spare parts and upgrades

  5. Duh by Anonymous Coward · · Score: 5, Insightful

    The incentive to create a business is to make money. Once your market saturation crosses a tipping point, the only way to further increase profits is to exploit, rather than serve your market. So you engage in monopolization, rent-seeking, and so on.

    This is how business has always worked. This is an entirely predictable outcome of basic human nature. It should not be surprising at all. Nor, for the most part, should it be upsetting. We should simply expect that once the businesses get huge like this, we will have to either break them up or heap some government regulation on them in order to protect ourselves from them. We will *always* have to do this, so, let's get busy.

    1. Re:Duh by mfh · · Score: 1, Informative

      Once your market saturation crosses a tipping point, the only way to further increase profits is to ADAPT

      FTFY

      --
      The dangers of knowledge trigger emotional distress in human beings.
    2. Re:Duh by Braino420 · · Score: 1

      We should simply expect that once the businesses get huge like this, we will have to either break them up or heap some government regulation on them in order to protect ourselves from them. We will *always* have to do this, so, let's get busy.

      Government regulation creates monopolies due to regulatory capture. A natural monopoly is limited in its ability to raise prices due to potential and indirect competition. Government monopolies on the other hand...

      More info can be found in The Machinery of Freedom chapter Monopoly I: How to lose your shirt.

      --
      They call me the wookie man, I guess that's what I am
    3. Re:Duh by Anonymous Coward · · Score: 5, Insightful

      Adapt to what? The fact that you basically own the market? That doesn't make sense.

      You want to extract more profit from a market that almost entirely buys from you already. Spending company resources on busting into brand-new markets is high risk with an unclear potential payoff. Adjusting your offerings such that people must pay more for the same service, or adjusting the law such that it is even more expensive (or illegal) to use alternatives, is far less risky with clearer gains.

      The choice is obvious.

    4. Re:Duh by kheldan · · Score: 2

      Adapt to what?

      "Me and mine first, and fuck everyone else", that's what. Basic animal survival instincts, sans-humanity.

      --
      Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
    5. Re:Duh by Johann+Lau · · Score: 1

      That's modded flamebait? Really? I wonder who might do such a thing.

    6. Re:Duh by Xaedalus · · Score: 0, Troll

      Adapt to what?

      "Me and mine first, and fuck everyone else", that's what. Basic animal survival instincts, sans-humanity.

      Nah, that's just basic libertarian philosophy.

      --
      Here's to hot beer, cold women, and Glaswegian kisses for all.
    7. Re:Duh by next_ghost · · Score: 2

      A natural monopoly is limited in its ability to raise prices due to potential and indirect competition. Government monopolies on the other hand...

      Only if a small startup can eat your lunch. Good luck competing with Google without a billion dollars worth of hardware and at least 2 years of web crawling to fill your search database.

    8. Re:Duh by Anonymous Coward · · Score: 0, Troll

      Libertarians are just going with the flow, then.

      When you put a lot of each-should-help-others (socialist) policies in place, several important things happen:

      1) Those who get free stuff from the policies immediately become less productive. Since their reward is not a product of their contribution, they lose their primary incentive to contribute, and stop contributing. Sure some noble souls continue to go above-and-beyond, but they are the exception and not the rule, and the increasing number of non-contributory members makes the system increasingly unsustainable.

      2) Those who are having their productivity taxed to support the policies start losing their incentives to be productive too. They experience a lower reward for their efforts, since a percentage of it will be sucked away and delivered to the unproductive members of group 1. This breeds animosity and rebellion; people start looking for ways to skirt their contribution requirements or otherwise exploit the system for their personal gain. This also weakens the sustainability of the system.

      3) As the sustainability limits of the system are reached, the response is to do it even more; even more taxation to fund even more social problems, creating a downward spiral.

      4) Those who organize and execute the systems (the politicians) wind up with way too much power, and invariably start exploiting it for personal gain. They divert funds from the intended recipients to their porkbarrel projects, make arrangements that are extremely profitable for specific businesses and then become members of the board of directors once their government term of service is up, etc.

      All of these consequences stem from the same basic truth: most humans act in their own best interest. Whether that is noble or not, whether it is right nor not, doesn't matter. It is what humans do, and this aspect of human nature cannot be changed. Not by law, not by policy, not by encouragement, not by religion, not by anything. Humans will always revert to essential selfishness, and any system which is built on essential selflessness will therefore fail.

    9. Re:Duh by Anonymous Coward · · Score: 1

      Refresh my memory, how did Google start? Did they immediately have a billion dollars in hardware and years of web crawl data?

      No they started small (at least compared to the existing players), crawled the web for a while and began developing their own search algorithm.

      A startup that does the same thing with a better algorithm will fine people who will use it and they can grow the way Google did if they're better.

    10. Re:Duh by oxdas · · Score: 2

      I think you have it backwards. Monopolies survive in spite of government regulation due to regulatory capture. All profit seeking companies want to become a monopoly because that is the state of highest profitability. Many companies will use whatever means to further their pursuit of monopoly status. This includes using the government to create barriers to entry for competitors or force competitors from the market. If you removed government regulations, it would not change that all companies are trying to increase market share and drive out competitors. Instead, you would get increased predatory actions, many of which are well documented during the end of the 19th and beginning of the 20th centuries in America.

    11. Re:Duh by Anonymous Coward · · Score: 0

      Except it's not.

      But nice karma whoring - any post bashing libertarians, no matter how stupid, misguided, and just plain ignorant of the actual philosophical underpinnings of libertarianism, will get you a +4 or +5 Insightful!

    12. Re:Duh by cpu6502 · · Score: 2

      >>>>>"Me and mine first, and fuck everyone else", that's what. Basic animal survival instincts, sans-humanity.
      >>
      >>just basic libertarian philosophy.

      Nice slam. But libertarians believe in protecting human life and basic human rights (right to speech, expression, ownership, plus a shield against government bureaucrats overruling our freedom of choice). We also believe corporations shouldn't even exist, as they are an artificial creation & protectorate of the government.

      In the libertarian world all companies would be directly-owned proprietorships or partnerships with the manager(s) directly responsible if one of their products blow-up, catch fire, or otherwise harm a customer. No immunity or limited liability or golden parachutes.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    13. Re:Duh by Anonymous Coward · · Score: 0

      So you're saying we should stifle Google with oppressive regulations to give the little guys like Bing a chance?

      Or are you saying that the only possible way to make money in online search is to sell ads to display alongside search results, and any other solution is doomed to failure?

      Or are you saying that Google is the one company in the history of the world that is, absent government intervention, incapable of being challenged by a competitor, because they're just magically immune?

    14. Re:Duh by cpu6502 · · Score: 2

      >>>Only if a small startup can eat your [monopoly]

      You mean like Google?
      In the 90s they were the "small startup" you describe, and they faced-off against the mighty monopoly that is Microsoft. The monopoly that had killed-off Atari, Commodore, DR-DOS, OS/2, Netscape. (Let's also include Apple which was not a startup but was definitely small.)

      Now both Google and Apple are whipping MS's butt in the operating system/browser market (Android, iOS, webkit). No monopoly lasts forever not even Microsoft which used to have 90% share, but has now dropped to around 50% overall.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    15. Re:Duh by Microlith · · Score: 1

      So basically, it'd be a disaster with a non-functional economy where no one would dare take risks?

    16. Re:Duh by scot4875 · · Score: 2

      You mean like Google?
      In the 90s they were the "small startup" you describe, and they faced-off against the mighty monopoly that is Microsoft.

      How the fuck was Google ever in direct competition with Microsoft before Bing and Android? Microsoft barely had any presence in the web search engine sphere, and Google had basically no presence elsewhere. Even if you count browsers, Microsoft had pretty much ceded that market to anyone who wanted it by not updating IE6 for about 8 years, because nobody making browsers was a threat to their core business anymore.

      You'll also notice that Google didn't start directly encroaching on Microsoft's territory until they themselves were already a multi-billion-dollar behemoth.

      --Jeremy

      --
      Jesus was a liberal
    17. Re:Duh by JasterBobaMereel · · Score: 1

      Yes, like all extremes it would not work

      The opposite is raw capitalism, which would end up with a series cartels or monopolies serving themselves and not the customer at all ...

      Or perhaps communism where nothing is owned by individuals and everything is held by everyone ...that worked well!

      The real solution is lightly regulated capitalism, companies are free to trade, but the customer has choice (no monopolies or cartels) and is given enough information to make an informed choice

      --
      Puteulanus fenestra mortis
    18. Re:Duh by Anonymous Coward · · Score: 0

      All of these consequences stem from the same basic truth: most humans act in their own best interest.

      That's only half true. Most humans (non-sociopaths and anti-socials) also act in the best interest of the groups they belong to. We are social animals as well. Not like ants. But like the apes we are. Libertarianism downplays (if not ignores) the fact that we evolved as social creatures. So it's a balancing act between our self-interests and the interests of those we consider part of our "tribe". Be that family, team, nation etc.

      Any society which over-emphasizes either the social or the individual nature of humans is going to be unbalanced and likely not the best place for most people to live in.

    19. Re:Duh by cpu6502 · · Score: 1

      A distinction that matters not. YOU claimed a monopoly like Microsoft had over the OS and Web browser markets can never be defeated by other companies. Google & Apple (and to a lesser extent: Mozilla) have demonstrated your claim to be false.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    20. Re:Duh by next_ghost · · Score: 2

      Refresh my memory, how did Google start? Did they immediately have a billion dollars in hardware and years of web crawl data?

      No they started small (at least compared to the existing players), crawled the web for a while and began developing their own search algorithm.

      A startup that does the same thing with a better algorithm will fine people who will use it and they can grow the way Google did if they're better.

      What existing players? Google was the very first company to use automated crawling to build a search database. Before that, every other competitor in the search market was employing an army of low-salary workers to crawl the web by hand! You can build your own datamining empire with nothing but a hundred bucks in your pocket when you're the first one to do it well enough. If you're the second or third, you need billions of dollars from day one and years to even catch up with the competition, even if your solution is much better than the established competitors' "good enough" solution. Remember that the worst enemy of perfection is good enough.

    21. Re:Duh by JasterBobaMereel · · Score: 1

      Microsoft were only in a monopoly position in search and browser due to their monopoly in desktop OS

      Google trumped them in search and Browser by being better, I agree, but were helped by European laws subverting MS's monopoly position

      Apple beat them by changing the rules, they are still a very poor second in desktop OS, but sidestepped this completely by moving to mobile/portable

      MS still has a monopoly position on desktop OS, it's just the market has moved from this and so MS who did not adapt has shrunk overall

      --
      Puteulanus fenestra mortis
    22. Re:Duh by cpu6502 · · Score: 1

      >>>So basically, it'd be a disaster with a non-functional economy where no one would dare take risks?

      The U.S. economy functioned just fine before the limited-liability incorporation license was invented. Plenty of people took risks. The present condition where we give managers immunity when they produce exploding Ford Pintos, or steal customer funds like MF global, is NOT a good solution.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    23. Re:Duh by Tom · · Score: 2

      This is how business has always worked.

      No, it isn't. This is how for most of history, a tiny fraction of business has worked. Lately, that has turned into the primary business philosophy. So much that I fear I have to remind everyone of the other one, that was dominant for most of history: Stable, reliable profits, not increasing profits. When you operate a small family business - the kind that 99.999% of all businesses ever in history have been like - then your incentive is to feed your family and generally earn a living. Growth is nice, but it isn't your primary focus. There was a time when the profit of a company was what mattered. Today, it is the growth rate - and if you have had even basic maths, you know that exponential growth is not sustainable in the long run. Thus, an economic system focussed on growth will do exactly what ours has been doing ever since we left the middle ages: Boom-bust-cycles. Because that is the only way to beat the rules and sustain exponential growth: You need to reset the counter to some much lower value every once in a while.

      The evil part about it is that most businesses (by number of corporations and in many countries still by number of employees) are still working on the "profit" instead of the "growth" model. And they go bust, too.

      --
      Assorted stuff I do sometimes: Lemuria.org
    24. Re:Duh by next_ghost · · Score: 1

      So you're saying we should stifle Google with oppressive regulations to give the little guys like Bing a chance?

      Bing doesn't need it because Microsoft has enough money to make its search services profitable before they run out of cash. But we definitely need heavy regulations to make sure that Google, Facebook and other such companies don't become evil.

      Or are you saying that the only possible way to make money in online search is to sell ads to display alongside search results, and any other solution is doomed to failure?

      No, I just find it VERY hard to imagine how to make money from online search when you don't get any search requests.

      Or are you saying that Google is the one company in the history of the world that is, absent government intervention, incapable of being challenged by a competitor, because they're just magically immune?

      Startup-sized competitor? Yes. Microsoft/Facebook/Apple-sized competitor? No.

    25. Re:Duh by Anonymous Coward · · Score: 0

      Government regulation creates monopolies due to regulatory capture.

      Bullshit.

    26. Re:Duh by squizzar · · Score: 2

      I'm fairly certain automated web crawling preceded google. There were manual aggregation sites (like Yahoo), but most others (lycos, altavista, loads more) were just crawling and counting links. Google got market share because it's algorithm cut through all the spam sites that worked out how to get to the top of the list (which wouldn't have happened if there was a genuine manual crawl occurring).

      But I don't disagree that to compete with google now would require an enormous investment. You could develop a far superior algorithm to google, but the chances of you getting a decent market share without huge investment are pretty small

    27. Re:Duh by shentino · · Score: 1

      What actually happened is that the .001 percent that are willing to lie cheat and steal to get ahead kicked everyone else in the balls and stabbed them in the back. They rose to the top by knocking everyone else down.

    28. Re:Duh by Anonymous Coward · · Score: 0

      Once your market saturation crosses a tipping point, the only way to further increase profit is to exploit

      In other words, after you make your first million, the only way to make your second million dollars is to murder someone else who made a million dollars? Being evil is not a glass ceiling. If you think exploitation should ever be neccessary in business, the problem is your lack of humanity, not human nature.

    29. Re:Duh by roman_mir · · Score: 1

      Oh, another crazy guy with genius ideas about breaking businesses, about what companies 'always working' the way he believes.

      Absent government there is an actual free market, and in it there are no barriers to entry into the market in any specific industry that are unnatural (laws). There are only natural barriers to entry - lack of savings and investment, lack of ability, lack of knowledge, etc.

      Companies do not become monopolies absent government, if they are successful, it's because they are good at providing whatever product or service, and the customers pick them, they become large, their competitors may reduce in size, some may disappear.

      Should a company stop being interesting to the customers, should there be a way to reduce costs, reduce prices, become more efficient, competition will arise, again, this only is true for a free market, but in tech we see much freer markets than elsewhere so far.

      Google, FB, etc., they are monopolies only when it comes to their own services, they don't prevent you from starting a business that is similar, the government will not prevent you from doing it mostly. But if you can't compete with them, it's because they have a good chunk of the market, and clients who are unwilling to come your way, and it means you can't beat the existing offer.

      Can you beat the offer of FB or Google that the services are offered for free?

      Actually there is gov't interference. Megaupload could be regarded as Youtube's competitor, the gov't destroyed that company, not to help Google, but to help some media companies, oh well, in the process they killed off a competitor to youtube actually. A competitor who was charging money for premium services even, but a viable competitor, Megaupload had tens or hundreds of millions in revenues.

      Human nature is not what you think, human nature is to try and get things for free without paying. So you are using Google's youtube and you probably weren't paying for Megaupload, so Google provided you with a service that you enjoyed and you didn't want to switch.

      By the way, this doesn't mean that a company cannot go wrong, of-course it can. A company can go wrong and it can lose its business, where is Polaroid?

      A company CAN do wrong, and it's fine as long as gov't doesn't step in with bailouts and creates a huge moral hazard, destroys viable competition this way, causes massive dislocation of resources, etc.

    30. Re:Duh by next_ghost · · Score: 1

      You mean like Google? In the 90s they were the "small startup" you describe, and they faced-off against the mighty monopoly that is Microsoft.

      What? Microsoft didn't enter the web search market until 2009. So how exactly did Google face Microsoft in the 90s?

      Now both Google and Apple are whipping MS's butt in the operating system/browser market (Android, iOS, webkit). No monopoly lasts forever not even Microsoft which used to have 90% share, but has now dropped to around 50% overall.

      Yeah, especially monopolies which never existed in the first place don't last very long. Microsoft's monopoly in the desktop market is still strong at 85+% worldwide. It's true Microsoft lost its web browser monopoly but only because they didn't bother to improve MSIE for almost a whole decade. Also, the monopoly was broken by free software (Mozilla Firefox), not by a startup or any other for-profit competition. As for mobile OS market, Microsoft never had any monopoly there.

    31. Re:Duh by Anonymous Coward · · Score: 0

      What existing players? Google was the very first company to use automated crawling to build a search database.

      Umm.... no. Just no. New to the internet, are we? If you weren't, you'd know about WebCrawler, AltaVista, Lycos, and plenty of others that all predated Google and were automated indexes, not manual ones like Yahoo started out as.

      Your post needs to be modded down to -1 (idiocy). It's just flat out wrong, and the guy you're arguing with is right.

    32. Re:Duh by LunaticTippy · · Score: 2

      There were dozens of prior bot based search engines. The first one I remember was Archie, around 1990. Early 90s players such as Excite, AltaVista, Webcrawler, InfoSeek all predate Google and used scripts to crawl the web. The only major hand-crawler I remember was Yahoo, but I think they used bots before google did, too.

      One thing I remember very clearly was how terrible the search engines all were, though at the time I thought they were amazing. The first time I used Google I couldn't believe how fast it was, and how flexible their search terms were, and the extent of the results.

      --
      Man, you really need that seminar!
    33. Re:Duh by next_ghost · · Score: 0

      I'm fairly certain automated web crawling preceded google. There were manual aggregation sites (like Yahoo), but most others (lycos, altavista, loads more) were just crawling and counting links. Google got market share because it's algorithm cut through all the spam sites that worked out how to get to the top of the list (which wouldn't have happened if there was a genuine manual crawl occurring).

      Lycos and AltaVista preceeded Google by only a few months and their ranking system was extremely inferior to Google's PageRank. Lycos and AltaVista were ranking by page content, not by external links pointing to the page. Google was the first company to get it right and I don't see any space for noticeable improvement.

    34. Re:Duh by painandgreed · · Score: 1

      >>>Only if a small startup can eat your [monopoly]

      You mean like Google? In the 90s they were the "small startup" you describe, and they faced-off against the mighty monopoly that is Microsoft.

      No, they faced-off with Yahoo! back when Yahoo was a verb. They mostly won because they were quicker and better with streamlined front page and better algorithms and Yahoo didn't change in time.

    35. Re:Duh by Braino420 · · Score: 1

      I think you have it backwards. Monopolies survive in spite of government regulation due to regulatory capture.

      I'm talking about markets where there existed no monopoly, but government regulation has created them or forced current competitors not to compete (see US airline regulation, in this case competing directly over price of inter-state travel). The wikipedia page for regulatory capture is full of them. The problem is, the industires the government hopes to regulate have more of an interest in the regulatory bodies than the voters do. Furthermore, a regulatory body will by necessity need to include people from such a business in order for the regulations to even make sense. Our current ideas about regulation don't have a fix for that.

      Many companies will use whatever means to further their pursuit of monopoly status

      This is a good thing. Natural monopolies aren't a bad thing in and of themselves. Government endorsed monopolies, not so much.

      This includes using the government to create barriers to entry for competitors or force competitors from the market.

      This would be the regulatory capture I was referring to.

      If you removed government regulations, it would not change that all companies are trying to increase market share and drive out competitors. Instead, you would get increased predatory actions, many of which are well documented during the end of the 19th and beginning of the 20th centuries in America.

      I would honestly be interested in knowing what you're referring to. Steel industry, railroad industry? I think those industries only prove my points and are actually referenced in the book I cited. In fact, you will see how the leaders of those industries tried to create (abusive) monopolies or cartels and found it a very difficult, maybe impossible, thing to do. If you need further evidence, look up US deregulation and see how it ended up benefiting those industries.

      --
      They call me the wookie man, I guess that's what I am
    36. Re:Duh by Mullen · · Score: 1

      >>>So basically, it'd be a disaster with a non-functional economy where no one would dare take risks?

      The U.S. economy functioned just fine before the limited-liability incorporation license was invented. Plenty of people took risks. The present condition where we give managers immunity when they produce exploding Ford Pintos, or steal customer funds like MF global, is NOT a good solution.

      Actually, no.
      You are confusing LLC with Corporation. LLC's are a late 19th century invention but the Corporation, in its basic and well known form, has been around since the Roman times.

      By allowing people to create Corporations, people can create an entity that protects them from losing everything if the Corporation goes out of business. It also allows people to invest, knowing that they will not be held liable or lose everything if the Corporation fails.

      I'll throw in that on the other end, consumers must be protected from Corporations and their activities so they don't get ripped off or die because of known faulty goods or services. The Libertarian idea that the consumers will protect themselves is faulty since consumers can't research that every good or service won't kill or harm them.

      http://en.wikipedia.org/wiki/History_of_corporations

      --
      Linux O Muerte!
    37. Re:Duh by overlordofmu · · Score: 1

      Google was 1997 and Lycos was 1994. Mod parent down.

    38. Re:Duh by overlordofmu · · Score: 2

      Pardon me, '98 and '94.

    39. Re:Duh by Anonymous Coward · · Score: 0

      Sheesh, what is it with people claiming utter bullshit in this thread? Altavista predated google by almost 4 YEARS, not a few months, and Webcrawler predated it by almost 5 years.

      Parent needs to be modded down.

    40. Re:Duh by element-o.p. · · Score: 2

      I don't think you understand Libertarian philosophy. Here's a primer for you. HTH!

      In a nutshell, it's "I'll leave you alone; you leave me alone." In practice, there is no way that I can exist without affecting those around me. Therefore, to implement Libertarian philosophy, we have to make some judgments upon when one person's rights trump another's, and that's where the difficulty arises. For example, I am an amateur musician, living on 2 1/2 acres of land. Ideally, if I want to play my electric guitar at 2:00 am with the amp turned up to 11, then I should be able to do so. However, even on 2 1/2 acres of land, I have neighbors who live close enough that my amp at full throttle at 2:00 am would probably keep them awake. Therefore, the city in which I live has enacted a noise ordinance that says I must be mindful of my neighbors' need for rest between 11:00 pm and 6:00 am. That's an infringement of my liberty, but I would argue that such a law is nevertheless a good thing. The point becomes even more obvious when you consider laws about things like murder or theft rather than noise ordinances: sure, laws preventing me from randomly killing someone else restrict my liberty, but -- excepting edge cases like self-defense -- isn't it more important that someone else be allowed to live than I be allowed to kill someone just for the lulz?

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    41. Re:Duh by element-o.p. · · Score: 1

      In other words, the key is "balance." True, that.

      Nevertheless, I think GPP's point is valid: people tend to act in self-interest, and socialist policies require that people be selfless in order to be sustainable. Look at what's been happening between France/Greece and Germany, for example. The Germans have been the hard-workers in GPP's hypothetical situation. The Greeks and French have been the one's getting the "free stuff" in GPP's example (don't take this too literally -- this is not necessarily true for all French and Greek people but on average across the entire nation, nor am I saying the French and Greek people haven't been working; just that the ratio of labor:benefits has been skewed in towards labor for the Germans and towards benefits for the French and Greeks). And now, the German's are starting to get pissed off about it because they feel like they are contributing a disproportionate share to sustain French and Greek benefits. Honestly, in their shoes, I would probably feel the same way.

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    42. Re:Duh by element-o.p. · · Score: 1

      I consider myself Libertarian, but I'm not sure I agree with your view of corporations. I'd like to see more limits on corporate immunity, but I don't know that it would be a good thing to see corporations removed entirely. Then again, I tend to view any and all extreme positions as being misguided. You can take pretty much anything too far, if you try.

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    43. Re:Duh by element-o.p. · · Score: 1

      ...and I don't see any space for noticeable improvement.

      Perhaps that is because you are not a visionary? I guarantee you that eventually someone will out-Google Google.

      If I had a dollar for every time I saw something and could see no way to improve upon it -- until someone else improved upon it -- I'd be able to quit my job and retire in the Bahamas (okay, that's probably a bit of an exaggeration, but you get my point).

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    44. Re:Duh by AwesomeMcgee · · Score: 1

      "the only way to further increase profits"

      This is the problem right here- greed. Profit won't do, continuous streams of it even, no no. People need to continuously increase the size of the profit stream.

      There are really 2 causes to when businesses do this, A) _GREEDY_ leaders, and I'm not saying this is common, I'm saying this is when you have a leader who is either truly without principles or willing to scrap them for money. I honestly don't think this is the norm in people- most people I meet day to day are actually well intentioned. B) The far more common reason- INVESTORS. Being a public company means you have a fiduciary responsibility to try and continually increase profits to continually increase desirability of your stock and value of it to your end investors.

      I am merely bringing this up to state: Your wrong in claiming this is the completely natural course of action that always happens, rather there are a great many private companies who have maintained steady profit streams with leaders not willing to compromise their principles merely to increase the profits which are already more than ample. These many companies just don't make the news, but I'm sure lots of you out there have worked for one before where the idea of exploiting someone would never enter the thought process in day to day business.

    45. Re:Duh by next_ghost · · Score: 3, Interesting

      Google was 1997 and Lycos was 1994. Mod parent down.

      That's the company founding date. Lycos got a web search engine in 1998 when it acquired HotBot. HotBot launched in May 1996. Meanwhile, Google was in development since January 1996 and started first experiments with crawling the web in March 1996. The proof of concept system was working by August 1996. The domain google.com was registered in September 1997 and the company itself was founded a year later.

      And the most important thing: The only other search engine that was using backlinks to rank search results before September 1998 was RankDex. Ever heard of it? Crawler bots were NOT the killer feature of web search engines. Backlink-based ranking was.

    46. Re:Duh by next_ghost · · Score: 1

      Perhaps that is because you are not a visionary? I guarantee you that eventually someone will out-Google Google.

      I can see many areas where search could be improved - pictures, videos, sound and music... but I can't see any way to deliver web page search results with noticeably more relevance than Google does right now. There may be a thousand little tweaks to make Google deliver better results, but even all of them combined won't make enough of a difference to make people switch to another service. Because Google is good enough. If people already have "good enough", they won't bother switching to "perfect" when it finally arrives.

    47. Re:Duh by Un-Thesis · · Score: 0

      You should read Ayn Rand's The Virtual of Selfishness. It talks all about this and why sentimentality and a caretaking nanny state are horrible and lead to the destruction of thriving societies, one after another.

      --
      Promote freedom; fight fascism.
    48. Re:Duh by oxdas · · Score: 1

      Many companies will use whatever means to further their pursuit of monopoly status

      This is a good thing. Natural monopolies aren't a bad thing in and of themselves. Government endorsed monopolies, not so much.

      Are you suggesting that Intel, Google, Microsoft, and Facebook are Natural Monopolies because of their drive and success? Are you suggesting that these companies rose to their positions primarily due to government regulations? In your mind, should the government intervene to ensure these companies do not abuse their positions?

      Government regulation creates monopolies due to regulatory capture.

      In most cases I have seen, first a company reaches a monopoly position (or oligopoly) before it can leverage regulators to keep its competitors out (for example AT&T). If this is the case, then it would be wrong to say the government regulation caused the monopoly (which is how I am interpreting your argument). This is not to say the the government does not grant monopolies, but these monopolies are also more stringently regulated and, ideally, Natural Monopolies.

      We are in agreement that government regulators can help maintain a monopoly and that this is undesirable.

      I would honestly be interested in knowing what you're referring to. Steel industry, railroad industry?

      Those are good examples. However, the best examples would be Standard Oil and AT&T off the top of my head. The latter is also a textbook example of how a monopoly can use regulators to maintain their position.

    49. Re:Duh by Archangel+Michael · · Score: 1

      Every Corporation is run by top management and boards of directors. It is these people who should be held responsible for the culture of corruption that many corporations have. The solution is simple, develop a legal framework whereby a jury decides if a corporation has crossed some ethical boundary. Such a framework would allow the legal system to punish the entire managing group with civil and criminal charges.

      The idea that "no one person" caused it may be true, but the "whole management team" allowed it to take place changes the scope. If you toss these people in jail, revoke all the trusts and confiscate all their wealth, the culture would necessarily change.

      Now this won't fix what many here call "exploitation" whereby people agree to do business together. You know, like Best Buy selling HDMI cables for 8x their actual value. While that may seem like exploitation it is not, it is just taking advantage of stupidity. And (IMHO) stupid should hurt.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    50. Re:Duh by Anonymous Coward · · Score: 0

      I'll throw in that on the other end, consumers must be protected from Corporations and their activities so they don't get ripped off or die because of known faulty goods or services.

      And how is this not adequately provided for by standard criminal & tort law?

      If I, an individual, sells you, another individual, a cup full of snake oil with the promise that it will give you the most magnificent sexual prowess ever dreamed of, and you instead are sickened and put in a coma for 9 months, you could sue me for fraud, and financial damages for the harm you suffered due to my deceit.

      If I, acting on behalf of a corporation, sell you, an individual, a cup full of snake oil with the promise that it will give you the most magnificent sexual prowess ever dreamed of, and you instead are sickened and put in a coma for 9 months, you could sue the corporation for fraud and financial damages for the harm you suffered due to my deceit.

      These consumer protections already exist - there's no need to invent new ones. The problem is preventing corporations from subverting them by buying up legislators to amend the laws and create exemptions for corporations. It's a problem of enforcement, not lack of laws.

      And these laws would *still* exist in a libertarian world. Because libertarians do not favor the *abolition* of the state - they favor the reduction of the state's role to one of referee or umpire: when two people disagree, the state, using an objective framework of laws, decides how best to "make whole" the aggrieved / injured party. Because in a libertarian society, people agree that any arrangement people voluntarily enter into by mutual consent is fine - UNLESS one party is deceiving the other, in which case you can argue that the injured party could not have given voluntary consent, since facts and information were withheld from them.

      The Libertarian idea that the consumers will protect themselves is faulty since consumers can't research that every good or service won't kill or harm them

      Why should they assume that all (or most, or even a sizable minority) of the products vying for their attention on the market would be harmful to or even kill them? You assume that there is no penalty to a corporation for selling known harmful products fraudulently, and that is absolutely false in any libertarian society you can imagine. There are two reasons why most products would still remain "mostly safe" for "most people" (excepting bizarre accidents, allergies, etc.):
      1) Companies that make a habit of killing their customers off will rapidly acquire a very bad reputation, and people will avoid them simply because of the brand name;
      2) Companies that want to earn repeat business will be competing to provide the best product available for a reasonable price. Most people do not consider "may explode or kill 75% of users" to be a "quality" product.

    51. Re:Duh by Anonymous Coward · · Score: 0

      YOU claimed a monopoly like Microsoft had over the OS and Web browser markets can never be defeated by other companies.

      Why am I not surprised to see cpu6502 posting yet another statement that is easily proven false just by traversing up the thread?

    52. Re:Duh by Braino420 · · Score: 1

      Are you suggesting that Intel, Google, Microsoft, and Facebook are Natural Monopolies because of their drive and success? Are you suggesting that these companies rose to their positions primarily due to government regulations? In your mind, should the government intervene to ensure these companies do not abuse their positions?

      I don't think they are any kind of monopolies. As far as I know, they all have competitors in their industries. In my opinion the government should not intervene until it comes up with a better way to "fix" the perceived abuses. I personally don't think there really is a better way, and is no political motivation to do so, and so would just rather the government stay out. I think people latch onto the idea of wanting to regulate businesses, but our current implementations do not work and I believe history is on my side.

      In most cases I have seen, first a company reaches a monopoly position (or oligopoly) before it can leverage regulators to keep its competitors out (for example AT&T).

      My mistake. I think due to how the word monopoly has been used in the preceding posts I automatically just think of an abusive monopoly, as in, one that wants to keep competitors out and be able to raise prices without consequences. What I'm saying is that the initial ATT monopoly would have been fine because it's still exposed to the forces of potential and indirect competition. The proceeding government intervention in 1913 allowed them to have their monopoly without those competitive forces. I think it sounded like a good idea at the time, because it's definitely more efficient to have one telephone system. But, I believe, had competitors been allowed to grow, they would have driven innovation in the areas of standardizing a common interface among carriers and reach agreements about connecting customers of different telephone systems. If Bell was able to continue its growth so it's no longer feasible to construct telephone poles next to Bells and compete with them, then it would have driven innovation in alternative ways of voice communication (like cell phones, for example, which would be indirect competition). If Bell were to try and abuse it's natural monopoly and price gouge, this opens itself up to competition who can come in and undercut their prices (potential competition). They would then have to lower their prices until their competitor died, rinse and repeat. Of course, this is a much simplified explanation as it ignores other government involvements like taxes that aren't meant to regulate any company in particular but have the side effect of making corporations want to grow past their efficient size. For example, the tax on stock dividends encourages companies to not give dividends but to instead invest that money in growth because capital gains tax is lower.

      Those are good examples. However, the best examples would be Standard Oil and AT&T off the top of my head. The latter is also a textbook example of how a monopoly can use regulators to maintain their position.

      I was under the impression you were talking about unregulated monopolies that abused their position from the previous sentence in your post. That's why I gave examples of popular big industries of the time that were unable to effectively and permanently abuse their monopolies (railroad lines) or collude (steel industry) despite no government regulations. Again, it's my belief that capitalism will work itself out when faced with a company trying to abuse its natural monopoly status. I would like to explore any counter-examples of that, if you know of any. As in, a company has a natural monopoly, or even colludes with other companies to fix prices, that was not punished by the market either by a competitor that comes up with a better idea to achieve the same means or who comes in and undercuts prices.

      --
      They call me the wookie man, I guess that's what I am
    53. Re:Duh by Xaedalus · · Score: 1

      How is THIS a troll? Please up-mod. This is an intelligent and insightful response to my snarky posting. While I don't agree with his conclusions, this is a good response.

      --
      Here's to hot beer, cold women, and Glaswegian kisses for all.
    54. Re:Duh by Xaedalus · · Score: 1

      I understand libertarian philosophy just fine. I agree with your interpretation of it. Unfortunately, your philosophy is co-opted by other people calling themselves "Libertarians" who find that your preferred philosophical platform nicely encompasses their desire for social stratification, and/or exploitation and subjugation of all those they deem 'inferior', usually by reason of intellect. I have met dozens of people with high IQs who believe that their superior intelligence grants them moral superiority over all those who are dumber than they are, and they espouse libertarian philosophy as a means to their end (namely, enshrining their superiority into law). They have no problem with co-opting and perverting the system in the name of gaming it to benefit themselves, as they believe in their own superiority and think that laws set up by lesser individuals should be ignored, twisted, or disregarded (just look at Wall Street). And as people like these individuals I speak of outnumber people like you in the Libertarian circles, sadly it is THEIR definition of Libertarianism that is dominant. Not yours. That is the fatal flaw of Libertarianism, and it's one that can easily lead to disaster for us all. That's why I attack Libertarianism.

      I do appreciate your forthright and civil response, and thank you for it. Well written, sir.

      --
      Here's to hot beer, cold women, and Glaswegian kisses for all.
    55. Re:Duh by kaatochacha · · Score: 1

      Why is this marked Troll? Just disagreeing with the opinion does not a troll make.

    56. Re:Duh by Tom · · Score: 1

      Basically, yes. But that's not new. What's new is that they are CEOs and business tycoons instead of kings and popes.

      --
      Assorted stuff I do sometimes: Lemuria.org
    57. Re:Duh by RedDeadThumb · · Score: 1

      That's true of any philosophy that there are those that will distort it to their own benefit or leanings, so why single out and pick on libertarians? And, yeah, why not look at Wall Street? Libertarianism had nothing to do with that. Who is in power? Not libertarians.

    58. Re:Duh by s.petry · · Score: 1

      Probably modded because Ayn Rand is a Philosopher and heaven help anyone that speaks of Philosophy. Fallacy, Rhetoric are generally the other scary words that tend to send sheople screaming.

      To second your point however, Plato's Republic also talks about the same issues with the Allegory of the Artisan. It's the same theme set played over and over through history. We humans fail over and over to learn and remember history, so repeat the same things over and over again.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    59. Re:Duh by ewibble · · Score: 1

      Actually if you look and Greece you see that Germany is helping not out of some desire to help, but with self interest that if the Greek economy collapses it will not be good for the German one. Part of problem is that Greece is part of the Euro it cannot just print money like the US.

      People get annoyed no matter what system you have. If a socialist system people don't get rewarded for the effort the put in so they don't try. If you have an totally free market people get used, poor rebel commit crime, get contagious diseases which even the rich can catch. Sometimes it is beneficial to work together, that is how we have the society we have today (although not perfect is much better than what we had 200 years ago).

    60. Re:Duh by oxdas · · Score: 1

      A monopoly is not defined by whether or not a company has competitors, but by whether or not they can use their position to dictate the terms of the market. By your definition, a monopoly is impossible. At its height U.S Steel only made about 2/3 of American steel. Even a government sanctioned monopoly usually has some competition (usually small scale and/or illegal). Perhaps the problem is we have different definitions of monopoly. Personally, I see your definition of monopoly akin to free markets. Both are impossible in the real world.

      As to your AT&T analysis, First it ignores my argument. AT&T became a monopoly before the Kingsbury Commitment. By 1913, AT&T controlled 95% of all long distance telephone infrastructure and had just purchased Western Union to control all telegraph lines too. The government intervened AFTER AT&T become a monopoly, thus they did not create them (unless you want to consider patents creating the Bell system).

      Second, The Kingsbury Commitment in 1913 was an effort from the government to create competition in the market, not make AT&T a state monopoly (that would happen in 1934). Under the agreement, AT&T had to sell Western Union and allow any local phone company to use their long distance network. The Cato institute argues that if the government had not intervened, AT&T might have overstepped and the small companies might have banded together to create their own competitive long distance network. The Kingsbury Commitment took away the incentive to create their own network by guaranteeing them all access. I am not convinced. Furthermore, because the Kingsbury agreement allowed AT&T to purchase its competitors only if if agreed to sell a company, AT&T decided to purchase and spin off companies to create local monopolies, which colluded to fix prices. This situation should not have been allowed by AT&T's regulators as it was certainly against the spirit of the Kingsbury Commitment, but the regulator had been captured by this point.

      As for examples of long living monopolies, I think De Beers would have to make the list. They controlled the world's diamond supply for more than 60 years. Even today, they are the biggest player and collusion keeps the price of diamonds artificially high. Of course, since they never controlled all the world's supply, by your definition they were not a monopoly.

      Getting back to the point at hand. You claimed that government regulation creates monopolies due to regulatory capture. This again demonstrates that companies may use regulatory capture to further their monopoly (at point we agree on I think), but I still don't see evidence of the regulatory capture creating the monopoly.

    61. Re:Duh by JasterBobaMereel · · Score: 1

      Simple solution : If what they do is not losing them customers in droves (as it should) then treat it as the crime it is (fraud, embezzling etc ..) and prosecute the person ultimately responsible the head of the company...the buck truly stops there

      It might force people to actually run their companies, and put in place systems so they know what is going on and mechanisms to stop things that might land them in jail ...

      --
      Puteulanus fenestra mortis
    62. Re:Duh by s.petry · · Score: 1

      It's a shame this is posted anonymously since it is an exceptional response. I believe that this is one of many things Ron Paul talked about, as well as numerous other conservatives both R and D. The problem is not that we don't have laws, quite the contrary. It's the massive amount of deregulation and special case clauses we have added to laws that are the problem.

      Hell, this goes back 20 years now with Ross Perot. Of course MSM won't talk about it, but the same problems then have been extended and become much worse. Hint (and this is one of hundreds of examples): Tax code 20 years ago was around 20,000 pages long, and today it's over 60,000 pages long. No one can read the damn thing, so how do you know if you are not illegal when filing? File long form? Good luck with that audit.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    63. Re:Duh by Xaedalus · · Score: 1

      Libertarianism as a movement had nothing to do with that. Libertarian principles did: deregulation, purposeful dismantling of government oversight to promote individual gain, arguments that the industry can regulate itself in a partnership with its customer base just as well if not more efficiently than the government can. Your purposes and beliefs were easily perverted because you do not make accommodation for the reality that libertarianism requires enlightenment of _all_ its followers to work. The system works great on paper, but like Communism, too easily falls victim to the predations of its own adherents when practiced in reality. If a substantial majority of libertarians were indeed like you or element-o.p., and had the necessary moral rectitude and courage to ward against corruption, we wouldn't be having this discussion. Libertarianism is better off as an ideal that filters political discourse, than as an actual governing philosophy.

      --
      Here's to hot beer, cold women, and Glaswegian kisses for all.
    64. Re:Duh by cavebison · · Score: 1

      the only way to further increase profits

      Bingo. That's the source of all our woes - why the economy is unstable, why companies get "too big to fail", why we have patent and copyright craziness, why companies seek to influence policy at the highest level.

      If we didn't have certain stupid laws - which force companies to pursue increased profit, market share, share price, growth, growth, growth - we would not have such a volatile business culture. It has become neurotic and almost counter-productive with the desire to dominate and control.

      Companies, believe it or not, originally came from the idea that members of a society got together to build something with the primary goal of benefiting their society. Where did that idea go? It seems to be a happy coincidence these days, if a company's goals align beneficially with that of wider society.

    65. Re:Duh by badkarmadayaccount · · Score: 1

      Nobody ever tried anything close to communism, hey just claimed so. One of the core tennets of libetarianism is the informed individual. The government enforces industry secrecy even when it goes against ethics - say, pharmaceutical companies - there are plenty of dirty secrets related to widely perscribed medications (SSRI, anit-psychotics, lithium) that are not disclosed. Or at least that what the beer fairy told me.~

      --
      I know tobacco is bad for you, so I smoke weed with crack.
  6. Hmm ... sounds familiar. by richg74 · · Score: 5, Interesting

    My first reaction to this article was a wry smile" "I think I've heard this story before." I spent 30+ years working in IT on Wall Street, and saw that industry change from relationship-oriented to a almost complete focus on short-term transactions. ("What have you done for me today?") IN both industries, there is a good deal below the surface that isn't visible, easily or at all, to the customer; that the customer often ends up getting screwed shouldn't really surprise anyone.

    1. Re:Hmm ... sounds familiar. by alen · · Score: 2, Informative

      a customer supplier relationship means that you buy enough crap and send large commissions to the sales guy for simply filling out some paperwork. it only exists until someone starts selling similar products for a lot less and then your PHB starts asking why are we paying $30,000 for a server or whatever when someone else is selling the same for half the price.

        i've seen the same thing except i've noticed a lot of things get commoditized and some are still higher end where a sales person is needed.

      tape libraries for one. IBM, Sun and a few others will sell you a tape library and lock down most of the tape slots to be unlocked by buying special keys. by the time you add up the price of these licenses the total price is beyond ridiculous.

      HP will sell you a decent enough tape library with all slots usable. A LOT cheaper. they all use the same connections and LTO-4/5 tapes except with HP you don't need to pay some ridiculous commission. same with servers and a lot of other gear. its simple enough for the buyer to figure out what to buy or for few CDW sales guys to serve a lot of customers remotely instead of your local reseller coming out with 5 people to sell a tape library

    2. Re:Hmm ... sounds familiar. by Anonymous Coward · · Score: 1

      Seeing that this book was written over 50 years ago, it's not clear that Wall Street customers were better off in the "good old days" when their brokers asked about their wife and kids by name.

    3. Re:Hmm ... sounds familiar. by richg74 · · Score: 1

      That book, Where Are the Customers' Yachts?, by Fred Schwed, is one of my favorites -- I especially like the description of the coin-flipping contest. You're right, there has always been exploitation of customers, especially retail customers, by Wall Street. I neglected to mention, in my original post, that I worked mostly in the institutional side of the business; at one time, there was some consideration of on-going relationships in that segment. (That was unlikely to be due to greater ethical scruples; they just weren't sure how to avoid getting caught.) More recently, though, corporate customers frequently get shafted just like ordinary folks -- sort of equal-opportunity exploitation.

    4. Re:Hmm ... sounds familiar. by s.petry · · Score: 1

      What I wonder is if you realize that there is psychological reasons for pushing and designing games and many forms of entertainment (like Social Media). The current design systems for the most part use psychological methods proven in the 50's to be extremely effective at creating an addictive behaviors. Have you also noticed the amount of people that want you hooked? "Like us on Facebook" means one actually must visit and figure out how to use the site.

      Whether it's intentional or not, or nefarious or not, is a different question. There is however a simple reality which is we have known since the 50's how easy it is to create addictive behaviors in people (see Slot machines) and now we are at a time where we are continually being pushed toward those behaviors, and new attractions to the same behaviors have become the normal.

      One more piece to add to the creepy factor, is that many brainwashing techniques are currently being used to push people toward certain behaviors and react in certain ways to various subjects. Again, these techniques have been proven to be effective long before the invention of the Internet. As with above, whether it is nefarious and intentional is a different question. The methods are all around you, you just need to look. The internet just makes what we already knew about exploiting people easier for everyone to access.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    5. Re:Hmm ... sounds familiar. by s.petry · · Score: 1

      And perhaps an apology is in order, since my reply does not fit with what you were stating regarding technical data and services. The abuse of consumers in the article and market I believe goes way beyond just the meat and potatoes you gave a great example of.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    6. Re:Hmm ... sounds familiar. by illtud · · Score: 1

      HP will sell you a decent enough tape library with all slots usable. A LOT cheaper. they all use the same connections and LTO-4/5 tapes except with HP you don't need to pay some ridiculous commission.

      As a customer of another tape library company paying licences for the right to use slots in hardware we'd already bought (s'ok, it's a business model) I'd moderated you 'interesting'. Then I went googling for HP Tape Libraries, and got this:

      http://www.cbccomputers.com/index.php/hp-esl-g3-100-slot-capacity-upgrade-license.html

      So I guess they're playing the same game. You may be referring to smaller tape libraries, but I don't play in that field. I can't comment on the competitiveness of the licence cost, just thought I'd point that out in case anybody else took your post to mean that HP don't licence slots.

  7. Not likely by geek · · Score: 4, Insightful

    How are the exploited if they are signing up willingly? Trying to negate personal responsibility and play it off on the "evil corporation" is more played out than the buzzwords Davidow uses in his "blog."

    I agree companies take things a bit too far at times but like a wise man once said "It's a crime to let a sucker hang on to his money." I feel no worse for people being "exploited" by these companies than I do the banks that gambled on them.

    1. Re:Not likely by Anonymous Coward · · Score: 0

      How are the exploited if they are signing up willingly?

      Because they were lied to before they signed up willingly, i.e. if they were really informed of what was going to happen to them, then they would have never signed up. Not only does your lack of ethics show, but you are also advocating something that is illegal to begin with. It's called "misrepresentation".

      http://en.wikipedia.org/wiki/Misrepresentation

    2. Re:Not likely by Anonymous Coward · · Score: 1

      I see his point, and it is really hard to mount a defence.

      I think not locking in your data is one way to help keep companies from doing this.
      However when you depend on their services, you're still locked in.

      So as much as Google lets you keep your data, and Facebook doesn't. (Try to get a fully copy of your messages from both). If you build a NEED for their services you're screwed.

      But this is a behavioural issue, don't single source critical services.

    3. Re:Not likely by spagthorpe · · Score: 1

      You can be too stupid to know you're being exploited.

      --

      WWJD -- What Would Jimi Do?
      (Smash amp, burn guitar, take home the groupies)

    4. Re:Not likely by StatureOfLiberty · · Score: 5, Insightful

      "How are the exploited if they are signing up willingly?"

      I agree. But, I would add this.

      We have been busy educating the perfect consumer. One who always sees a want as being a need. One who can't perceive true value. One who cannot weigh risk vs. benefit. One who asks no questions and just forks over the money. Preferably in some recurring revenue fashion.

      We are educating perfect voters too. No analytical skills. Just cheerleaders willing to forward stupid emails and keep up with today's talking points at most. Then pull the straight ticket lever come election day. It is really sad.

    5. Re:Not likely by Bigby · · Score: 1

      Where does Google do this?

    6. Re:Not likely by Anonymous Coward · · Score: 0

      Great post +1 Insightful

      Oh for mod points right now

    7. Re:Not likely by Anonymous Coward · · Score: 0

      Where does Google do this?

      Like any web company, they are using a form browse-wrap licensing. The only difference here is, the license is not sealed in a box that prevents you from reading it. Rather, the license is not implicitly displayed at the time of the agreement. It is, at best, nebulous, and at worse, not enforcable.

      http://www.chillingeffects.org/reverse/faq.cgi#QID207

    8. Re:Not likely by Anonymous Coward · · Score: 1

      but like a wise man once said "It's a crime to let a sucker hang on to his money."

      No, it's called minding your own business. The "the victim got what he deserved" mentality is one of the worst things our civilization has produced. Society is supposed to protect those who might be less capable.

    9. Re:Not likely by timeOday · · Score: 1
      It has little to do with stupidity. The problem is that you do not -- CANNOT -- know what you are "paying" in this voluntary transaction because it's all trade secrets. Thus we are being constantly manipulated in ways we're not aware of.

      Anyways, the idea that any exchange is OK if it is voluntary, is bunk. Somebody choosing to do something only establishes one thing - that it was the best option available to them at the time. The much larger question is whether they had any good options in the first place.

    10. Re:Not likely by Anonymous Coward · · Score: 0

      If you are trying to pick up girls, and they all ask if you have Facebook, and when you say no and ask for the phone number, just never ever give it to you... how long will you stand it, go home, and fap to porn... again? Hm?

      How blind or forever alone are you, that you haven't realized that there isn't really any choice.

      Willingly... as in: You have the choice sign up, or be forever alone.

    11. Re:Not likely by kheldan · · Score: 1

      Because they have been brainwashed into believing that their lives aren't "complete" without those things!

      --
      Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
    12. Re:Not likely by Anonymous Coward · · Score: 0

      Amen man. AMEN

    13. Re:Not likely by mcgrew · · Score: 1

      I agree companies take things a bit too far at times but like a wise man once said "It's a crime to let a sucker hang on to his money." I feel no worse for people being "exploited" by these companies than I do the banks that gambled on them.

      A wise man? No, that's only the wisdom of a theif. I'll bet you were rooting for Madoff when he was on trial.

      You know who says "It's a crime to let a sucker hang on to his money"? Con artists. I only hope that you'll be suckered by one, you'll change your tune when you are. Theivery is theivery whether or not the theivery is legal.

    14. Re:Not likely by Anonymous Coward · · Score: 0

      I agree companies take things a bit too far at times but like a wise man once said "It's a crime to let a sucker hang on to his money."

      Ahh the old "evil bastards exist therefore I can't be expected to hold myself to a higher standard than evil bastard" excuse.

      Your statement shows no compassion for humanity. In fact it shows no humanity. Animals practice predation on prey that could often be considered "suckers".

      If you prey on, or condone the predation of your fellow humans, then you are an evil bastard. Period. Well either that, or you are an animal. Take your pick?

      -AC

    15. Re:Not likely by NotSanguine · · Score: 2

      If you are trying to pick up girls, and they all ask if you have Facebook, and when you say no and ask for the phone number, just never ever give it to you... how long will you stand it, go home, and fap to porn... again? Hm?

      How blind or forever alone are you, that you haven't realized that there isn't really any choice.

      Willingly... as in: You have the choice sign up, or be forever alone.

      If you really think that not having FB is what's keeping you from getting laid...gosh, I just don't know what to say except you're doing it wrong.

      --
      No, no, you're not thinking; you're just being logical. --Niels Bohr
    16. Re:Not likely by roman_mir · · Score: 1

      Yeah, and thus democracy is a gateway to tyranny. People will absolutely give up their freedoms for a little bit of convenience or some free cheese in a mousetrap, but they can't even understand that they stepped into that mousetrap.

    17. Re:Not likely by Anonymous Coward · · Score: 0

      Kind of like the anti-American anti-capitalists on here that were exploited by their 2nd grade teacher telling them everything rich and American is evil?

    18. Re:Not likely by dkleinsc · · Score: 1

      How are the exploited if they are signing up willingly? ... I agree companies take things a bit too far at times but like a wise man once said "It's a crime to let a sucker hang on to his money." I feel no worse for people being "exploited" by these companies than I do the banks that gambled on them.

      Here's the counterargument put forward by Elizabeth Warren years before she was remotely considering running for political office: As a classroom exercise at Harvard Law, the prof and students took standard EULAs and credit card contracts and tried to analyze them. They couldn't. If a room full of lawyers can't understand a contract, how the heck is an average person supposed to understand what they're signing up for?

      The usual response to that is "but the average person could go with the company that doesn't do that, or do without the service". Well, if every company in the market is doing that, they can't get out of it by switching sellers. And if the product is pretty much required for their daily life (e.g. having a bank account with a debit card or using a search engine), doing without the service isn't really viable either.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    19. Re:Not likely by Anonymous Coward · · Score: 0

      Appropriate username :) Well-thought, well-said. Just commenting to let you know that an AC stands with you.

    20. Re:Not likely by geek · · Score: 1

      Elizabeth Warren doesn't even know what her ethnicity is. Putting that moron up as an example doesn't help your argument. Besides that fact, I've never met a lawyer that I found to be intelligent. They just argue, usually in circles and often with themselves. It's not a surprise a room full of them can't figure out basic contracts. I'd be surprised if they could tie their own shoes.

    21. Re:Not likely by dkleinsc · · Score: 1

      My argument is this: If somebody with lots of training, experience, awards, published papers, etc in a field can't figure out something that is in that field, how would you reasonably expect your average layperson to be able to figure it out? A similar argument from a different field: If a bunch of theoretical physicists can't provide a deifinitive answer on whether string theory is accurate, what makes you think that the average person is likely to get it right?

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
  8. Re:ok, like IBM and others didn't exploit customer by vlm · · Score: 1

    Those were customers, receivers of a at least sorta customized product or service. Also, in general, corporations not lowly humans. Consumers are a much more lowly social class. Like the difference between a diner eating while seated at a gourmet restaurant, vs the maggots in the dumpster eating the leftovers the diners didn't want. Its a social class thing.

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  9. Re:ok, like IBM and others didn't exploit customer by digitalaudiorock · · Score: 2

    I'm not sure that's a good comparison. What you describe is simple competition...supply a cheaper product that gets the job done and get that business. What he's describing is quite different. Actually the use of the term "customer" in this whole context seems a little grey to me. These companies real "customers" are the ones paying for add revenue, not those being exploited.

  10. Not Sustainable by mfh · · Score: 2

    This is why we have internet bubbles. If you try and cheat your way to the top, the people will simply shift away from you. If value is non-existent in a service or product, the people will not buy it (even if it's free). If you keep fooling them, eventually there will be nobody left with money to fool, or the ones you fooled will ignore future false promises. Millions of Facebook users don't realize they are working for Facebook but not being paid, because Facebook earns all it's money based on the information those people provide, freely (including private messages).

    When the negative behavior is revealed to everyone, we tend to just pull the plug. For example, I deleted my Facebook account because of their shady attitude towards privacy. For a while it looked like Facebook would continue to dominate social. But social has become very anti-social; ads, over-stimulus, email nagging... etc.

    THE PROMISE

    I will pull the plug on anything that turns out to be false. Invest in false companies at your peril.

    --
    The dangers of knowledge trigger emotional distress in human beings.
    1. Re:Not Sustainable by drharris · · Score: 2

      They may be working for Facebook, but there is a return on the work. That return is an electronic social connection service that is fairly unique, albeit mostly because of the current momentum. There *is* value provided by all the employees on the back end of Facebook, even if it does cost the users something other than money- their Privacy. But, you are right on about the bubble shifts. The Internet changes quickly. Facebook is always pushing the extent of which their users will cooperate. They do run the constant risk of abandonment when a suitable competitor arises who at least *appears* to have less conflict with their personal values.

    2. Re:Not Sustainable by NotSanguine · · Score: 1

      Don't you realize now that FB has gone public, the people that matter have already made their money?

      Any further profits are just gravy now. Watch as things get worse and worse as the second and third waves come to feed at the trough. And when the hogs have been fully slopped, it's gonna be straight down the toilet.

      And when they finally go down for good, getting your data off of MegaUpload's servers is going to look like a walk in the park compared to trying to retrieve all your photos, videos, inane ramblings, etc. from FB.

      --
      No, no, you're not thinking; you're just being logical. --Niels Bohr
  11. Without customersploitation by k(wi)r(kipedia) · · Score: 1

    ... Silicon Valley either would not exist or would have morphed into a university town or some non-academic research center.

  12. Re:ok, like IBM and others didn't exploit customer by Sique · · Score: 2

    No, PCs caught on, because their computing power and extensability was enough to fulfill a special need centralized systems weren't fit for: Doing your own spreadsheet at your desk, writing something to be edited heavily later, playing some games, combine arbitrary software adapted to your ideas how to work or recreate. The whole notion of "personal computing" was diametral to the centralized IT shop with the big irons serving multiple terminals. PCs weren't eating into IBM's or DEC's revenues. Only when the PC technology was mature enough to make inroad into the server business, the game was changed. But at that time, tens of millions of PCs were already sold.

    --
    .sig: Sique *sigh*
  13. "Free market" in its purest form. by Anonymous Coward · · Score: 0

    And that, my friends, is called "the free market".
    Because laws, morals, and even basic long-term thinking are just evil reality-imposed restrictions, and have to be stopped...

    If one could rape people over the Internet, they’d do it... and take your money for that service.

    Meanwhile, the offline experiment of this -- called the NeoCon USA -- is approaching its final result earlier than expected.

    1. Re:"Free market" in its purest form. by Alien+Being · · Score: 1

      And articles like this are like the better business bureau. It's important to share information about which corporations are trustworthy and which are sleazeballs.

    2. Re:"Free market" in its purest form. by Anonymous Coward · · Score: 0

      And that, my friends, is called "the free market".

      No it's not. It's called a state of nature, or pure anarchy. There is a difference - one which you'll eventually learn to your own detriment, if you continue to conflate the two.

  14. Re:ok, like IBM and others didn't exploit customer by alen · · Score: 3, Insightful

    nobody is forcing you to use facebook, google, twitter or any free internet service. i use them because i get value out of them.

    oh noes, facebook knows i liked the page of some women's perfume my wife likes. its so evil the perfume maker may even send me a custom coupon before my wife's birthday because they will have her info as well.

  15. Define 'exploited' by Picass0 · · Score: 4, Insightful

    Some people at slashdot look at Apple and it's walled garden app store and feel like Apple is creating a trapped audience who can only download what Apple feels is OK.

    And they are right. But some people who want a simple "it just works" device are willing to accept that model and they don't care about concepts like open source.

    I'll extend that to many of IT professionals who have spent years getting the dreaded "my computer is broken" phone calls. They have pointed friends and family in Apple's direction because... it's just works.

    Grandma doesn't build her own kernel. She doesn't see a walled garden. She sees a device that works without throwing a ton of alarming messages at her.

    1. Re:Define 'exploited' by Tom · · Score: 2

      I agree on that.

      Whether you like Apple or not, they have a different business model from Google and Facebook. For Apple, you are the customer. For Google and Facebook, you are the product they sell. That's an important difference.

      --
      Assorted stuff I do sometimes: Lemuria.org
    2. Re:Define 'exploited' by DigiShaman · · Score: 1

      It's becoming less of a PC (in terms of being customizable) and more of an appliance. Just the kind of mindset that people want, actually. People want something that turns on and does the job with little fuss. Just like Consoles, washing machines, microwaves, TVs, etc. People want to focus on the results, not the the journey it takes to get there.

      --
      Life is not for the lazy.
    3. Re:Define 'exploited' by Anonymous Coward · · Score: 0

      And they are right. But some people who want a simple "it just works" device are willing to accept that model and they don't care about concepts like open source.

      True. But the first time they get an "Error: Unacceptable (in the provider's opinion) content requested" message they'll suddenly care about such concepts.

    4. Re:Define 'exploited' by Anonymous Coward · · Score: 0

      Some people at slashdot look at Apple and it's walled garden app store and feel like Apple is creating a trapped audience who can only download what Apple feels is OK.

      And they are right.

      No they aren't! I can freely use some Apple stuff on my Mac, and use non-Apple stuff on my Mac, too. I can both use iTunes, and NetFlix (and also Hulu, and YouTube, and a billion other services). I can download Mac apps from the web and run them. I don't have to use the app store. I can even download the source of Unix packages and build them myself. (And I actually have!) Apple isn't doing anything like what the whiners on Slashdot say they're doing. They are building a set of tools and services people want, though.

  16. Really? by Anonymous Coward · · Score: 1

    Okay, as companies get further away from 'making something', I'd say that the area may grey . . . but is this a bad comparison or what?

    Apple (yes, I'll get flamed for saying this) has yet to prove they're exploiting their customers aside from the fringe that think they're crazy.
    Google has an unprecedented (legally, in private hands) amount of people's info, but again, as long as search results give me what I want, I don't see a problem.
    Facebook? Well, yes, they're exploiting idiots, but aside from the above two 'cornering the market' on something, they're not all that much alike.

    So where is St. Amazon in this and why are they excluded? Because we're still 'getting stuff' from them I'm guessing. TFA is trollbait.

  17. Who are the customers? by Anonymous Coward · · Score: 1

    The major difference between Google and Facebook.. and HP and Intel is that the "customer" for FB and Google is the advertisers. The general public is the product. Having used Google adwords as a customer, I can assure you the customer is treated well. They contact you with offers of free support from real live people.

  18. It's computers, so it's completely new! by Guppy06 · · Score: 3, Interesting

    This is in no way similar to, say, my telephone number being sold or traded by businesses to telemarketers.

    This isn't new, and this isn't unique to IT.

  19. Re:ok, like IBM and others didn't exploit customer by Anonymous Coward · · Score: 1

    Nobody forces anyone to go to work, stop at red lights, wear clothes outside, or the like either. However, consequences do happen.

    Until I got my current job, every previous would-be employer asked what my FB ID was. When I told them I didn't have one, I was told directly that the interview was over, and that someone without FB was a fossil too ignorant/old/stupid to be working there.

    If I want to listen to Spotify or other services, guess what? They use FB for their access.

  20. "Silicon" Valley? by Anonymous Coward · · Score: 0

    That would imply that there was actual hardware development going on there.

    1. Re:"Silicon" Valley? by k6mfw · · Score: 1

      yep, it's a myth. But there was a time when there was hardware development, but the chip companies didn't sprout up in the orchards by themselves, http://www.inc.com/eric-schurenberg/inconvenient-history-of-silicon-valley.html

      I heard this before, and then of a presentation at local INCOSE meeting in November by Sam Araki who worked on the Corona program for Lockheed. He presented and showed how much effort was pumped into developing the electronics needed for these new recon satellites. And there was is serious need since we had not much knowledge of USSR military buildup. Unlike USSR, USA efforts resulted in huge turnouts of civilian products and uses. He also showed charts of why our economic recovery system is broken. Unlike previous economic downturns we were able to recover. In early 70s Lockheed Missiles and Space in Sunnyvale employed 28,000 people. Now this same place (LockMart) it is 8,000.

      --
      mfwright@batnet.com
    2. Re:"Silicon" Valley? by k6mfw · · Score: 1
      --
      mfwright@batnet.com
  21. Craigslist by SidIncognito · · Score: 5, Interesting

    The more I think about, the more impressed I am by the Craigslist model. There is no constant addition of features just for the sake of appearing to do something or for the sake of growing revenues. That's a service that is truly focused on its users.

    1. Re:Craigslist by CAIMLAS · · Score: 1

      Craigslist doesn't really have a model which is applicable to anything other than psuedo-random listings, though. It's the very base level of a useful information repository. I highly doubt they don't restrict adding features and making progress out of a lack of desire to grow revenues, particularly in the face of many of their features getting siphoned off into more dynamic map- and item- type search engines.

      --
      ~/ssh slashdot.org ssh: connect to host slashdot.org port 22: too many beers
    2. Re:Craigslist by radtea · · Score: 1

      That's a service that is truly focused on its users.

      Users? Not a chance. Customers? That is, the people who pay them money? Sure.

      Craigslist is a terrible experience for a number of routine tasks. Their ads are full of scams that could be easily removed by simple filters (how do I know this? I've written the filters for my own use, likely breaking CL's terms of service in the process.)

      Their search capability is so lame as to be almost useless for anything interesting. I've used CL to search for apartments and boats, and my kids have looked at it for jobs. It is barely usable for the first and completely useless for the latter.

      The problem with the apartments and boats is that search and classification capabilities are poor. The problem with jobs is that where I am there are nothing but scam postings (this seems to vary by geography, so YMMV.)

      BUT... if you are a landlord who just wants to get ads up easily and quickly in front of a lot of eyeballs, you go to CL. It's a perfect example of a company that has so much first-mover advantage that it is very difficult to compete with despite the poor experience for users, although PadMap/PadList is trying (and getting cease and desist orders from CL in the process due to terms of service violations.)

      Alternatives face a major chicken-and-egg problem: to get customers using it they have to have users, and to get users they have to have listers. This is the great unsolved problem of the Internet, and it seems to mostly be worked around by various activities of questionable legality (scraping competitive sites and putting up copies of their ads.)

      --
      Blasphemy is a human right. Blasphemophobia kills.
    3. Re:Craigslist by SidIncognito · · Score: 1

      Fair enough. I guess it's a matter of personal preference. I just meant that in comparison to sites like Facebook and Google that annoy me by constantly adding "features" that I didn't want and that get in my way, I appreciate the way Craigslist stays in the background for the most part. You're right about the flipside that they're too stubborn and could stand to make some genuine improvements for usability. But I do applaud them for the fact that they aren't constantly coming up with pointless new ideas just for the sake of squeezing more revenues out of their customers.

  22. Re:ok, like IBM and others didn't exploit customer by alen · · Score: 2

    my father in law is a millionaire and he never uses facebook. in fact he rarely uses the cheapo laptop i bought him. i know other successful people who don't use facebook. some have accounts but never use it, others don't even have an account.

  23. You know what I am going to do about this? by Keyslapper · · Score: 4, Insightful

    "Nothing! Because if I take it to small claims court, it will just drain 8 hours out of my life and you probably won't show up and even if I got the judgment you'd just stiff me anyway; so what I am going to do is piss and moan like an impotent jerk, and then bend over and take it up the tailpipe!"
    -- Fletcher (Jim Carrey) "Liar, Liar"

    Different scenario, same outcome.

  24. Different then?? by stedlj · · Score: 1

    And how they are acting any different then say 90% of the other companies in the USA?

  25. Re:ok, like IBM and others didn't exploit customer by jrroche · · Score: 3, Informative

    Nobody forces anyone to go to work, stop at red lights, wear clothes outside, or the like either.

    Actually the police do (other than the going to work part).

    If I want to listen to Spotify or other services, guess what? They use FB for their access.

    Actually they don't. I have Spotify fully disconnected from Facebook.

  26. diff:customer,consumer by Ralph+Spoilsport · · Score: 3, Insightful
    There's a difference between a customer and a consumer, and I think that is what the article is dancing around. There is a political corrolary to this, the difference between a citizen and a tax payer. We can see how this devolution from citizen/customer to consumer/taxpayer has taken place. A customer has a relationship with the provider and has some agency with the provider. A consumer is more infantilised, more of a "feeder", and has less agency. This also feeds the monopolisation trend he discusses - customers are empowered to go elsewhere, consumers, less so. Consumers are happy with whatever gizmos the monopolists provide them, and have a dramatically different set of expectations than a customer does. Citizens are empowered and informed. They may not be correct (in my vision of the world, but, it takes all kinds...) but they are actively involved with their neighbourhoods, communities, localities and nation-states. Taxpayers are not. Taxpayers are consumers of government services and see themselves as alienated from the systems of service provision. And as consumers, they want what all infantilised consumers want:

    Something for nothing.

    Napster simply provided exactly what the consumer had been demanding all along and what was native to the enframing of digital technology itself: copies of data, for free (or nearly free). Something for nothing. A customer would have been much more wary of such a proposition, but consumers are like honey badgers, they don't give a shit.

    So, as interesting a lament as the article is, in fact, it points at large issues it cannot address (customer v. consumer) and also the disappearance of HP and its way of doing business. My wife worked at HP for 25 years, so I have some insight on this as well. The HP way started to collapse in the 1990s and took a BIG hit in 2001 with Carli Fiorina's incompetent reign at HP 1999 - 2006. She and her cohorts dismantled HP and the HP Way part by part, and basically gutted the company. Now it is basically a subsidiary of Compaq, even though it's called HP, most of the important decisions are coming out of Texas, not Palo Alto. I remember hearing back in 2000 how the HP way was under attack and people lamenting the "good old days" at HP. I think the article has a lot of that nostalgia clouding its view.

    How we get out of the infinite regress of infantile consumerism remains to be seen. I am thinking that when oil production goes into a permanent decline after 2017, that's going to evacuate a lot of wealth that was being pissed away on meaningless junk, and people will have to snap to attention and get on the stick or experience enormous suffering. At that point, the ICT industry will evolve customers and relationships. How that will evolve out of the massive monopolisation process from above seems unlikely, so I would think it will have to come from below as consumers empower themselves back into being customers working with companies to get (work/play/etc.) done, and then become citizens who are compassionate and contributing active members of a society instead of taxpayers griping about "the gubmint".

    --
    Shoes for Industry. Shoes for the Dead.
    1. Re:diff:customer,consumer by Anonymous Coward · · Score: 0

      How we get out of the infinite regress of infantile consumerism remains to be seen.

      Back in Granddad's day, the whole family worked on the farm from dawn to dusk, six days a week. Dressed up on Sundays and went to church. For entertainment, they listened to classical music and weather reports on the radio.

    2. Re:diff:customer,consumer by JBHarris · · Score: 1

      This is one of the most cohesive, insightful comments I've read on slashdot in quite a while. Huzzah to you. I would take your categorization a bit further and say that we can apply it to all sorts of mediums, groups, efforts, etc..

      Going off-topic, but bear with me.

      My HOA has 87 homes. Of those 87, there are 8-10 of us that reliably go to the monthly board meetings (of which I am treasurer), and *maybe* 15-20 will show up at the annual meeting were we discuss important issues such as repaving the road ways, where to keep our money, what the budget should be, whether or not to hire an outside management firm, the status of our covenants and restrictions, and so on. The VAST majority won't even return absentee ballots when we send them with a self-addressed stamped envelope. All they have to do is sign and return. We tallied up the results last night, 16 households returned votes. 16 out of 87 returned votes. 16! These same people will complain to an email address if the grass isn't cut, or if their neighbor doesn't pick up their trashcan on time, but they can't be bothered to come listen to what is important at the annual meeting. We're talking about 2-3 hours, ONCE A FREAGGIN' YEAR! I mean c'mon, skip that episode of American Idol and do something productive.

      Like I said, I haven't read any truly useful posts in a long time here on /., so I just wanted to take a minute and thank you. If I had mod points I would've used those instead.

    3. Re:diff:customer,consumer by k6mfw · · Score: 1

      A customer has a relationship with the provider

      Post Of The Month! Great article, should be in a magazine illustrating difference of customer and consumer (which the latter is "they" don't care about them, only want them to consume).

      --
      mfwright@batnet.com
    4. Re:diff:customer,consumer by Ralph+Spoilsport · · Score: 1

      thanks!

      --
      Shoes for Industry. Shoes for the Dead.
    5. Re:diff:customer,consumer by Ralph+Spoilsport · · Score: 1

      thank you! Appreciated!

      --
      Shoes for Industry. Shoes for the Dead.
    6. Re:diff:customer,consumer by Anonymous Coward · · Score: 0

      Couldn't disagree more about GP's lack of insightfulness. Obvious sprint toward a libertarian anti-governmental rant and then a truly bizarre remark about sloth/apathy being the same thing as the honey badger meme (apparently the dual extremes of meaning of the phrase 'don't care' momentarily escaped GP -- epic analogy fail).

      Society's fundamental construct is specialization. It's not a flaw, but a **feature** that your HOA runs just well enough that 85% of the members don't feel the need to break out pitchforks (or endure a 3 hour managerial meeting) annually. I've been to HOA/PTA/Guild meetings, and they remind me of non-agile corporate manager meetings. I hate those 3-hour time-suckers when I'm getting paid to attend, generally.

      It's a **good** thing that you get 15% attendance. It means things are being run roughly tolerably. See, most folks want to live their own lives without that particular flavor of drama. Sure, they'll grumble about some aspect, but most of the grumbling is ill-informed FirstWorldProblems shit. More importantly, most of it will cancel out (some mad about the cost, others mad about decisions made too cheaply). I'm to the point where I trust a half dozen of my peers (aka the really active members) to pick a bank, get bids for a paving contractor and to make snap decisions to protect our property values (covenants on materials for roofs and fences, no miniponies, no billboards, no sublets, or whatever). They'll be within a standard deviation of where the compromise should have been, usually.

      Whenever I hear libertarians rant about people needing to step up and own their own destinies, in parallel with ideas involving getting rid of 'nonessential' government, all it reminds me is how incredibly nice it is to not have to be my own safety tester for frickin' everything: water, fresh produce, canned goods, butchered meat, roads, fire suppression in hotels, electrical/shock hazards, and so on ad infinitum. Caveat Emptor is a shitty alternative to regulated quality/safety standards overseen by nonprofit (i.e., dispassionate, disinterested) guardians. I trust local/state/county/federal agencies a furlong farther than I trust Corporate anything.

    7. Re:diff:customer,consumer by Anonymous Coward · · Score: 0

      Agree, OP was mostly a rant. Two people went overboard in praise and the mods noticed.

  27. Lawsuit Uber Alles by gelfling · · Score: 1

    When EVERYONE becomes a patent troll and predatory lawsuit machine are those things still bad? Best case, the whole tech industry will implode into not making or creating or selling ANYTHING preferring instead to make all their money by suing each other continuously and shifting the same unproductive bag and cash back and forth among them.

  28. Shifting? From what? by tomhath · · Score: 1

    The old HP was a great company, but it was always atypical. Suggesting the there has been a shift because few if any other companies followed Mr. Hewlett's and Mr. Packard's model is a bit of a stretch.

  29. Who are the customers anyway by Anonymous Coward · · Score: 0

    We've had this before. The guy doesn't understand who Google's and Facebook's customers are. Then, there are the sheep.

  30. When times get tough.. by kheldan · · Score: 2

    When times get tough, you find out what people are really like. When you're living in times of plenty-for-all, it's easy for people to be kind and generous. The truly good, nice people won't change much, if at all, but the rest? The pretty mask and the kid-gloves come off. Businesses are run by people, and they reflect who those people really are.

    --
    Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
  31. Re:ok, like IBM and others didn't exploit customer by mcgrew · · Score: 2

    Huh?? PCs were around before the IBM PC, although they were called "microcomputers" back then. The IBM PC was a hit because IBM designed and manufactured it, and the mantra was "nobody ever got fired for buying IBM". IBM pretty much wiped out every other microcomputer manufacturer except Apple after that, for almost ten years when Compaq cloned IBM's BIOS and produced a faster, more full-featured, cheaper PC that would run all the programs IBM's PC did.

    IBM PCs never locked customers in with support contracts and being the only source for spare parts and upgrades, and in fact there were a whole lot of companies selling memory, hard drives, video cards, etc. for it. These spare parts were always commodities, and as soon as Compaq came along you could put an IBM board into a Compaq and vice-versa with no problem whatever.

    You're confusing their PCs with their mainframes, which do lock customers in with support contracts and being the only source for spare parts and upgrades, but so did every other mainframe maker.

    In short, you're 100% incorrect, kid. Ask your grandpa first next time.

  32. Re:ok, like IBM and others didn't exploit customer by Alien+Being · · Score: 1

    Please list the companies that told you that. I'd really like to know.

  33. Re:ok, like IBM and others didn't exploit customer by kheldan · · Score: 1

    Corporate culture has brainwashed people into believing that you can't have a happy, healthy, productive life without being "connected" to everyone else 100% of the time through online services and smartphone. The irony is that people are even less connected to each other than they've ever been, since everything online is just an illusion of that. Words on a page and pictures on a screen can't ever take the place of actual face-to-face interaction with other human beings. The sooner people come back around to that very basic fact, the better off everyone will be.

    --
    Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
  34. Capitalism by Anonymous Coward · · Score: 0

    Boo Hoo this is just Capitalism at work.

  35. I'll take wordflation for $1000, Alex by Anonymous Coward · · Score: 0

    I've heard it said that English is a living, evolving language. It's new words like this that make English deserve to die.

  36. Re:ok, like IBM and others didn't exploit customer by Anonymous Coward · · Score: 0

    Actually they don't. I have Spotify fully disconnected from Facebook.

    Log in to Facebook to create your Spotify account.

    See?

    There is no other option. So, actually, they do.

  37. Re:ok, like IBM and others didn't exploit customer by CrimsonAvenger · · Score: 1

    my father in law is a millionaire and he never uses facebook.

    I am NOT a millionaire, and never use Facebook.

    Your point was?

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
  38. Re:ok, like IBM and others didn't exploit customer by Hatta · · Score: 1

    PCs caught on because clone makers *didn't* charge ridiculous amounts for their hardware and didn't lock in customers with support contracts, etc.

    --
    Give me Classic Slashdot or give me death!
  39. Silicon Valley History in a calendar by Anonymous Coward · · Score: 0
    That artwork appears to be the 2012 version of the map (except that SAP's now on it, and it wasn't there in the version of the 2012 map that I saw).

    The gallery of archived calendars is a really cute encapsulation Valley History from 1990-2012. You can see the boom, the bust, and the slow shift from names of companies that made stuff ("stuff" being "chips" and "firmware") to fluff. I was pleasantly surprised surprised to see Molex still around locally. And SGI, although they're presumably only building toys for a very select group of customers.

  40. Re:ok, like IBM and others didn't exploit customer by NotSanguine · · Score: 1

    These spare parts were always commodities, and as soon as Compaq came along you could put an IBM board into a Compaq and vice-versa with no problem whatever.

    That's not quite true. The original Compaq PCs were *not* plug compatible with the original IBM PCs. Also, IBM moved beyond the ISA bus to MCA bus, which was, most certainly, proprietary. At the same time, Compaq was pushing the EISA bus which was almost as (un)successful (at least in consumer terms -- the Corps bought lots of MCA and EISA hardware) as the MCA bus.

    But I guess that was so long ago you've forgotten the bus wars.

    --
    No, no, you're not thinking; you're just being logical. --Niels Bohr
  41. Re:ok, like IBM and others didn't exploit customer by cpu6502 · · Score: 1

    >>>the mantra was "nobody ever got fired for buying IBM". IBM pretty much wiped out every other microcomputer manufacturer except Apple after that, for almost ten years when Compaq cloned IBM's BIOS.....

    You make it sound like the IBM PC was instantly dominant when it was released (1981) but that wasn't the case. It wasn't until six years later that the PC (and clones) became the #1 selling computer. Prior to that point it was the Commodore 64 (1983-86) and the Atari 800 (1981-82) that were the best-selling models.

    Source: Ars Technica

    --
    My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
  42. HP vs Apple by Anonymous Coward · · Score: 0

    HP is out of the PC business because it failed to make products that appealed to customers. Apple is wildly successful because they do. There may be niggles about the way they do things, but it is inarguable that they spend more effort than anyone making an easy-to-use product for the masses (90% of the public vs 100%).

    That's the definition of catering to your customer and valuing them.

    HP didn't, and they are now out of the PC business.

  43. A very good point. by bdwoolman · · Score: 1

    I have never purchased anything from Google. I use their email and search engine and let them crawl its content so I can be pitched with some fairly unobtrusive ads. I guess I am a viewer or a user. Maybe even a mark. I am a Microsoft customer. They do push stuff at me and I push back. But then so do car salesmen, and the guy haunting the men's department at Macy's. It is, and always has been, a caveat-emptor kind of world. Basically, most people seem up to it and rarely get fleeced with everyday purchases. With tech, however, it is simply a lot easier to trick people into buying stuff they do not need, because, frankly, most people have very little idea of what they are buying. Tech is shyster heaven. One laments, perhaps, the fading of the academic ethic (or at least the pretense of it) that characterized the early years of commercial tech. But to my eye it is just business doing business as usual. Never very nice.

    The FOSS movement, for all its flaws, is a ray of sunshine in the 'dark' world of commerce. It really is a pleasant surprise. Like Jazz, maybe. Creative energy from the bottom up. If not always polished or complete, then beautiful nonetheless... But face it... capitalism works. It generates wealth far better than more nobly conceived economic experiments. But it will always spin out of control if left only to itself. Price fixing? Monopolies? Fraud? Markets do not self-correct these built in problems. However, the implementation of thoughtful measured regulations and laws can really put government squarely into the same role with finance and industry that coaches and referees play in sports. Without them... chaos. But too much from them and they spoil the game. In the end it is all about optimizing "the public good." whatever that is at a given moment

    The scary thing is corruption. And for that there seems to be no answer. And over the last decade there seems to be more and more of it. On every side of the aisle. And at every level of power. Yikes!

    --
    "No fear. No envy. No meanness." Liam Clancy
  44. Somebody Chane his Diaper by Biggseye · · Score: 1

    This Guy comes across as a Socialist that does not understand that without a profit The internet would die. Money Making Commerce is what makes the internet viable without it we would be back to pre-www days. He really needs to get a grip.

  45. the net result is .... by Coeurderoy · · Score: 1

    That when you look at IT related job offers in the Silicon Area it is hard to find something that is NOT "advanced breakthrough customer advertisement mobile targeting management" platform (in the cloud of course)...

    And this is quite boring in the end, and soul crunching, what self respecting geek really wants to do this, of course making money is cool, but spending your life....

    so where are the really interesting companies ....

    1. Re:the net result is .... by DigiShaman · · Score: 1

      What your witnessing is but a small portion of a much larger picture. You're seeing the transfer of wealth from this nation to 3rd world countries that can do our jobs at a fraction of a cost. Or to put it in another way, you simply can not have a nation of consumers if said nation isn't producing any work. So until our own wealth dries up (and it has been), Silicon valley will not be focusing their advertisements overseas yet. By the time they do, it will be too late to compete in that market.

      Now, apply this same exportation of wealth and workforce to just about every industry in America. Now look at our national debt. Ya, we're that fucked!

      --
      Life is not for the lazy.
    2. Re:the net result is .... by inode_buddha · · Score: 1

      Somebody mod this guy up, please - I already commented in this thread to the same effect.

      --
      C|N>K
  46. Don't 'sploit me bro! by RabidReindeer · · Score: 1

    "How are the exploited if they are signing up willingly?"

    You can be both. Ever read a book where a con man invoked the cliché of "sheep shearing themselves"? Or less savoury agricultural inducements?

    Literature aside, that was basically what tobacco advertising has always been about. For that matter, anti-persperants, junk food, and any number of other commodities that have their darker aspects.

  47. Re:ok, like IBM and others didn't exploit customer by Anonymous Coward · · Score: 0

    Well I use Facebook AND want to be a millionaire...

  48. Re:ok, like IBM and others didn't exploit customer by sjames · · Score: 1

    No, PCs caught on because the clone manufacturers jumped in and created a sizable market with plenty of competition. That allowed consumers to afford them.

    At the same time, there was the true blue PC sold by the suit and tie brigade to convince corporate America that it was a 'serious' product and not just a consumer toy.

  49. Insult to injury by KingSkippus · · Score: 1

    The insult to injury is that it's not really "customer" exploitation at all. Most of Silicon Valley's customers are companies buying advertising. It's consumersploitation. Working at a huge MNC myself, I'm keenly aware of the difference between customers and consumers.

    1. Re:Insult to injury by AwesomeMcgee · · Score: 1

      Great point! So many people look at business models and completely forget to recognize when their personal role is not "customer" even though they're using a service.

  50. Re:ok, like IBM and others didn't exploit customer by JasterBobaMereel · · Score: 1

    PC's caught on because they were made from off the shelf hardware, and so could be made by multiple completing companies, and so were cheap ....

    IBM designed them, and sold them for huge amounts, until someone realised they could undercut IBM ...

    --
    Puteulanus fenestra mortis
  51. Re:ok, like IBM and others didn't exploit customer by Anonymous Coward · · Score: 0

    Could you please list the companies you applied to that asked this? Because I'm engaged in a job search myself right now, and have interviewed and phone screened with 15-20 different companies. And not a single one has asked me for my Facebook account details. I can't help but think that you're either making shit up because it gives you a reason to complain about Facebook.

    I have a wild and unconventional idea for all you people who are terrified of someone looking at your Facebook profile: stop posting your rape fantasy videos, kitten torture videos, and personal bondage and ball torture photos on your Facebook profile. If somebody just searches for your name on Facebook, and is upset enough by the public view of your profile that they eliminate you from the competition for a job offer, then you're doing Facebook way, way wrong. Somebody looking at my profile - public, friend, friend of a friend, or even me - is going to see: a few photos of me at family events, with friends, etc, a few checkins from concerts and a pub or two, and a handful of likes of a few musicians I like enough to care to see announcements and information from when it's posted. That's all that I use Facebook for, period.

    If somebody demands my passwords, the answer is "no, interview's over" simply on principle - I will not give out my passwords unless you've got a court order.

    But if somebody "looks me up" by searching for my name - who gives a shit? Congratulations, they'll find out I'm a stocky 30-something white guy, with an Asian girlfriend, 2 white brothers, 2 white parents, and - here's the real shocker - my parents have a dog! Oh, and I tend to like classic rock and alt-country music! Good god, I'm so controversial. There is nothing on Facebook that you haven't put there, or allowed to be put there. If you have the type of friends who will upload your rape fantasy vids and bondage photos and tag you in them, then perhaps you should find some more sensible friends to hang out with.

  52. I for one don't feel unfairly exploited by Rostin · · Score: 1

    Google and facebook haven't tried to keep their business model a secret. They provide services to me for "free" (in terms of actual dollars) in exchange for using my personal information to create more precisely targeted advertising. So far, I feel that I have benefited from this arrangement, so I'm not sure how I am being "exploited." Does the author believe that facebook and google benefit "too much" relative to the amount that I benefit? How can he tell? Shouldn't I be the one to decide that? (Actually, more than anything else, this entire line of thinking reveals how the word "exploitation" is mostly used for emotional effect, not to convey objective information about a relationship. But I digress.)

    I am sympathetic to this guy's complaints to the extent that these companies have actually iied to people, but beyond that, it sounds like pointless whining that not every company makes its money the way Intel and HP used to.

    1. Re:I for one don't feel unfairly exploited by Anonymous Coward · · Score: 0

      I'll second that but for a different reason. I don't feel exploited either, and that's because I elected to stay away from Facebook, Google, Apple, and other explotative companies. And before the clueless legions arrive and try to claim, "But you NEED facebook to talk to your friends and family!!!one!!" I've been keeping in touch with them just fine without ever getting near FB. It's only if you've been utterly brainwashed that you believe such claptrap.

      You can only be exploited with your permission. No one is holding a gun to your head and making you decide to use for-profit closed services to communicate online, and if you do that, well, that's your choice. It's fine to make that choice, but don't go crying about it afterward. Grow a backbone and some personal responsibility. The business models of FB, Google, and others have not been a secret.

      So: those who want to use those services can. Those who don't want to, don't have to. I'm failing to see the exploitation.

  53. whereas the old model by Anonymous Coward · · Score: 0

    was to puff up a completely useless approach with lots of marketing, a high dysfunctional head count, and post
    office box sales offices in EMEA, the americas, and asia. float that gilded turd on nasdaq, cash in, and disappear.

    it doesn't seem that different

  54. Headline by slasho81 · · Score: 1

    Was it so hard to write "Silicon Valley Values Shift To Customer Exploitation"?

  55. here we go again by Charliemopps · · Score: 1

    Everyone will use this as an argument against capitalism and libertarianism. As if we lived in a truly capitalist or libertarian society. Hell, we're not even in a true democracy by it's very definitional.

    Capitalism only works as intended when unfettered by regulation AND it is relatively transparent. Unfortunately our economic system is drowning in regulation and most of that regulation does nothing more than obscure the true market. All regulation of financial markets should be for the sole purpose of increasing transparency into that market. An example of good regulation is weights and measures legislation. A gallon of a fluid is the same size no matter where you get it. Date stamping on foods. Ingedients lists. etc... etc...

    We don't need legislation that dictates what these companies can and can not sell... that never works. We need laws that require them to disclose obviously what it is they are selling, what they will do with your information, and how long it will be stored. Then the public can make informed decisions about what they are doing online rather than have the government trying to constantly catch up to technology so they can "protect" us.

  56. So they win by offering products people flock to?

    This is bad because...?

    --
    (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
  57. Re:ok, like IBM and others didn't exploit customer by Anonymous Coward · · Score: 0

    Why do you think that 'advertising' (spelled with one 'd') should have two when abbreviated?

  58. Re:ok, like IBM and others didn't exploit customer by Little+Brickout · · Score: 1

    That's not quite true. The original Compaq PCs were *not* plug compatible with the original IBM PCs.

    Didn't the Compaq Portable use the same 8bit ISA expansion cards as the 5150 IBM PC?

  59. Re:ok, like IBM and others didn't exploit customer by Johann+Lau · · Score: 1

    So in your world there's only the option of either being a total zero, or being into kitten rape -- wait, what?

    Good god, I'm so controversial.

    And of course you assume everybody else has to be a mediocre rollover like you are, right?

  60. Stupid terminology, however... by CanHasDIY · · Score: 1

    All unilateral contracts are, by definition, exploitative of the party not in control of the contract terms; Think cell phone contracts.

    noted, "customersploitation" is an abjectly moronic term. I prefer the normal pronunciation myself; to quote one B. B. Rodriguez, "the 'X' makes it sound cool."

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
  61. Re:ok, like IBM and others didn't exploit customer by Anonymous Coward · · Score: 0

    You should value your privacy more. I bet these guys value it more now. http://en.wikipedia.org/wiki/Us_census#Historical_FBI_use_of_data

    It's the little things that get you. The ones you thought unimportant. And yeah, you're being exploited, whether you realize it or not.

  62. Re:ok, like IBM and others didn't exploit customer by Anonymous Coward · · Score: 0

    So in your world there's only the option of either being a total zero, or being into kitten rape -- wait, what?

    Could you please explain to me what could possibly be so controversial about your Facebook profile that an employer would immediately refuse to hire you over, then? I mean, I'm seriously at a loss here. What are YOU putting on YOUR Facebook profile that is so shocking that employers will terminate the discussion instantly?

    And of course you assume everybody else has to be a mediocre rollover like you are, right?

    No, I assume that everybody else is smart enough to figure out how to make themselves appear to be a "mediocre rollover" on their Facebook page by engaging in a little practice we call "editing." Seriously - please explain to me what's so controversial and shocking about your Facebook page?

  63. You're NOT facebook's "customer" dolt! by tekrat · · Score: 2

    You are a marketable data point. That's all. You're not their customer, or even their consumer. You're their unpaid intern, creating content for their benefit, so that more marketable data-points join the hive-mind.

    --
    If telephones are outlawed, then only outlaws will have telephones.
  64. Re:ok, like IBM and others didn't exploit customer by Johann+Lau · · Score: 1

    Dude, it's not about my facebook profile; heh, I hardly use the thing. I just like to think further than my own fucking nose; I'm aware this concept probably boggles your brain. And hey, if you can speak your mind without pissing anyone off, what does that say about your mind?

    Yes, it's possible to not speak your mind in public. It's also possible to not make a stand, ever, or to always do so anonymously (which is kind of an oxymoron IMHO). I just don't find that desirable -- I'd much rather put needy snoops in their place. Kinda like it's possible to not have children, but we prefer to instead jail child molestors.

    And before you ask, I'm not saying shoot them outright, I'm saying roll your eyes unto them, so they may blush; instead of rolling your eyes at the other party, which is just fucking stupid. That's why I usually skip to the insults; none of this can be explained to someone older than 15 who doesn't already know it. Those who never move don't notice their chains, la-di-blah -- you're either angry or part of the problem.

    Also, what is this "controversial" you are speaking of? That huge groups of people are spineless turds isn't "controversial", it's just that these same turds wouldn't like to hear it.

  65. Re:ok, like IBM and others didn't exploit customer by Anonymous Coward · · Score: 0

    Don't men say they read Playboy for the articles too ? Oh yes, they get value from the articles. Review your job description, it says troll.

  66. Re:ok, like IBM and others didn't exploit customer by Anonymous Coward · · Score: 0

    Dude, it's not about my facebook profile; heh, I hardly use the thing. I just like to think further than my own fucking nose;

    Apparently not, since you seem incapable of grasping the concept of "editing" - whereby you select what you are going to present to the world, rather than vomit out everything that passes through your stream of consciousness. Tell me, is your CV / resume a complete recounting of every thought that's ever crossed your mind, including the last shit you took? Why or why not?

    The fact that I don't post my political, religious, sexual, health, and other details on my Facebook profile doesn't mean I'm "chained," or "spineless" - or even that I'm incapable of engaging in controversial, unpopular, or even downright loathsome activities - it means there are things I'm comfortable sharing with anybody who cares to look (which I don't mind putting on Facebook), and there are things I'm not (which will never be posted to or talked about on Facebook). Facebook didn't populate one bit of information for me - if you put something up there that you don't want to share with the world, then it's your own fault. Just like if you publish something to any other site, it's your own fault if it embarrasses you down the line - you *chose* to publish it.

    This whole "oh I'm so skeered that Facebook will ruin my job opportunities" strikes me as a bunch of aspie cunts whining about how everything they like is geeky, and they're afraid they'll be made fun of if they say they like it. If you're that insecure, that's your problem, not mine. But please don't try and pretend that your antisocial defects make you a man of superior, discerning taste.

    There are plenty of reasons to dislike Facebook - "but... but... they'll SHOW MY PROFILE THAT I PUBLISHED to the PUBLIC if somebody searches for me!" is not one of them. That's what's known as a "use case."

  67. Generalize this concept by inode_buddha · · Score: 1

    Its not just customers. Its also employees who have been exploited worse and worse for decades. And its not just in IT industry or Silicon Valley - its all of the US employment spectrum. Just look closely over the last 20 or 30 years, you'll see it easy enough.

    --
    C|N>K
  68. Re:ok, like IBM and others didn't exploit customer by Johann+Lau · · Score: 1

    Tell me, is your CV / resume a complete recounting of every thought that's ever crossed your mind, including the last shit you took? Why or why not?

    Of course not. Just like a complete recounting of every thought that ever crossed someone's mind should not be their resume.

    a bunch of aspie cunts

    Hmm I can't speak for others, but I'll totally accept that for myself hahaha... I kinda like it.

    There are plenty of reasons to dislike Facebook - "but... but... they'll SHOW MY PROFILE THAT I PUBLISHED to the PUBLIC if somebody searches for me!" is not one of them. That's what's known as a "use case."

    Uhm yeah I agree, but this isn't about Facebook -- you either misunderstood me or are beating up a strawman. Anyway, Facebook just enabled (or should I say, motivated) people to have website-ish things, who wouldn't otherwise. And that apparently gave employers the idea they should know these things, just because it's easy -- not because they need to know, not because there is actually any measurable gain of knowing, just because they can. It's not like it's actually useful for a background check or anything else serious, seeing how you can fake it completely; I think it's mostly to see if people are wearing enough flair. That kind of "culture" is what pisses me off. I don't like Facebook either, but for different reasons, not because people use it for evil bullshit on top of the evil bullshit Facebook is pulling.

    But generally, and while I'm ranting, I'm not so convinced of the whole choice thing. When someone says "this is great product, the price is a steal, my baby blue eyes cannot lie", I either have the experience to see through that, or don't. But there is no choice involved; that's just what intelligent people tell themselves as their fellow brains prey on the stupid. It's a common defect to think it's okay to see if someone falls for X, but not okay to fall for X. Yeah fucking right.

  69. Just more non-productive wealth generation by swb · · Score: 1

    This just seems like another form of manufactured wealth creation, where business isn't really producing anything new or novel but instead rearranging what already exists.

  70. Wait, google is just about making money? by Nyder · · Score: 2

    while I agree Facebook, Apple, MS and others are just about making money, Google isn't.

    Google has been about making products for people. some have been miss, and others have been a great hit. Sure, they make money from Advertising, yet before them, search engines sucked.

    They made a phone OS that is a big success, yet they aren't charging phone manufactures a tax to use their OS or another phones OS. Can you say the same about MS?

    Look, I might get labled a Google fanboy, but all of the companies listed in this article, they are the only one who seems to actually care about their customers and the products they are working on.

    --
    Be seeing you...
    1. Re:Wait, google is just about making money? by Anonymous Coward · · Score: 0

      If Google is "about making products for people", then why is it that so much of Google's stuff stops working if I don't give them my Cookie or my ID? It's not a problem of technical difficulty of providing me the service without a cookie.

      If they want to show me their two lines of text adds on top of the search results? Fine.

      But nudging me into giving them my identity for free so they can start profiling and tracking me and selling my data: this doesn't have anything to do with "making products for people".

      Could it be that one reason there's no painless, workable "no-tracking" mode in Firefox is because the good money coming from Google is having an influence on Mozilla's priorities?

  71. Free-no-more-Gnome3 by Anonymous Coward · · Score: 0

    Gnome3 is even pimping for the Sharecroppers

  72. Re:ok, like IBM and others didn't exploit customer by vlm · · Score: 1

    Until I got my current job, every previous would-be employer asked what my FB ID was. When I told them I didn't have one, I was told directly that the interview was over, and that someone without FB was a fossil too ignorant/old/stupid to be working there.

    I call astroturfing by a FB employee unless your applied for job title was "social media consultant". Everyone in mgmt where I work hates FB with a passion because FB seems to inevitably get the workplace drawn into the middle school girl drama that is FB. "Well coworker A posted on my wall that coworker B's butt looks fat in those jeans on coworker Cs page so I want you to switch her shift times and seating arrangement so I don't have to work with her and coworker D makes me cry because she won't accept my friend requests and its all your fault because you're the boss and you guys act like you're baby sitters half the time anyway so you gotta be baby sitters for the bad parts too". Oh and stupid mandatory corporate wide training videos about not acting like an official corporate representative on FB merely because FB happens to list that you work there, and not even tangentially mentioning internal corporate information on FB, not revealing internal corporate information such as coworkers home addresses and phone numbers or even work numbers on FB "Oh random FB person you're unhappy with our service? Here's our CEO's direct cellphone number". And not posting pics of the inside of our labs and data centers and to a lesser extent offices on FB. The agony of FB goes on and on, and where I work they more or less officially hate it. There's a palpable sense of relief when they hear that I don't have a FB account. At least there's one thing they won't have to yell at me about. Perhaps as a result of all this, only about 1/3 of my coworkers have an account on FB, or at least 2/3 are smart enough to not admit they have an account and completely separate their public/private lives.

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  73. Re:ok, like IBM and others didn't exploit customer by vlm · · Score: 1

    Could you please list the companies you applied to that asked this? Because I'm engaged in a job search myself right now, and have interviewed and phone screened with 15-20 different companies. And not a single one has asked me for my Facebook account details. I can't help but think that you're either making shit up because it gives you a reason to complain about Facebook.

    Or he's a paid astroturfer employed by FB. I'm calling him out on that, that's my theory why he made up a story like that. Thats why he's posting AC, if we looked him up we'd find current employer listed as media relations or something like that at FB.

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  74. Abhorant technology is a reflection of "society" by Anonymous Coward · · Score: 0

    One should remember that the technology is created from the motivations of those who create it and that IT is not the only place where unethical (and worse) behaviors occur. It happens everywhere, to everyone, all the time. When the foundational values are abhorant, so is the result of virtually everything. Likening the internet to "the interrape" alludes to what the foundational "values" of "society" actually are rather than what politicians (and sheeple) spew them to be.

  75. I don't see what the problem is! by Anonymous Coward · · Score: 0

    These are not essential services. They are neither forced upon anyone by anyone nor are they banned. Just 3 years ago we all lived perfectly well without Facebook. I'm afraid of overarching holier-than-thou save-the-world activists. When I signed up for Facebook, or purchased an iPhone, I entered into a mutual contract. I could use Google+ or whatever the hell else is out there if I want. Heck, I could spin up my own site that supports wall posts if I care that much about posting on walls.

    The market will vote with their wallets. I'm sure there have been Nigerian Princes since before humankind invented the word "economy". Just because one person thinks a totally not-enforced behaviour by another person is wrong, I don't want a caustic reaction and tons of ridiculous laws ruining it for everyone else.

  76. Re:ok, like IBM and others didn't exploit customer by MalleusEBHC · · Score: 1

    Old accounts were grandfathered in, but all new accounts require you to go through Facebook. I think they changed this a year ago. I learned this the hard way recently when I tried to create a Spotify account. I've deleted my Facebook account, and I have desire to create a dummy account for bullshit like this.

  77. Re:ok, like IBM and others didn't exploit customer by digitalaudiorock · · Score: 1

    Spelling aside, I actually didn't mean to use the phase "paying for add revenue" either, as that doesn't really make sense. It was a pre-coffee post...what can I tell you.

  78. Do you listen to yourself? by Internetuser1248 · · Score: 1

    "the winner-take-all Internet environment"

    What does that even mean? The internet is more of an 'everybody wins environment', if one can even make any general statements about the internet at all. Any elements of winner takes all in the internet is a result of our economic and financial systems, and also patent and copyright law. There are some exceptions for services like social networking where you need to be on the same service as everyone else to get the benefits of the system, but even that is partly a result of a competitive corporate system. If for example social networking sites used an industry standard data format which you could download from your current social networking site and migrate seamlessly to another one, then the current monopolistic system would likely cease to be a problem. To make such a statement about the internet as if it is an intrinsic property of a distributed self routing information network is just absurd.

  79. Re:ok, like IBM and others didn't exploit customer by mcgrew · · Score: 1

    Well, yes, there were changes; the original keyblard plugs looked like they belonged on a Mac truck, the busses have chenged a couple of times, but I had an IMB XT I bought used, and simply kept upgrading it. Added a Hercules card for graphics, later a VGA card; added a sound card (not available at all from IBM), memory, joystick, none of which were IBM. At one point, the only original parts were the case, power supply, and keyboard; I'd changed out the motherboard for a 386 (probably was the world's fastest IBM XT if you could still call it one).

    One of the reasons the PS2 never took off was because of its parts incompatibility.

  80. Re:ok, like IBM and others didn't exploit customer by mcgrew · · Score: 1

    You're right, it didn't happen overnight, and Tandy and Commodore and others continued to sell relatively cheap computers for the home. I should have said it pretty much killed the CP/M machines that businesses had been using.

  81. What a joke by TonyXL · · Score: 1

    If consumers are being exploited, why are they staying with the company?

  82. Re:ok, like IBM and others didn't exploit customer by Flere+Imsaho · · Score: 1

    Actually they don't. I have Spotify fully disconnected from Facebook.

    Can you explain how you managed that? I want to use Spotify, but I'm fucked if I'll sign up for Facebook.

    --
    It gripped her hand gently. 'Regret is for humans,' it said.
  83. Re:ok, like IBM and others didn't exploit customer by jrroche · · Score: 1

    It appears I'm wrong. I signed up when it was first available in the US and at the time you didn't need Facebook, but it looks like you do now. Which is incredibly stupid.