Regulating Platforms. Terry Flew

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1943 novel The Fountainhead, the architect-hero John Galt proclaims: ‘Just as man cannot exist without his body, so no rights can exist without the right to translate one’s rights into reality, to think, to work and keep the results, which means: the right to property’ (Rand quoted in Streeter, 2011, p. 140).

      The influence of Randian ideas on the development of internet industries and cultures is an important one. It is a marker of the degree to which the internet developed in the double context of a capitalist economy and a liberal ideology, strongly stressing the role of the individual entrepreneur as the wellspring of economic progress. From this perspective, various forms of public interest regulation were seen as inhibitors to innovation; and it was through innovation rather than through welfare or regulation that all would ultimately benefit from the trickle-down effect. The period from 1980 to the present has been described – although not without contention (Flew, 2014b) – as an era of neoliberalism, characterized by ‘new political, economic and social arrangements within society that emphasize market relations, re-tasking the role of the state, and individual responsibility’ (Springer et al., 2016, p. 2). Critics of internet policies during the 1990s such as Robert McChesney argued that the deregulatory policies of the period rested upon a particular mythology of the free market as ‘the most rational, fair, and democratic regulatory mechanism ever known to humanity … No debate is necessary to establish the market as the reigning regulatory mechanism, because the market naturally assumes that role unless the government intervenes and prevents the market from working its magic’ (McChesney, 1999, p. 136).

      In this book I develop the proposition that the social and economic expansion of digital technology in general and of digital platforms in particular can be understood as occurring at the intersection of three elements (see Figure 1.1):

      1 (1) ideas: ways of thinking about material objects and relationships that rise to prominence and gain general social acceptance but are challenged by other competing ideas;

      2 (2) interests: institutions and organizations that seek to advance their individual or collective social power in the economic, political, and cultural spheres;

      3 (3) institutions: organizational forms that both govern and regulate social, economic, and political relations and through which collective decision-making occurs.

      Many of these propositions are pro-capitalist, and yet curiously anti-corporate. This was a particular form of capitalism – Randian capitalism, perhaps – which stressed the power of the individual rather than of the corporation. No less a figure than President Ronald Reagan, in the 1985 presidential address that followed his re-election, observed: ‘We have lived through the age of big industry and the age of the giant corporation. But I believe that this is the age of the entrepreneur’ (Reagan, quoted in Streeter, 2011, p. 69). From Steve Jobs to Elon Musk, the rebel, the disruptor remains a central figure in Silicon Valley culture. The work of the Austrian

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