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Pluralistic: The technopolitics of ad-tech (19 Oct 2026)


Today's links

  • The technopolitics of ad-tech: Spying is good for tech, context is good for publishers.
  • Hey look at this: Delights to delectate.
  • Object permanence: PNH x Mike Ford; Singapore v Far East Economic Review; Publishing v bestsellers; Architecture v security; Vista v everyone; Free Bieber; Belarus sells the sugar bowls; OCCUPY GEORGE; Grey type sucks; Spinal Tap v studio math; Terry Pratchett x $10t coin; Boy Scouts x copyright maximialism; Canadian Tories x DRM; Herman Cain's 9-9-9 plan; ACLu v secret laws; Fined for suing the cops who shot you; Chicago PD steals millions for cop toys; Turing's Law; Copyleft v Vizio; Trump's killswitch.
  • Upcoming appearances: Vancouver, Victoria, Ottawa, Vienna, Kilkenny, Oxford, Sheffield, Virtual, Oxford, Montreal.
  • Recent appearances: Where I've been.
  • Latest books: You keep readin' em, I'll keep writin' 'em.
  • Upcoming books: Like I said, I'll keep writin' 'em.
  • Colophon: All the rest.



A halftoned, yellowing scan of a 1940s page of newspaper ads. Emerging from the ads is a halftoned fist clad in spiked brass kuckles.

The technopolitics of ad-tech (permalink)

"Technopolitics" are the politics embedded in technology. The Ur-text of technopolitics is "Do Artifacts Have Politics?" by the rock critic turned scholar Langdon Winner:

https://faculty.cc.gatech.edu/~beki/cs4001/Winner.pdf

With "Do Artifacts," Winner demands that we move beyond the idea of technologies having "intended consequences" and "unintended consequences" and towards a political economy of tech. In service to this, he divides the politics of artifacts into three categories:

I. Artifacts that have politics embedded in them by their creators, like Robert Moses's infamous bridges over the Long Island parkways. According to Moses biographer Robert Caro, Moses deliberately specified that these bridges must be too low for a city bus to pass under, in a bid to block Black people from traveling from New York City to the beaches he'd developed on Long Island.

Today those bridges are more than a century old, and they are still too low for city buses to pass under them, and this continues to mean that people who don't own private vehicles find it more difficult to get to the beach, and as it's still the case that race is a predictor of low incomes, those are still racist bridges.

II. Artifacts whose politics are accidental but unavoidable. Winner cites a kind of tomato harvester that vastly improved the efficiency of tomato pickers. These harvesters became very popular, which allowed tomato farmers to lay off large numbers of agricultural workers, and also allowed them to price the mechanically harvested tomatoes so cheaply that they crowded out other kinds of tomatoes.

Because these machines created a large pool of unemployed workers, they shifted power from labor to capital, and because these picking machines were too rough for all but the hardest varietals of tomato, they changed the flavor profile of tomatoes in America for the worse, towards a bland, tough tomato.

These picking machines were not designed to make workers poorer, nor were they designed to make tomatoes taste worse, but because of their technical characteristics, this was the unavoidable outcome, the inextricable politics of these machines.

III. Artifacts whose politics are intrinsic to their design. Here, Winner contrasts solar panels with nuclear reactors. Solar panels may require highly centralized industrial systems to produce, but once they are in the field, solar panels are compatible with looser, less coordinated political arrangements. A world of small anarchist communes is fully compatible with solar energy.

Contrast this with nuclear reactors: the prudent ongoing operation of a reactor requires a highly centralized state that is capable of fielding reliable, trustworthy independent inspectors. This state must also be capable of exercising the coercive power to shut down badly maintained or incompetently operated reactors.

The politics of nukes are the politics of a centralized, powerful state; the politics of solar are less determined. Solar is compatible with a wide variety of political systems, including (but not limited to) weak, decentralized states.

(For a further exploration of "Do Artifacts Have Politics?" I highly recommend Ginger Coons' reading guide:)

https://www.not-so-obvious.net/reading-do-artifacts-have-politics/

I really like Winner's framework for exploring technopolitics, but I have my own gloss on it. Winner's framework doesn't explicitly contemplate the idea of technological countermeasures. For example, what if someone were to design a city bus that was low enough to fit under Robert Moses's bridges? At that point, they'd cease to be "racist bridges," and merely become "bridges built by a racist":

https://locusmag.com/feature/commentary-cory-doctorow-technopolitics/

Which brings me to the technopolitics of ad-tech. Lots of people think that advertising is "the original sin of the internet," setting in motion the surveillance dystopia that is closing in on us from all sides today:

https://pluralistic.net/2026/10/17/mercenary-spyware/#discover-tech

I think this is wrong. I think that finding ways to communicate ideas and pitches to the general public is fine. Without some channel for reaching people with ideas and propositions they may not be familiar with, it would be infinitely harder to reach people for political causes. It would also be harder for new books, movies and music to find new audiences. It would be much harder to get people out to your independent craft fair, your zine show, or your No Kings march.

For me, the internet's original sin isn't advertising, it's surveillance. Contrary to what you have been told – and pax Winner's framework – the internet is fully compatible with privacy:

https://pluralistic.net/2025/10/31/losing-the-crypto-wars/#surveillance-monopolism

It wasn't the internet's technopolitics that made it a surveillance nightmare. It was just plain politics. Specifically, our politicians decided to stop enacting and enforcing privacy laws. The last consumer privacy law we got in America was a bill that made it illegal for video store clerks to disclose your VHS rentals:

https://en.wikipedia.org/wiki/Video_Privacy_Protection_Act

(As I type these words, the Supreme Court is poised to eliminate even that dried-up old crumb of privacy protection:)

https://slate.com/news-and-politics/2026/10/supreme-court-privacy-rights-case-bork-kavanaugh.html

The widespread phenomenon of ad-tech companies spying on us is the result of the decision to allow them to do so. That decision has had innumerable negative downstream effects, such as skyrocketing "surveillance prices":

https://pluralistic.net/2025/12/11/nothing-personal/#instacartography

And collapsing "surveillance wages":

https://pluralistic.net/2024/12/18/loose-flapping-ends/#luigi-has-a-point

It's created vast surveillance databases that are critical to Trump's racist pogroms, providing dossiers and precise location data on the people ICE kidnaps to Salvadoran slave-labor camps:

https://pluralistic.net/2026/03/10/ice-tech/#foreseeable-outcomes

Surveillance also promotes oligarchy. Without surveillance, oligarchs must give up more of their fortunes to keep the public happy, because the alternative is spending even more money on guards to keep the public from building guillotines on their lawns. Surveillance lets oligarchs make targeted strikes on restive radicals, which is much cheaper than broad-spectrum policies that make us all better off and neutralize the case for guillotines:

https://pluralistic.net/2025/06/26/autostabilizer/#slicey-bois

These are the technopolitics of surveillance, not advertising. There is nothing about advertising that demands surveillance. For centuries, advertising was not meaningfully linked to surveillance. The decision to fuse surveillance with advertising was just that – a decision, not an inevitability.

Any time we forget this, we let spying tech bosses off the hook. After all, if advertising demands surveillance, then tech bosses are just the avatars of the great forces of history, prisoners of the imperative to spy in order to advertise. By remembering that surveillance advertising is a choice, we put the blame squarely where it belongs: on the guillotineable oligarchs who made that choice, and amassed spectacular fortunes thereby.

Surveillance is political, but surveillance advertising has its own distinct technopolitics, and to understand those technopolitics, we must contrast them with the technopolitics of contextual advertising. Up until a decade or two ago, contextual advertising was simply called "advertising." Contextual advertising is the practice of running refrigerator ads next to articles on cooking and kitchen remodeling; ads for roadside restaurants on highway billboards; ads for Disney vacations in parenting magazines.

Your intuition probably insists that context advertising is less effective than surveillance advertising. After all, surveillance advertising allows a running shoe company to target users who are training for a marathon no matter where they are and no matter what they're doing. Surely this translates into increased "conversions" (clicks and/or purchases, depending on who you're talking to)?

It does, but not by much. Advertisers get about 5% more value from surveillance ads than they do from context ads:

https://weis2019.econinfosec.org/wp-content/uploads/sites/6/2019/05/WEIS_2019_paper_38.pdf

Partly, that's because surveillance ad companies grossly overrate the efficacy of surveillance advertising:

https://peoples-things.ghost.io/youre-doing-it-wrong-notes-on-criticism-and-technology-hype/

But surveillance advertising's anemic returns to advertisers are down to another aspect of the system: its tendency towards monopolization:

https://en.wikipedia.org/wiki/United_States_v._Google_LLC_(2023)

Surveillance is a capital-intensive activity: spying on billions of people as they move through the digital and physical world is incredibly expensive. That is a good part of the reason that online advertising has collapsed into the Meta/Google duopoly, who control about 80% of display advertising.

The harms of surveillance monopolies have a severely distorting effect on policy debates. For example, it's led some anti-monopolists to call for government-issued surveillance identifiers that follow us from birth to death in order to facilitate commercial spying to foster more competition in surveillance:

https://www.thesling.org/what-to-do-about-googles-dominance-of-online-advertising/

Here's the thing about monopolists: they cheat. Google and Meta have an illegal, collusive arrangement to rig the advertising market, overcharging advertisers and underpaying publishers:

https://en.wikipedia.org/wiki/Jedi_Blue

The ad-tech giants have taken in hundreds of billions that they simply can't account for. It's disappeared down a fraud-hole:

https://pluralistic.net/2026/05/25/lying-spies/#spying-liars

All of this has driven the majority of web users to install a privacy-blocker (like EFF's Privacybadger.org), meaning that surveillance ads are disproportionately likely to not even show up in a reader's browser:

https://doc.searls.com/2023/11/11/how-is-the-worlds-biggest-boycott-doing/

So while it's possible that, in a state of nature, a surveillance ad would outperform a context ad, delivering more sales for advertisers and more revenue for publishers, the monopolistic tendency of ad-tech means that publishers earn less from surveillance ads (because more users block them, and because monopolistic ad-tech platforms extract higher commissions), and advertisers see fewer sales from them (because more users block them, and because monopolistic ad-tech platforms extract higher prices).

Context ads, meanwhile, are always going to give power to publishers, because publishers will always understand the materials they publish better than any ad-tech platform could. Commissioning, editing and publishing an article, podcast or video gives a publisher unique and inalienable insight into that material.

Surveillance data about audiences is a kind of ambient vapor floating around websites and places and payments that has to be condensed through a heroic and expensive effort that gives power to whichever company can muster the capital and infrastructure to do so. Meanwhile, information about the content of publishers' offerings arrives pre-refined into ingots that are already in publishers' own possession.

It's possible to run "programmatic ads" without surveillance. Rather than building an ad-tech stack through which publishers transmit sensitive information about their audiences ("Who will pay me to advertise to this 18-34 year old man-child from the outer boroughs who owns an Xbox and has recently researched gonorrhea symptoms?"), we can build systems through which publishers transmit information about their own materials ("Who will advertise to a user with a New York IP address who is reading an article comparing running shoe brands?").

Not only is this possible, but it actually generates more revenues for publishers than the surveillance-based ad-tech stack:

https://techcrunch.com/2020/07/24/data-from-dutch-public-broadcaster-shows-the-value-of-ditching-creepy-ads/

On top of that, publishers who don't gather personal information about users also don't need to show their users those awful pop-up ads asking their permission to gather their data. Everyone hates those notices, and they are yet another negative aspect of surveillance advertising that disappears with the switch to context ads.

An ad-tech stack for context ads is far less prone to monopolization. Such a stack can be "federated," with multiple "demand-side platforms" (the part of the system that advertisers use to place bids for the right to show their ads) all communicating with the same "supply-side platform" (the part of the system publishers use to transmit opportunities to place ads).

This is also in the technopolitics of context ads: they do not tend toward the "efficiencies of scale" that lead to abusive monopolistic middlemen who steal from publishers and advertisers and sell out the public to fascists who want to arrest them and deport them to Salvadoran slave-labor camps.

When the ad-tech sector is composed of smaller companies that are more competitive with one another, it is much harder for any of them to collude to rig the market. That fierce competition also means it's harder to create a cozy conspiracy to lobby together to block privacy laws, and it leaves the companies with lower margins and less retained earnings to spend on those lobbying efforts.

Surveillance ads also promote all kinds of parasitic businesses. The fact that a publisher can serve ads related to users rather than the subject of their media means that sensationalistic and deceptive websites can sell ads that run against content that's totally unrelated to advertisers' products and services. And because it's cheaper to produce lies and garbage, these publishers can undercut the ad prices demanded by high quality outlets and let advertisers reach the same users. This is the whole reason that "chumboxes" exist:

https://en.wikipedia.org/wiki/Chumbox

Just as nuclear power favors a centralized state, surveillance advertising:

  • favors middlemen over publishers and advertisers;
  • tends toward monopoly;

  • favors low-quality media over high-quality production;

  • impedes the passage of privacy laws;

  • provides authoritarian states with an off-the-books, warrantless source of surveillance data.

And just as solar allows for decentralized, anti-authoritarian societies, context advertising:

  • favors publishers over middlemen and advertisers;
  • tends towards pluralism and diversity of voices;

  • favors high-quality media by reserving the lion's share of the rewards to the producers;

  • does not rely on a weak privacy environment;

  • does not militate for "democratizing spying" by issuing every person with a permanent advertising identifier.

There's nothing (necessarily) wrong with building systems to tell people about things you want them to know. There's nothing (necessarily) wrong with paying for media with ads. It's possible for both of these things to go awry, but they are not in and of themselves bad. They have contingent technopolitics.

But surveillance ads have completely unavoidable, absolutely ghastly technopolitics. Surveillance ads are bad for publishers, for advertisers, and for democracy. We should ban surveillance ads:

https://www.eff.org/deeplinks/2023/05/save-news-we-must-ban-surveillance-advertising

(Image: Jess, CC BY-SA 4.0, modified).


Hey look at this (permalink)



A shelf of leatherbound history books with a gilt-stamped series title, 'The World's Famous Events.'

Object permanence (permalink)

#25yrsago Patrick Nielsen Hayden interviews Mike Ford https://user.well.com/engaged.cgi?c=inkwell.vue&f=0&t=126

#20yrsago Singapore bans Far East Economic Review https://web.archive.org/web/20061010002951/https://www.feer.com/articles1/2006/0610/free/p006.html

#20yrsago Publishing isn’t bestseller-driven https://www.nielsenhayden.com/makinglight/conventional_un/

#20yrsago Why architecture and security don’t mix https://www.schneier.com/blog/archives/2006/10/architecture_an.html

#20yrsago Vista licence: Microsoft’s abusive relationship with you https://wendy.seltzer.org/blog/archives/2006/10/19/forbidding_vistas_windows_licensing_disserves_the_user.html

#20yrsago Boy Scouts of America Concerned About Copyright https://web.archive.org/web/20061110065012/http://sfgate.com/cgi-bin/article.cgi%3Ffile%3D/news/archive/2006/10/20/entertainment/e110452D84.DTL

#15yrsago Canadian Tories admit that Canadians don’t want DRM rules, push for them anyway https://web.archive.org/web/20111022210131/http://www.michaelgeist.ca/content/view/6071/125

#15yrsago Visualizing Herman Cain’s 9-9-9 plan to redistribute wealth from the poor to the rich https://web.archive.org/web/20111021103517/http://jaredbernsteinblog.com/9-9-9-in-one-really-long-graph/

#15yrsago Free Bieber: campaign to kill proposed law that would send you to prison for 5 years for singing copyrighted music on YouTube https://web.archive.org/web/20111020145336/http://freebieber.org/

#15yrsago Belarusian central bank auctions off its sugar bowls https://www.theguardian.com/world/2011/oct/19/belarus-central-bank-sells-office-furniture

#15yrsago Dataviz as defacement: OCCUPY GEORGE https://web.archive.org/web/20111022022046/http://www.occupygeorge.com/

#15yrsago HOWTO avoid a copyright shakedown legal threat: be famous, a politician, a cop, a soldier or a corpse https://torrentfreak.com/undercover-cops-and-politicians-escape-bittorrent-lawsuit-111013/

#10yrsago Popular design guides are responsible for plague of grey type https://web.archive.org/web/20170914051800/https://www.wired.com/2016/10/how-the-web-became-unreadable/

#10yrsago Digital Defenders: a free open-licensed booklet for kids about privacy and cryptography https://edri.org/files/privacy4kids_booklet_web.pdf

#10yrsago Public universities and even the US Navy have sold hundreds of patents to America’s most notorious troll https://www.eff.org/deeplinks/2016/10/inside-intellectual-ventures-portfolio-nearly-500-university-patents

#10yrsago Airportraits: composite photos of all the daily takeoffs from the world’s airports https://mikekelley.art/?category=airportraits

#10yrsago Rich people can afford to buy more sleep than poor people https://arstechnica.com/science/2016/10/the-rich-can-sleep-in-thanks-to-better-transit/

#10yrsago Harry Shearer sues studio over Spinal Tap, says he’s received $98 in royalties over 30 years https://web.archive.org/web/20161224224142/https://www.yahoo.com/movies/harry-shearer-files-125-million-spinal-tap-fraud-suit-copyright-termination-150031664.html

#10yrsago ACLU asks court to reveal 23 secret surveillance laws https://web.archive.org/web/20161019224447/https://theintercept.com/2016/10/19/aclu-wants-secret-surveillance-laws-made-public/

#10yrsago Montana judge unrepentant after sentencing man to 60 days for repeatedly raping his own 12 year old daughter https://edition.cnn.com/2016/10/19/us/montana-judge-incest-case-trnd/index.html

#10yrago Turkish court fines bystander/tourist who sued police for shooting out his eye https://www.hurriyetdailynews.com/kyrgyz-tourist-wounded-in-gezi-protests-ordered-to-pay-debt-to-turkish-state–104964

#10yrsago By stealing from innocents, Chicago PD amassed tens of millions in a secret black budget for surveillance gear https://web.archive.org/web/20160929143255/https://chicagoreader.com/chicago/police-department-civil-forfeiture-investigation/Content?oid=23728922

#10yrsago Turing’s law: UK to retroactively pardon thousands of men prosecuted for having sex with men https://www.bbc.co.uk/news/uk-37711518

#5yrsago The monopoly strategy behind the Google/Microsoft mobile patent wars https://pluralistic.net/2021/10/20/vizio-vs-the-world/#capital-as-power

#5yrsago Copyleft lawsuit against Vizio will allow anyone to defend the commons https://pluralistic.net/2021/10/20/vizio-vs-the-world/#dumbcast

#5yrsago The true, Terry Pratchett-esque origins of the trillion-dollar coin https://pluralistic.net/2021/10/19/moist-von-lipwig/#gimmick-v-gimmick

#1yrago The mad king's digital killswitch https://pluralistic.net/2025/10/20/post-american-internet/#huawei-with-american-characteristics


Upcoming appearances (permalink)

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A screenshot of me at my desk, doing a livecast.

Recent appearances (permalink)



A grid of my books with Will Stahle covers..

Latest books (permalink)



A cardboard book box with the Macmillan logo.

Upcoming books (permalink)

  • "The Post-American Internet," a geopolitical sequel of sorts to Enshittification, Farrar, Straus and Giroux, 2027
  • "Unauthorized Bread": a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, April 20, 2027

  • "Enshittification, Why Everything Suddenly Got Worse and What to Do About It" (the graphic novel), Firstsecond, 2027

  • "The Memex Method," Farrar, Straus, Giroux, 2027



Colophon (permalink)

Today's top sources:

Currently writing:

  • “Once Is Enemy Action,” a science fiction novel about the origins of modern technofascism. Today's words: 574 (7730 total).
  • "The Post-American Internet," a sequel to "Enshittification," about the better world the rest of us get to have now that Trump has torched America. Fourth draft completed. Submitted to editor.

  • A Little Brother short story about DIY insulin PLANNING


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Pluralistic: Amazon achieves enshittification inception (04 Sep 2026)


Today's links



Hieronymus Bosch's 'The Conjuror,' a painting depicting a medieval con artist playing a shell game for an audience of astonished peasant rubes. The image has been altered: the conman now has Jeff Bezos's grinning head, and the mouths of all the peasants have been replaced with inverted Amazon 'Smile' logos, so they are now frowning.

Amazon achieves enshittification inception (permalink)

Amazon's own balance sheet presents the most compelling evidence that we are stuck in the Enshittocene, the era in which everything is turning into a pile of shit, because the worst ideas of the worst people now make the most money.

Amazon is a many-tentacled monster, with several prominent lines of business wrapped around the world. There's its logistics and fulfillment business, which is so successful (at the expense of its workers' labor rights, bodies and bathroom breaks) that it is more than fully subsidized by Amazon's platform sellers, the independent merchants who depend on Amazon to sell and deliver their goods.

This means that it costs Amazon itself nothing to get the merchandise it sells to your door: more than 100% of the cost of operating the fulfillment side of Amazon is covered by the fees it extracts from its independent sellers (who compete with Amazon in many instances, and for whom delivery is a cost center, not a source of profit).

Then there's AWS, Amazon's cloud business. This is another extraordinary success story: every company needs servers, and that's especially true of an e-commerce company like Amazon. By building more servers than it needs, Amazon transformed its own data infrastructure from a cost center into another profit center. Amazon's customers – many of whom are also its competitors – pay Amazon so much to rent space on its servers that Amazon gets its own (prodigious) computing for free, and realizes a profit on top of that.

Taken on their own, these two facts constitute an extraordinary business story: one of the largest corporations in the history of the world has converted its two largest cost centers into profit centers, and those profits are substantially generated by extracting payments from the company's own competitors!

Amazon's logistics and cloud computing are extraordinary, but they are eclipsed by the company's most profitable line of business, which is payola.

"Payola" is a word that old people like me just barely have context for and for anyone under fifty the word is likely a mystery, so a brief explanation is in order.

"Payola" comes from a massive 1950s scandal over bribes that record labels paid to radio DJs and station managers to play their music. Radio stations were given the use of a scarce and precious resource – exclusive control over slices of the only electromagnetic spectrum in the universe – and were expected to program material that the American public would find enjoyable, edifying and educational. In this system, radio stations were expected to make shrewd guesses about the music the public would enjoy the most, and play that.

Because the selection process for the music that DJs played on the American public's spectrum was completely opaque, and because those selections could make fortunes for record labels, the system was ripe for corruption. Labels slipped literal envelopes full of cash and drugs ("payola") into the hands of DJs, station managers and owners, bribing them to turn songs into "hits" by cramming them into Americans' ears. The biggest predictor of a radio hit wasn't whether people liked the song so much that the stations rushed to play it, but rather, how much the labels were willing to spend in bribes to get their song played:

https://en.wikipedia.org/wiki/Payola

This was a bad system all around. The American public got worse music. Musicians' own royalties were eroded by the label accountants' practice of charging off bribes to "promotions" they deducted from artists' royalty statements. Radio stations sucked. Labels bid away each other's margins, depriving themselves of operating capital to find and record new music and starving them of free cash flow to pay to musicians, employees and shareholders. As with every instance of corruption, this was a system of concentrated gains and diffuse losses, which is why it continued for so long (decades!) and got so bad before anyone took action to end it.

Amazon's payola isn't about radio play – it's about search. When you search Amazon, the top results do not represent Amazon's best guess about what product will best match your query: rather, Amazon auctions off those top results to its platform sellers. Amazon's search results reflect who paid the biggest bribe, not who has the best product.

To pay for those bribes, platform sellers have to raise prices. Amazon helps them do this, by imposing a "most favored nation" clause on its sellers that requires them to sell on Amazon at a price that matches or beats the price charged everywhere else (Target, Walmart, a mom-n-pop, or the factory store):

https://pluralistic.net/2026/02/25/most-favored-nation/#price-fixing

Thus, Amazon imposes an economy-wide tax on nearly every product you buy. Amazon's junk fees average 51-60% of the purchase price of the things you buy there, and because Amazon has captured a supermajority of the richest 10% of Americans (who have almost all pre-paid for a year's shipping through Prime), every seller must sell on Amazon, or forego any hope of selling to most of the country's most prolific shoppers.

Any seller who signs up for Amazon is agreeing to turn over the majority of their sales income to Amazon, and any seller who raises prices to recoup those sums, must raise prices everywhere, at every retail outlet in the country.

AI has made Amazon much better at enforcing Most Favored Nation terms, because AI is actually pretty good at parsing competitors' websites and finding instances of discounting, which Amazon instantaneously punishes by relegating the sellers' product listings to page umpty-billion of Amazon's search results.

There are plenty of junk fees that go into Amazon's 51-60% rake. A large slice comes from fees Amazon charges for access to its (very profitable) logistics system. Failure to use Amazon's fulfillment system also relegates your listings to the dregs of Amazon search results, so sellers pay a massive premium to have their parcels delivered by Amazon, to the exclusion of cheaper alternatives that are just as fast and reliable. That's why Amazon fulfillment is so profitable!

While the Amazon tax is extracted through several types of junk fee, the most profitable junk fee of them all is Amazon's search payola. In fact, search payola is the most profitable business that Amazon operates, full stop.

Payola accounts for more of Amazon's profits than anything else the company does. It's more profitable than all the things Amazon sells directly. It's more profitable than AWS, Amazon's industry-leading cloud service.

Amazon has created a system where the most sales go to the companies that pay the highest bribes, and those companies pass the cost of those bribes onto their customers. The first item on a typical Amazon search results page is 29% more expensive than the best match for your search. The top row is 25% more expensive. The best result is usually on the second screen, somewhere around the 17th position:

https://pluralistic.net/2023/11/03/subprime-attention-rent-crisis/#euthanize-rentiers

Amazon actively helps its biggest bribers close the sale. Amazon has lots of "comparison shopping" systems built into the service, but one comparison tool is conspicuous by its absence: an "apples to apples" tool that lets you compare unit prices. Amazon's most prolific bribe-payers package their goods in weird quantities, selling everything from batteries to t-shirts to shampoo in larger or smaller quantities than their competitors. Sorting your search results by price doesn't actually tell you who's got the cheapest price per item, because the company with the cheapest AA batteries might be selling a smaller quantity of batteries at a higher price per battery.

Per-unit pricing is standard in retail. Indeed, if you go into a(n Amazon-owned) Whole Foods, you'll find per-unit pricing on the shelf tags, telling you how much the product costs per ounce or fluid ounce. Amazon clearly understands why shoppers would want to compare unit pricing, but offering a per-unit sort option to its search would make the bribery racket a lot less effective, because searchers could just sort by unit price and find the best bargain.

Let me remind you: payola is Amazon's single largest source of profits. When I was researching Enshittification, Amazon's take from payola was in the mid-$30 billions. A year later, when I did tour stops with Tim Wu (who was promoting his excellent book The Age of Extraction), I learned that this number had climbed to more than $50 billion. This year, it's on track to top $80 billion.

Amazon calls this bribery system an "advertising" product, but it's not "advertising" in the sense of the ads that Amazon's platform sellers might have once placed in the local newspaper. It's payola, more akin to the practice of packaged goods companies buying end-caps and whole shelves in the grocery store (a practice that is, in its own way, every bit as corrosive, though no grocery store has Amazon's economy-wide chokehold).

But there is a way in which this payola can be compared to advertising: it competes with advertising. Back in the old days, before a series of K-shaped recoveries created a vast chasm between America's haves and have-nots, before Amazon captured the majority of well-off American households with Prime, people shopped in lots of places, and in those days, companies advertised in publications, not on Amazon. Websites, newspapers, and newspaper websites made billions from those ads. Amazon's payola scheme (along with Google, Facebook and other tech monopolists) has captured almost all of that money.

As Tim Wu points out, the money Amazon makes from payola exceeds the advertising revenue received by all the newspapers in the world by 300%. Alongside that number and its implication for the news media, Jeff Bezos buying the Washington Post and turning its editorial page into a sewer of shitty Ayn Rand fanfic barely registers.

This is pure enshittification. Of all the ingenious, innovative ways that Amazon came up with to make money, the most successful is a scam that makes everything you buy more expensive even as it reduces the profits of the companies you're buying from. It's another example of corruption: a system of concentrated gains and diffuse losses – and once again, it's the most profitable thing Amazon does.

And then…Amazon made it worse.

You know how people like to say, "If you're not paying for the product, you're the product?" It's bullshit. The "advertisers" who bribe Amazon for top search placement are the customers here, they're "paying for the product," and they are getting reamed. I don't just mean they're getting screwed by being forced to shell out payola – I mean that Amazon is cheating them on that payola!

Remember: Amazon doesn't just sell search placement; they auction it. Every time you run an Amazon search, the company conducts a special kind of auction called a "sealed-bid second-price auction" (SBSPA):

https://en.wikipedia.org/wiki/Vickrey_auction

Under an SBSPA, bidders secretly tell the auctioneer the very highest price they're willing to pay. The auctioneer then charges the highest bidder a price equal to the second-highest bid, plus one cent.

This may seem unnecessarily complicated, but it's actually a clever solution to one of the major problems with traditional, "open call" auctions (where bidders call out the prices they're willing to pay until one bid emerges victorious). Say you're at an open call auction where the top bid is $10. You can call out $11, and then the other person will call out $12, and so on and so on. It's tedious and time-consuming. That's bad enough when you're at an estate auction that's unloading hundreds of items, but it's untenable for an eyeblink auction meant to determine search results that the user expects to get in an instant.

In physical auctions the top bidder often clobbers other bidders with a big increase – going from $10 to $50, say. This can end the auction quickly, but it means that the high bidder often overpays for their purchase.

In an SBSPA, every bidder enters their highest price, but none of the other bidders know what that price is. This encourages everyone to name their true highest price, but it protects the top bidder in the instance in which they are willing to pay a much higher price than anyone else.

Say you're that person who raises the bidding from $10 to $50 – you have no way of knowing whether the other bidders would have dropped out at $15 or at $45. If you were the only person who was willing to pay more than $15 for the item, you've just vastly overpaid (by $34.99). But in an SBSPA, you name your true price, but you only pay the price you would have paid if you'd gone through the tedious, expensive, time-consuming process of an open call auction.

Amazon's search auctions are SBSPAs. A merchant tells Amazon the maximum they're willing to pay to be at the top of the search results for a given query, but they pay a price equal to the second-highest bid, plus one cent. This lets auctions run so quickly that they can be used as the basis for ordering a search results page.

That's how it's supposed to work, anyway. The FTC and 22 states just filed a suit against Amazon because Amazon was cheating on its own SBSPA process:

https://www.ftc.gov/news-events/news/press-releases/2026/08/ftc-states-sue-amazon-over-secret-ad-surcharge-scheme

Over the past 7 years, Amazon has been secretly charging the winning bidder an amount equal to their own sealed bid, not the amount that the next-highest bidder was willing to pay (plus a penny):

https://gizmodo.com/ftc-sues-amazon-for-allegedly-duping-advertisers-2000805199

According to the suit, Amazon did this 80% of the time. That is tens of billions of dollars Amazon extracted from platform sellers, who passed those costs onto you, and onto every other retailer in the country (thanks to AI-enforced Most Favored Nation policies).

Amazon's defense is that this is all a big misunderstanding. Platform sellers just didn't understand how a SBSPA worked. Amazon has a special kind of SBSPA where they could unilaterally and secretly charge the winning bidder the maximum price they'd pledged, if, in Amazon's judgment, the closing price for the auction was below "the true market value of the ad placement":

https://arstechnica.com/tech-policy/2026/09/ftc-alleges-amazon-illegally-made-20-billion-by-rigging-billions-of-ad-auctions/

This is darkly hilarious. The whole point of an auction is to determine "true market value." That's why neoclassical economists worship auctions as the world's best form of "price discovery" and why economics Nobels are awarded for "auction design":

https://en.wikipedia.org/wiki/Auction_theory

The definition of "true market value" is "the closing price in an auction." Amazon claiming that it secretly jacked people because the auction generated a price that was "below the true market value" of an ad tells you that the whole business is a sham. The point of Amazon's payola scheme is only and ever a way to parasitically extract the maximum amount a platform seller is willing to part with, and by running a fake SBSPA, Amazon was able to trick its customers into revealing those maximum prices.

Cheating on a bribery scheme is a mood. This isn't just enshittification, it's enshittification inception. Amazon managed to enshittify their own enshittification!

This case was brought by Trump's FTC, which means that Amazon can get out of it by paying a chud podcaster to tweet at the president and he'll order them to drop it, just like he did with Ticketmaster:

https://pluralistic.net/2026/02/13/khanservatives/#kid-rock-eats-shit

But – just as with Ticketmaster – the feds aren't the only parties to the suit. With 22 AGs ("Aspiring Governors") on the suit, there's a chance this will go to trial. We might even learn the identity of the inventor of this enshittification-squared gambit, a veritable Louis Pasteur of enshittification. Assuming that person doesn't go to prison, the Sveriges riksbanks pris i ekonomisk vetenskap till Alfred Nobels minne can give that sloshing, ambulatory pile of hot liquid garbage a Nobel Prize in Economics.

(Image: Steve Jurvetson, CC BY 2.0, modified)


Hey look at this (permalink)



A shelf of leatherbound history books with a gilt-stamped series title, 'The World's Famous Events.'

Object permanence (permalink)

#25yrsago Electrolite relaunches https://web.archive.org/web/20010927195348/http://www.panix.com/~pnh/electrolite.html

#25yrsago How to play Mafia https://web.archive.org/web/20011113011546/http://www.stud.ntnu.no/studorg/mafia/

#20yrsago How Wikipedia entries get written http://www.aaronsw.com/weblog/whowriteswikipedia

#5yrsago Proctorio's awful reviews disappear down the memory hole https://pluralistic.net/2021/09/04/hypervigilance/#radical-transparency


Upcoming appearances (permalink)

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Recent appearances (permalink)



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Latest books (permalink)



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Upcoming books (permalink)

  • "The Post-American Internet," a geopolitical sequel of sorts to Enshittification, Farrar, Straus and Giroux, 2027
  • "Unauthorized Bread": a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, April 20, 2027

  • "Enshittification, Why Everything Suddenly Got Worse and What to Do About It" (the graphic novel), Firstsecond, 2027

  • "The Memex Method," Farrar, Straus, Giroux, 2027



Colophon (permalink)

Today's top sources:

Currently writing:

  • “Once Is Enemy Action,” a science fiction novel about the origins of modern technofascism. Today's words: 513 (11893 total).
  • "The Post-American Internet," a sequel to "Enshittification," about the better world the rest of us get to have now that Trump has torched America. Fourth draft completed. Submitted to editor.

  • A Little Brother short story about DIY insulin PLANNING


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