Latest news with #Varoufakis
Indian Express
6 days ago
- Business
- Indian Express
You paid for it, but you don't own it: How big tech is creating a new digital feudalism
Last year, the gaming community was swept over by confusion after video game giant Ubisoft quietly removed the popular racing game 'The Crew' from players' digital libraries. It was not delisted or shown as unsupported, but entirely erased, even for those who paid for it. This was because Ubisoft announced that it would shut down the game's servers, making it unplayable. For most gamers, what hit more than the loss was the realisation that they never really owned it. In simple words, they had paid for a licence, making them dependent on Ubisoft's willingness to keep its servers running and files available. The move by Ubisoft prompted debates across forums and tech columns, with many asking if it was legal or even ethical in the first place. For many, this was a reminder of how present-day digital economies function. Interestingly, this wasn't the first time something like this happened. In 2023, Sony kicked the hornet's nest after it nearly removed purchased Discovery content from its users' libraries. However, backlash caused Sony to reverse course. This problem is not just restricted to Ubisoft or Sony. It is to be noted that Amazon reserves the right to remove movies, shows, e-books, or any other digital purchases from an account. Similarly, Apple, too, can revoke access to iTunes media, and Steam can do the same with games. Most of these platforms work under a licensing model, meaning users 'pay for access' and not ownership. However, this is something most consumers delude themselves with. This illusion of owning digital goods is so widespread that in September 2024, California state pushed for more transparency through legislation requiring platforms to disclose that such purchases are licensed and revocable. While physical goods follow a 'first-sale doctrine' allowing buyers to resell, digital goods, on the contrary, are constrained by terms of service. In all of these, what we are missing is the slow yet steady step towards techno-feudalism, a world where corporations act as digital landlords, renting things that users once believed they owned. Economist and former Minister of Finance of Greece, Yanis Varoufakis, in his book Technofeudallism: What Killed Capitalism, argues that the world is not moving into a new phase of capitalism but rather regressing into a digital form of feudalism. This is what he calls 'technofeudalism', a system that is propelled by the humongous power of tech platforms and algorithms, which also happen to dominate the global markets, labour, and even the private lives of people. Much of this, according to Varoufakis, reminds you of the power of mediaeval lords over the peasantry. At the core of this ideology is the argument that Big Tech firms, like Amazon, Google, Facebook, and Apple, have moved beyond being mere market participants. Instead, they now act as owners of the digital spaces where most economic activities occur. According to the author, these companies do not simply compete in markets; in essence, they are the markets that are dictating terms for both consumers and producers. The author likens this to monopolistic dominance, which is breaking the foundational structures of capitalism, such as competition, private property rights, and open access. When you think of it, in traditional capitalism, ownership and control were distributed among entrepreneurs, shareholders, and business owners. On the contrary, technofeudalism, in a way, centralises economic power among a handful of digital platform owners. According to Varoufakis, these 'digital lords' use their platforms to control user behaviour, data flows, and even labour. He asserts that something as ostensibly neutral as algorithms is used to monitor, predict, and even manipulate human behaviour. And this is not just for convenience or efficiency, but to draw maximum value and consolidate platform dominance. The author also critiques surveillance and how tech tycoons are now accumulating wealth through platform ownership and not through traditional capital investment and risk-taking. As a resistance against technofeudalism, the author calls for political, regulatory, and grassroots responses, which also include antitrust action, data privacy laws, support for cooperatives and advocacy of decentralised digital models. To put it into perspective, when you buy a DVD of your favourite movie, you own that copy. You can watch it, lend it, sell it, or even break it. On the other hand, if you buy an eBook on Amazon, you are just granted access to read it under certain conditions. This may also prevent you from sharing it with a friend. It is worth noting that Amazon once offered a feature that allowed users to lend certain Kindle eBooks to others for approximately two weeks. However, in August 2022, the e-commerce giant largely discontinued this feature, much like it did in 2020 when it brought the curtains down on the Kindle Lending Library, a feature launched in 2011 that allowed Prime users to browse a selection of e-books and borrow one a month for free. There was no announcement regarding the change in 2022, with many reports claiming that Amazon's customer service representatives were even unaware of the discontinuation. Essentially, this absence of transferability impeaches the principles of the first sale doctrine, a legal standard that accords one the right to resell or gift physical items. Over time, courts have ruled that this principle does not apply to digital purchases, virtually trapping content in proprietary ecosystems. However, there were some attempts to counter this. In 2009, a Massachusetts-based company, ReDigi Inc., sought to create a marketplace for the resale of pre-owned digital goods, such as music, eBooks, games, apps, and software. The platform allowed users to stream, store, buy and sell legally acquired digital media. However, in the few years of its existence, ReDigi faced significant legal challenges, eventually leading to its shutdown. This, in a way, solidified the notion that digital ownership is largely a myth. Digital ownership has branched out into subscription models that essentially want consumers to rent, renew, and repeat their engagement. Today, there is a growing dominance of subscription models, which once began as a way to support journalists and indie creators. It is being increasingly applied to products that were once bought outright, ranging from creative software to car features. For example, in May 2013, Adobe discontinued its perpetual licensing model with the launch of Creative Suite 6 (CS6). This marked the software giant's transition to subscription-based Creative Cloud, requiring users to pay ongoing fees for access to Adobe's suite of applications. As of June 1, Creative Cloud All Apps is priced at an annual prepaid cost of $659. Cancelling the subscription may likely result in loss of access to the suite and related there are companies that still follow the one-time purchase model. Apple, for instance, offers its Pro Apps Bundle for Education, consisting of apps such as Final Cut Pro, Logic Pro, Motion, Compressor and MainStage, at $200. Companies like Blackmagic Design continue to offer one-time purchases of DaVenci Resolve Studio with free updates. Subscription models are not restricted to software; they have entered other domains such as printers and cars. Companies like HP and Brother now offer monthly plans that can deactivate cartridges if the user cancels. Similarly, automaker BMW in 2022 announced a subscription model charging $18 per month for heated seats despite existing hardware in certain markets, which was later discontinued owing to backlash. On the other hand, Mercedes-Benz offers an Acceleration Increase subscription for its EQ series electric vehicles. Reportedly at $1,200, this service unlocks enhanced performance and improved acceleration, all of which the vehicle is already capable of. These practices sparked debates about consumer rights and the ethics of charging extra for accessing existing hardware capabilities. Digital access comes with convenience; however, there are strings in the form of logins and subscriptions. Sometimes, even the right to share content is often paywalled, prompting one to opt for higher-tier payment plans. In case any of the platforms shut down, in all likelihood, one's purchases will vanish into thin air. By contrast, physical books and cards retain value and can be used for a lifetime. With the increasing proliferation of subscription models and vague ownership of digital goods, we seem to be staring at a system that minimises consumer rights and maximises recurring revenue for big players. The outcome is a loss of permanence, as a user cannot hand over their digital library to their children. They cannot resell or gift it, let alone guarantee future access to it. This essentially makes ownership provisional. Is there something you can do about it? Perhaps buying physical media like books, DVDs, vinyl records, and even boxed software. These continue to offer ownership. They may not be convenient, but they are yours to keep. Look for DRM (Digital Rights Management) free content. DRM is a type of software used by companies to control how users access their digital content, such as movies, eBooks, music, and games. Most importantly, educate others. This is important, as many still believe that a digital purchase means ownership. Help spread awareness of these deceptive practices. The move towards technofeudalism is not inevitable. From what is happening around the world, it is more like a policy choice, a business strategy, and a cultural shift. Now more than ever, there is a need to support open platforms and seek consumer rights. Bijin Jose, an Assistant Editor at Indian Express Online in New Delhi, is a technology journalist with a portfolio spanning various prestigious publications. Starting as a citizen journalist with The Times of India in 2013, he transitioned through roles at India Today Digital and The Economic Times, before finding his niche at The Indian Express. With a BA in English from Maharaja Sayajirao University, Vadodara, and an MA in English Literature, Bijin's expertise extends from crime reporting to cultural features. With a keen interest in closely covering developments in artificial intelligence, Bijin provides nuanced perspectives on its implications for society and beyond. ... Read More
Euronews
10-03-2025
- Business
- Euronews
What are the main parties in Greenland's upcoming elections?
Economist, politician and the former Greek finance minister welcomed the easing of the German debt brake but believes that defence spending will not generate growth where it is needed. ADVERTISEMENT At a time when Europe is trying to regain control of its defence in the face of Russia's war on its soil and the US' apparent withdrawal, some dissenting voices are speaking out against the continent's further armament. Visiting Brussels, Yanis Varoufakis refuses to mince his words yet again. "The rearmament of Europe is the next great folly of the European Union," declared the co-founder of the pan-European leftist DiEM25 movement in an interview with Euronews. "It's going to make us less safe. It will make life nastier, more brutish, shorter in Europe," he added. The left-wing economist believes expanding Europe's military would "dissolve the social fabric" without guaranteeing security. "It's a way of weakening Europe in the name of making it stronger," Varoufakis explained.. Opposed to an agreement between Moscow and Kyiv proposed by US President Donald Trump, Varoufakis instead calls on Europe to put its own peace plan on the table. "We should reject Trump's plan. But we need to have our own. The first step will be to immediately and without a second doubt reject Donald Trump's land grab, his attempt to grab the underground riches of a part of Europe," he stressed. "We need to counter-propose our own peace plan. Rearming Europe, buying more weaponry from British Aerospace, from Dallas, from Rheinmetall, this is not going to make any difference to Ukraine. Ukraine needs a peace plan from Europe now". In his view, this agreement should guarantee Ukraine's sovereignty and its connection to Europe while keeping it "outside the two blocs, the Russian bloc and the NATO bloc, and allows us, as Europeans to come to their assistance, to rebuild their economy and society." According to Varoufakis, if Europe wants to play a role on the international stage during this period of major geopolitical tensions, it needs first and foremost a "political union" to gain "legitimacy", not an army. 'Buying shells and putting them on a shelf is not productive' Faced with the United States' withdrawal, the 27 EU member states are taking their security back into their own hands, giving the green light to a plan to rearm Europe, including a budget of €800 billion. The European Commission has also proposed that member states derogate from the EU's orthodox budgetary rules to finance their defence spending. In Germany, Chancellor-in-waiting Friedrich Merz has opened the door to relaxing the debt brake to allow investment in the country's infrastructure and defence. This is a 180 turnaround for the otherwise prudent country, which favoured strict fiscal rules for Greece during the financial crisis. As the former Greek finance minister who opposed Europe's austerity policy, Varoufakis positively greeted this paradigm shift — albeit with some reservations. "Of course, I welcome the end of the debt brake," Varoufakis said, however noting that Merz "wants to indulge in military Keynesianism." ADVERTISEMENT "Instead of investing in life, he is investing mostly in death. And if you look at it from a realistic macroeconomic point of view, this is not going to generate growth where it is necessary," Varoufakis explained. "When you buy ammunition, when you buy shells and put them on a shelf, this is not a productive investment." Asked whether pacifism might be tantamount to giving Russian President Vladimir Putin carte blanche to pursue his imperialist ambitions and invade other countries, Varoufakis concluded, "Pacifism is never a good response to invasion, but opting for endless war is not rational either." Watch Euronews' interview with Yanis Varoufakis in the player above.
Euronews
10-03-2025
- Business
- Euronews
Rearming Europe is the EU's next folly, Yanis Varoufakis tells Euronews
Economist, politician and the former Greek finance minister welcomed the easing of the German debt brake but believes that defence spending will not generate growth where it is needed. ADVERTISEMENT At a time when Europe is trying to regain control of its defence in the face of Russia's war on its soil and the US' apparent withdrawal, some dissenting voices are speaking out against the continent's further armament. Visiting Brussels, Yanis Varoufakis refuses to mince his words yet again. "The rearmament of Europe is the next great folly of the European Union," declared the co-founder of the pan-European leftist DiEM25 movement in an interview with Euronews. The left-wing economist believes expanding Europe's military would "dissolve the social fabric" without guaranteeing security. "It's a way of weakening Europe in the name of making it stronger," he added. Opposed to an agreement between Moscow and Kyiv proposed by US President Donald Trump, Varoufakis instead calls on Europe to put its own peace plan on the table. "We should reject Trump's plan. But we must have our own. The first step will be to reject immediately and without any doubt Donald Trump's land grab, his attempt to seize the underground wealth of part of Europe," he stressed. "We must counter-propose our own peace plan. Rearming Europe and buying more weapons from British Aerospace, Dallas and Rheinmetall won't change anything for Ukraine," Varoufakis argued. "Ukraine needs a peace plan from Europe now." In his view, this agreement should guarantee Ukraine's sovereignty and its connection to Europe while keeping it "outside the two blocs, the Russian bloc and the NATO bloc." According to Varoufakis, if Europe wants to play a role on the international stage during this period of major geopolitical tensions, it needs first and foremost a "political union" to gain "legitimacy", not an army. 'Buying shells and putting them on a shelf is not productive' Faced with the United States' withdrawal, the 27 EU member states are taking their security back into their own hands, giving the green light to a plan to rearm Europe, including a budget of €800 billion. The European Commission has also proposed that member states derogate from the EU's orthodox budgetary rules to finance their defence spending. In Germany, Chancellor-in-waiting Friedrich Merz has opened the door to relaxing the debt brake to allow investment in the country's infrastructure and defence. This is a 180° turnaround for the otherwise prudent country, which favoured strict fiscal rules for Greece during the financial crisis. As the former Greek finance minister who opposed Europe's austerity policy, Varoufakis positively greeted this paradigm shift — albeit with some reservations. "Of course, I welcome the end of the debt brake," Varoufakis said, however noting that Merz "wants to indulge in military Keynesianism." "Instead of investing in life, he is investing in death. From a macroeconomic and realistic point of view, this is not going to generate growth where it is needed," Varoufakis explained. ADVERTISEMENT "When you buy ammunition, when you buy shells and put them on a shelf, that's not a productive investment." Asked whether pacifism might be tantamount to giving Russian President Vladimir Putin carte blanche to pursue his imperialist ambitions and invade other countries, Varoufakis concluded, "Pacifism is never a good response to invasion, but opting for endless war is not rational either."
Euronews
10-03-2025
- Business
- Euronews
Rearming Europe is the EU's next folly, says Yanis Varoufakis
Economist, politician and the former Greek finance minister welcomed the easing of the German debt brake but believes that defence spending will not generate growth where it is needed. ADVERTISEMENT At a time when Europe is trying to regain control of its defence in the face of Russia's war on its soil and the US' apparent withdrawal, some dissenting voices are speaking out against the continent's further armament. Visiting Brussels, Yanis Varoufakis refuses to mince his words yet again. "The rearmament of Europe is the next great folly of the European Union," declared the co-founder of the pan-European leftist DiEM25 movement in an interview with Euronews. The left-wing economist believes expanding Europe's military would "dissolve the social fabric" without guaranteeing security. "It's a way of weakening Europe in the name of making it stronger," he added. Opposed to an agreement between Moscow and Kyiv proposed by US President Donald Trump, Varoufakis instead calls on Europe to put its own peace plan on the table. "We should reject Trump's plan. But we must have our own. The first step will be to reject immediately and without any doubt Donald Trump's land grab, his attempt to seize the underground wealth of part of Europe," he stressed. "We must counter-propose our own peace plan. Rearming Europe and buying more weapons from British Aerospace, Dallas and Rheinmetall won't change anything for Ukraine," Varoufakis argued. "Ukraine needs a peace plan from Europe now." In his view, this agreement should guarantee Ukraine's sovereignty and its connection to Europe while keeping it "outside the two blocs, the Russian bloc and the NATO bloc." According to Varoufakis, if Europe wants to play a role on the international stage during this period of major geopolitical tensions, it needs first and foremost a "political union" to gain "legitimacy", not an army. 'Buying shells and putting them on a shelf is not productive' Faced with the United States' withdrawal, the 27 EU member states are taking their security back into their own hands, giving the green light to a plan to rearm Europe, including a budget of €800 billion. The European Commission has also proposed that member states derogate from the EU's orthodox budgetary rules to finance their defence spending. In Germany, Chancellor-in-waiting Friedrich Merz has opened the door to relaxing the debt brake to allow investment in the country's infrastructure and defence. This is a 180° turnaround for the otherwise prudent country, which favoured strict fiscal rules for Greece during the financial crisis. As the former Greek finance minister who opposed Europe's austerity policy, Varoufakis positively greeted this paradigm shift — albeit with some reservations. "Of course, I welcome the end of the debt brake," Varoufakis said, however noting that Merz "wants to indulge in military Keynesianism." "Instead of investing in life, he is investing in death. From a macroeconomic and realistic point of view, this is not going to generate growth where it is needed," Varoufakis explained. ADVERTISEMENT "When you buy ammunition, when you buy shells and put them on a shelf, that's not a productive investment." Asked whether pacifism might be tantamount to giving Russian President Vladimir Putin carte blanche to pursue his imperialist ambitions and invade other countries, Varoufakis concluded, "Pacifism is never a good response to invasion, but opting for endless war is not rational either."
