Music

Viral Song Created with Suno's genAI Removed From Streaming Platforms, Re-Released With Human Vocals (yahoo.com) 27

An EDM song by the British group Haven ran into trouble in October after it shared clips of upcoming song "I Run" on TikTok.

The song "was an overnight viral sensation online," writes Digital Music News — racking up millions of plays "even before it hit streaming services." (Although the Washington Post notes that "Record labels and TikTok users began questioning whether 'I Run' used an AI deepfake, modeled off British R&B singer Jorja Smith, for the vocals.")

Digital Music News picks up the story: The artist says he used his own voice to record the vocals, and then ran it through layers of processing and filtering to turn it into the female-sounding voice heard in the track. However, that filtering also included the use of the controversial genAI platform Suno — and that's what complicates things... [The article says later that Suno "is currently in the middle of a blockbuster lawsuit with the Big Three major labels over allegations of widespread copyright infringement of sound recordings used during the AI model training process."]

Meanwhile, the song was rapidly amassing listenership. It soared to #11 on the U.S. Spotify chart and #25 on Spotify globally. Videos using the song continued going viral on TikTok and Instagram, including one in which rapper Offset had apparently played the song during a Boiler Room set, which later turned out to be falsified. And then, as quickly as it appeared, "I Run" was taken down from streaming services, including Spotify and Apple Music. That was due, in part, to numerous takedown notices from The Orchard, the label to which Jorja Smith is signed, as well as the RIAA and IFPI. The takedown notices alleged various issues with the track, including the "misrepresentation" of another artist, as well as copyright infringement.

As a result, the song has also been withheld from the Billboard charts, including the Hot 100, on which it had been predicted to debut this week before the controversy. Billboard points out that it "reserves the right to withhold or remove titles from appearing on the charts that are known to be involved in active legal disputes related to copyright infringement that may extend to the deletion of such content on digital service providers."

The song itself has now been re-released with an all-human vocal track. But going forward will the music industry ever work with AI platforms? The Washington Post reports: "I Run" has taken off as record labels remain unsure of the extent to which they should welcome generative AI programs such as Suno or Udio into the industry. After the two AI music companies began growing in popularity, the three major labels — Sony Music, Warner Music Group and Universal Music Group — filed lawsuits against Suno and Udio, claiming that the AI companies have used the labels' sound recordings to train their model.

Since then, UMG and Warnerhave reached agreementsto work with Udio, ending their litigation... It comes shortly after all three major labels licensed their catalogue to Klay, a music streaming start-up that allows users to adjust songs using artificial intelligence. Major licensing organizations such as ASCAP and BMI shared that they would register songs that were partially AI-generated — but not fully generated ones.

Haven appears to present an uncomfortable edge case. While some AI-generated songs that sound broadly like other artists have been allowed to remain on streaming platforms, the voice in "I Run" appears to have been deemed too duplicative for comfort.

Cloud

AWS Introduces DNS Failover Feature for Its Notoriously Unreliable US East Region (theregister.com) 25

Amazon Web Services has rolled out a DNS resilience feature that allows customers to make domain name system changes within 60 minutes of a service disruption in its US East region, a direct response to the long history of outages at the cloud giant's most troubled infrastructure.

AWS said customers in regulated industries like banking, fintech and SaaS had asked for additional capabilities to meet business continuity and compliance requirements, specifically the ability to provision standby resources or redirect traffic during unexpected regional disruptions. The 60-minute recovery time objective still leaves a substantial window for outages to cascade, and the timing of the announcement -- less than six weeks after an October 20th DynamoDB incident and a subsequent VM problem drew criticism -- underscores how persistent US East's reliability issues have been.
Businesses

Science-Centric Streaming Service Curiosity Stream is an AI-licensing Firm Now (arstechnica.com) 3

Curiosity Stream, the decade-old science documentary streaming service founded by Discovery Channel's John Hendricks, expects its AI licensing business to generate more revenue than its 23 million subscribers by 2027 -- possibly earlier. The company's Q3 2025 earnings revealed a 41% year-over-year revenue increase, driven largely by deals licensing its content to train large language models. Year-to-date AI licensing brought in $23.4 million through September, already exceeding half of what the subscription business generated for all of 2024.

The streaming service's library contains 2 million hours of content, but the "overwhelming majority" is earmarked for AI licensing rather than subscriber viewing, CEO Clint Stinchcomb said during the earnings call. Curiosity Stream is licensing 300,000 hours of its own programming and 1.7 million hours of third-party content to hyperscalers and AI developers. The company has completed 18 AI-related deals across video, audio, and code assets.
AI

Klarna Says AI Drive Has Helped Halve Staff Numbers and Boost Pay (theguardian.com) 24

Klarna has claimed that AI-related savings have allowed the buy now, pay later company to increase staff salaries by nearly 60%, but hinted it could slash more jobs after nearly halving its workforce over the past three years. From a report: Chief executive Sebastian Siemiatkowski said headcount had dropped from 5,527 to 2,907 since 2022, mostly as a result of natural attrition, with departing staff replaced by technology rather than by new staff members.

The figures add to the impact of an internal artificial intelligence programme, which had steadily reduced its use of outsourced workers including those in customer service, with technology now carrying out the work of 853 full-time staff, up from 700 earlier this year. It meant the company, which was founded in Sweden in 2005, had managed to increase revenues by 108% while keeping operating costs flat. Siemiatkowski told analysts on an earnings call on Tuesday that it was "pretty remarkable, and unheard of as a number, among businesses."

Businesses

Krafton Launches Voluntary Resignation Program Weeks After Declaring 'AI-First Company' Future (pcgamer.com) 24

An anonymous reader shares a report: In October, PUBG and Subnautica 2 publisher Krafton announced that it would be undergoing a "complete reorganization" to become an "AI-first" company, planning to invest over 130 billion won ($88 million) in agentic AI infrastructure and deployment beginning in 2026. This week, as it boasts record-breaking quarterly profits, the Korean publisher has followed that strategic shift by launching a voluntary resignation program for its domestic employees, according to Business Korea reporting.

The program, announced internally, offers substantial buyouts for domestic Krafton employees based on their length of employment at the publisher. Severance packages range from 6 months' salary for employees with one year or less of service to 36 months' salary for employees who've worked at Krafton for over 11 years. The voluntary resignation program follows a November 4 earnings call in which Krafton announced a record quarterly profit of $717 million. During the call, Krafton CFO Bae Dong-geun indicated that Krafton had also halted hiring for new positions, telling investors that "excluding organizations developing original intellectual property and AI-related personnel, we have frozen hiring company-wide."

Verizon

Verizon To Cut About 15,000 Jobs (msn.com) 40

Verizon is planning to cut roughly 15,000 jobs, looking to reduce costs as it contends with increased competition for wireless service and home internet, according to WSJ, which cites people familiar with the matter. From the report: The cuts, the largest ever for the carrier, are set to take place in the next week, the people said. The majority of the reduction is expected to be made through layoffs. Verizon also plans to transition about 200 stores into franchised operations, which will shift employees off its payroll.

Verizon, the largest U.S. telecommunications provider by subscriber base, faces a fierce battle for both wireless and home internet customers. It has lost crucial postpaid phone subscribers for three consecutive quarters. Last month, Verizon named its lead independent director Daniel Schulman as its new chief executive officer. Schulman, a former CEO of PayPal and Virgin Mobile USA, has said he would aggressively reduce the company's entire cost base and take steps to reverse the customer losses.

AI

Neurodiverse Professionals 25% More Satisfied With AI Tools and Agents (cnbc.com) 30

An anonymous reader shared this report from CNBC: Neurodiverse professionals may see unique benefits from artificial intelligence tools and agents, research suggests. With AI agent creation booming in 2025, people with conditions like ADHD, autism, dyslexia and more report a more level playing field in the workplace thanks to generative AI. A recent study from the UK's Department for Business and Trade found that neurodiverse workers were 25% more satisfied with AI assistants and were more likely to recommend the tool than neurotypical respondents. [The study involved 1,000 users of Microsoft 365 Copilot from October through December of 2024.]

"Standing up and walking around during a meeting means that I'm not taking notes, but now AI can come in and synthesize the entire meeting into a transcript and pick out the top-level themes," said Tara DeZao, senior director of product marketing at enterprise low-code platform provider Pega. DeZao, who was diagnosed with ADHD as an adult, has combination-type ADHD, which includes both inattentive symptoms (time management and executive function issues) and hyperactive symptoms (increased movement). "I've white-knuckled my way through the business world," DeZao said. "But these tools help so much...."

Generative AI happens to be particularly adept at skills like communication, time management and executive functioning, creating a built-in benefit for neurodiverse workers who've previously had to find ways to fit in among a work culture not built with them in mind. Because of the skills that neurodiverse individuals can bring to the workplace — hyperfocus, creativity, empathy and niche expertise, just to name a few — some research suggests that organizations prioritizing inclusivity in this space generate nearly one-fifth higher revenue. "Investing in ethical guardrails, like those that protect and aid neurodivergent workers, is not just the right thing to do," said Kristi Boyd, an AI specialist with the SAS data ethics practice. "It's a smart way to make good on your organization's AI investments."

Businesses

Amazon Takes Low-Cost Ecommerce Service Global (reuters.com) 7

An anonymous reader shares a report: Amazon on Friday expanded the reach of its low-cost ecommerce service to 14 additional markets and will call it Amazon Bazaar, as part of a push to compete with Chinese rivals including Shein and PDD Holding's Temu. The expansion of the service comes at a time when U.S. President Donald Trump's sweeping import tariffs are denting consumer sentiment, especially of lower-income groups, who are on a constant hunt for cheaper deals.
Transportation

Ferrari Aims at AI Generation With Crypto Auction For Le Mans Car (reuters.com) 10

Ferrari is tapping into crypto markets and tech-rich youngsters with a planned new digital token that its wealthiest fans will be able to use in an auction for a Ferrari 499P, the endurance car that won three straight Le Mans titles. From a report: The plan for now is limited in scope and is an effort by the Italian sports car maker to tap into a trend among luxury brands seeking access to the growing wealth of younger tech entrepreneurs, as AI and data centres drive investment and markets around the world.

It comes after Ferrari, which is also developing its first electric car, began accepting Bitcoin, ethereum and USDC for car purchases in the United States in 2023 and extended the service to Europe last year. Ferrari is working with Italian fintech Conio to launch the 'Token Ferrari 499P' for members of its Hyperclub -- which groups 100 of its most exclusive clients, with a passion for endurance races -- to trade amongst themselves and bid on the racing model.

Businesses

Amazon Accuses Perplexity of Computer Fraud, Demands It Stop AI Agent From Buying On Its Site (bloomberg.com) 44

Amazon has sent a cease-and-desist letter to Perplexity AI demanding that the AI search startup stop allowing its AI browser agent, Comet, to make purchases online for users. From a report: The e-commerce giant is accusing Perplexity of committing computer fraud by failing to disclose when its AI agent is shopping on a user's behalf, in violation of Amazon's terms of service, according to people familiar with the letter sent on Friday. The document also said Perplexity's tool degraded the Amazon shopping experience and introduced privacy vulnerabilities, said the people, who spoke on condition of anonymity to discuss internal matters.

In response, Perplexity said Amazon is bullying a smaller competitor with a rival AI agent shopping product. The clash between Amazon and Perplexity offers an early glimpse into a looming debate over how to handle the proliferation of so-called AI agents that field more complex tasks online for users, including shopping. Like OpenAI and Alphabet's Google, Perplexity has pushed to rethink the traditional web browser around AI, with the goal of having it streamline more actions for users, such as drafting emails and conducting research.

Businesses

'How Delivery Is Destroying American Restaurants' (msn.com) 176

Nearly three out of every four restaurant orders are no longer eaten in a restaurant, according to the National Restaurant Association. The share of customers using delivery more than doubled from 2019 to 2024, and 41% of respondents in a recent poll said delivery was an essential part of their lifestyle. The transformation has fundamentally altered restaurant economics. Delivery companies charge restaurants commissions between 5 and 30%, along with fees for payment processing, advertising, and search placement.

Shannon Orr runs an eight-restaurant group on the West Coast. One of her restaurants generated $1.7 million in delivery sales last year. Of that, $400,000 went to delivery companies. The restaurant, previously among her most profitable, made no money in 2024, she told the Atlantic.

About a third of full-service restaurants have modified their physical spaces to accommodate the delivery boom, installing dedicated entrances, bike parking, and banks of lockers.
Communications

SpaceX Disables 2,500 Starlink Terminals Allegedly Used By Asian Scam Centers (arstechnica.com) 50

SpaceX has deactivated over 2,500 Starlink terminals allegedly used by scam operations in Myanmar, where the service isn't licensed but was reportedly enabling large-scale cybercrime networks tied to human trafficking and fraud. Ars Technica reports: Lauren Dreyer, vice president of Starlink business operations, described the action in an X post last night after reports that Myanmar's military shut down a major scam operation: "SpaceX complies with local laws in all 150+ markets where Starlink is licensed to operate," Dreyer wrote. "SpaceX continually works to identify violations of our Acceptable Use Policy and applicable law... On the rare occasion we identify a violation, we take appropriate action, including working with law enforcement agencies around the world. In Myanmar, for example, SpaceX proactively identified and disabled over 2,500 Starlink Kits in the vicinity of suspected 'scam centers.'"

Starlink is not licensed to operate in Myanmar. While Dreyer didn't say how the terminals were disabled, it's known that Starlink can disable individual terminals based on their ID numbers or use geofencing to block areas from receiving signals. On Monday, Myanmar state media reported that "Myanmar's military has shut down a major online scam operation near the border with Thailand, detaining more than 2,000 people and seizing dozens of Starlink satellite Internet terminals," according to an Associated Press article. The army reportedly raided a cybercrime center known as KK Park as part of operations that began in early September. The operations reportedly targeted 260 unregistered buildings and resulted in seizure of 30 Starlink terminals and detention of 2,198 people.

"Maj. Gen. Zaw Min Tun, the spokesperson for the military government, charged in a statement Monday night that the top leaders of the Karen National Union, an armed ethnic organization opposed to army rule, were involved in the scam projects at KK Park," the AP wrote. The Karen National Union is "part of the larger armed resistance movement in Myanmar's civil war" and "deny any involvement in the scams."

Transportation

GM To End Production of Electric Chevy Brightdrop Vans (theverge.com) 93

General Motors is ending production of its Chevy BrightDrop electric delivery vans after sluggish demand and the expiration of key EV tax credits. "This is not a decision we made lightly because of the impact on our employees," GM CEO Mary Barra said during the company's third quarter earnings call Tuesday. "However the commercial electric van market has been developing much slower than expected, and changes to the regulatory framework and fleet incentives has made the business even more challenging." The Verge reports: Brightdrop first launched in 2021 as GM's effort to capture a large portion of the commercial EV market, starting with a pair of electric vans, as well as fleet management software and electric-powered carts for goods delivery. The automaker made deals with Walmart, FedEx, and other major retailers to add the van to their delivery fleets. But after trying to make a go of it as a standalone brand, GM reabsorbed BrightDrop in 2023, and then later assigned it to Chevy in order to tap into the brand's sales and service dealer network.

Now the van will stand as yet another casualty of the expiration of the $7,500 federal EV tax credit, which ended on September 30th. In addition to the consumer credit, there was also a $7,500 discount for commercial EVs under 18,000 lbs -- which Brightdrop was eligible for. The van was a range leader, but also was more expensive than its most prominent competitor. Brightdrop's vans started at $74,000, while Ford's E-Transit van with extended battery range sold for $51,600.

AI

'The AI Revolution's Next Casualty Could Be the Gig Economy' (yahoo.com) 56

"The gig economy is facing a reckoning," argues Business Insider's BI Today newsletter." Two stories this past week caught my eye. Uber unveiled a new way for its drivers to earn money. No, not by giving rides, but by helping train the ride-sharing company's AI models instead. On the same day, Waymo announced a partnership with DoorDash to test driverless grocery and meal deliveries.

Both moves point toward the same future: one where the very workers who built the gig economy may soon find themselves training the technology that replaces them.

Uber's new program allows drivers to earn cash by completing microtasks, such as taking photos and uploading audio clips, that aim to improve the company's AI systems. For drivers, it's a way to diversify income. For Uber, it's a way to accelerate its automated future. There's an irony here. By helping Uber strengthen its AI, drivers could be accelerating the very driverless world they fear... Uber already offers autonomous rides in Waymo vehicles in Atlanta and Austin, and plans to expand. Meanwhile, Waymo is rolling out its pilot partnership with DoorDash [for driverless grocery/meal deliveries] starting in Phoenix.

Crime

Chinese Criminals Made More Than $1 Billion From Those Annoying Texts (msn.com) 37

The U.S. is awash with scam text messages. Officials say it has become a billion-dollar, highly sophisticated business benefiting criminals in China. From a report: Your highway toll payment is now past due, one text warns. You have U.S. Postal Service fees to pay, another threatens. You owe the New York City Department of Finance for unpaid traffic violations. The texts are ploys to get unsuspecting victims to fork over their credit-card details. The gangs behind the scams take advantage of this information to buy iPhones, gift cards, clothing and cosmetics.

Criminal organizations operating out of China, which investigators blame for the toll and postage messages, have used them to make more than $1 billion over the last three years, according to the Department of Homeland Security. Behind the con, investigators say, is a black market connecting foreign criminal networks to server farms that blast scam texts to victims. The scammers use phishing websites to collect credit-card information. They then find gig workers in the U.S. who will max out the stolen cards for a small fee. Making the fraud possible: an ingenious trick allowing criminals to install stolen card numbers in Google and Apple Wallets in Asia, then share the cards with the people in the U.S. making purchases half a world away.

AI

Salesforce Says AI Customer Service Saves $100 Million Annually (bloomberg.com) 45

Salesforce says it's saving about $100 million a year by using AI tools in the software company's customer service operations. From a report: The company is working to sell AI features that can handle work such as customer service or early-stage sales. To illustrate the value of the Agentforce product to business clients, Salesforce has been vocal about its own use of the technology.

Chief Executive Officer Marc Benioff announced the statistic on Salesforce's savings during a speech Tuesday at the annual Dreamforce conference in San Francisco. The company said more than 12,000 customers are using Agentforce. For example, Reddit was able to cut customer support resolution time by 84%, Salesforce said.

AI

Hollywood Demands Copyright Guardrails from Sora 2 - While Users Complain That's Less Fun (yahoo.com) 56

Enthusiasm for Sora 2 "wasn't shared in Hollywood," reports the Los Angeles Times, "where the new AI tools have created a swift backlash" that "appears to be only just the beginning of a bruising legal fight that could shape the future of AI use in the entertainment business." [OpenAI] executives went on a charm offensive last year. They reached out to key players in the entertainment industry — including Walt Disney Co. — about potential areas for collaboration and trying to assuage concerns about its technology. This year, the San Francisco-based AI startup took a more assertive approach. Before unveiling Sora 2 to the general public, OpenAI executives had conversations with some studios and talent agencies, putting them on notice that they need to explicitly declare which pieces of intellectual property — including licensed characters — were being opted-out of having their likeness depicted on the AI platform, according to two sources familiar with the matter who were not authorized to comment. Actors would be included in Sora 2 unless they opted out, the people said. OpenAI disputes the claim and says that it was always the company's intent to give actors and other public figures control over how their likeness is used.

The response was immediate.... [Big talent agencies objected, along with performers' unions and major studios.] "Decades of enforceable copyright law establishes that content owners do not need to 'opt out' to prevent infringing uses of their protected IP," Warner Bros. Discovery said in a statement... The strong pushback from the creative community could be a strategy to force OpenAI into entering licensing agreements for the content they need, legal experts said... One challenge is figuring out a way that fairly compensates talent and rights holders. Several people who work within the entertainment industry ecosystem said they don't believe a flat fee works.

Meanwhile, "the complete copyright-free-for-all approach that OpenAI took to its new AI video generation model, Sora 2, lasted all of one week," writes Gizmodo. But that means the service has "now pissed off its users." As 404 Media pointed out, social channels like Twitter and Reddit are now flooded with Sora users who are angry they can't make 10-second clips featuring their favorite characters anymore. One user in the OpenAI subreddit said that being able to play with copyrighted material was "the only reason this app was so fun."
Futurism published more reactions, including ""It's official, Sora 2 is completely boring and useless with these copyright restrictions." Others accused OpenAI of abusing copyright to hype up its new app. "This is just classic OpenAI at this point," another user wrote. "They do this s*** all the time. Let people have fun for a day or two and then just start censoring like crazy." The app now has a measly 2.9-star rating on the App Store, indicative of growing disillusionment and frustration with censorship... [It's not dropped to 2.8.]

In an apparent effort to save face, Altman claimed this week that many copyright holders are actually begging to have their characters appear on Sora, instead of complaining about the trend. "In the case of Sora, we've heard from a lot of concerned rightsholders and also a lot of rightsholders who are like 'My concern is you won't put my character in enough,'" he told the a16z podcast earlier this week. "So I can completely see a world where subject to the decisions that a rightsholder has, they get more upset with us for not generating their character often enough than too much," he added. Whether most rightsholders would agree with that sentiment remains to be seen.

Business Insider offers another reaction. After watching Sora 2's main public feed, they write that Sora 2 "seems to be overrun with teenage boys."
Earth

How Plastic Goods Took Over the World, Creating a Throwaway Culture (bloomberg.com) 49

A new book, by Wall Street Journal reporter Saabira Chaudhuri, traces how disposability became a deliberate business strategy rather than an accidental consequence of modern commerce. The book, titled "Consumed: How Big Brands Got Us Hooked on Plastic," emerged from her reporting on how plastic bottles transformed bottled water from an occasional restaurant treat into an everyday staple.

Excerpts from a Bloomberg story: After World War II, the plastics industry made a conscious pivot. Lloyd Stouffer, an industry figure, openly said plastics should move from durable goods to disposables because companies make more money selling something a thousand times than once. The industry sold consumers on hygiene, convenience, modernity and easier household management. McDonald's dropped polystyrene clamshells in the late 1980s under activist pressure but simply swapped one single-use product for another.

Paper containers still cannot be recycled well once food soaks in. The old diaper-service model disappeared. Companies collected, washed and returned cloth diapers like the milkman, but plastics helped kill that business model. Chaudhuri argues companies built their businesses on disposability and will not change unless regulation forces everyone to move together. Executives admit that if they launch a reusable product but competitors do not, they lose market share and face shareholder backlash. Packaging standardization would improve recycling economics. Colored plastics like red shampoo bottles cannot be recycled in a closed loop and are down-cycled into gray products like pipes.
AI

McKinsey Wonders How To Sell AI Apps With No Measurable Benefits (theregister.com) 38

Software vendors keen to monetize AI should tread cautiously, since they risk inflating costs for their customers without delivering any promised benefits such as reducing employee head count. From a report: The latest report from McKinsey & Company mulls what software-as-a-service (SaaS) vendors need to do to navigate the minefield of hype that surrounds AI and successfully fold such capabilities into their offerings. According to the consultancy, there are three main challenges it identifies as holding back broader growth in AI software monetization in the report.

One of these is simply the inability to show any savings that can be expected. Many software firms trumpet potential use cases for AI, but only 30 percent have published quantifiable return on investment from real customer deployments. Meanwhile, many customers see AI hiking IT costs without being able to offset these by slashing labor costs. The billions poured into developing AI models mean they don't come cheap, and AI-enabling the entire customer service stack of a typical business could lead to a 60 to 80 percent price increase, McKinsey says, while quoting an HR executive at a Fortune 100 company griping: "All of these copilots are supposed to make work more efficient with fewer people, but my business leaders are also saying they can't reduce head count yet."

Another challenge is scaling up adoption after introduction, which the report blames on underinvestment in change management. It says that for every $1 spent on model development, firms should expect to have to spend $3 on change management, which means user training and performance monitoring. The third issue is a lack of predictable pricing, which means that customers find it hard to forecast how their AI costs will scale with usage because the pricing models are often complex and opaque.

Businesses

Cory Doctorow Explains Why Amazon is 'Way Past Its Prime' (theguardian.com) 116

"It's not just you. The internet is getting worse, fast," writes Cory Doctorow. Sunday he shared an excerpt from his upcoming book Enshittification: Why Everything Suddenly Got Worse and What to Do About It.

He succinctly explains "this moment we're living through, this Great Enshittening" using Amazon as an example. Platforms amass users, but then abuse them to make things better for their business customers. And then they abuse those business customers too, abusing everybody while claiming all the value for themselves. "And become a giant pile of shit."

So first Amazon subsidized prices and shipping, then locked in customers with Prime shipping subscriptions (while adding the chains of DRM to its ebooks and audiobooks)... These tactics — Prime, DRM and predatory pricing — make it very hard not to shop at Amazon. With users locked in, to proceed with the enshittification playbook, Amazon needed to get its business customers locked in, too... [M]erchants' dependence on those customers allows Amazon to extract higher discounts from those merchants, and that brings in more users, which makes the platform even more indispensable for merchants, allowing the company to require even deeper discounts...

[Amazon] uses its overview of merchants' sales, as well as its ability to observe the return addresses on direct shipments from merchants' contracting factories, to cream off its merchants' bestselling items and clone them, relegating the original seller to page umpty-million of its search results. Amazon also crushes its merchants under a mountain of junk fees pitched as optional but effectively mandatory. Take Prime: a merchant has to give up a huge share of each sale to be included in Prime, and merchants that don't use Prime are pushed so far down in the search results, they might as well cease to exist. Same with Fulfilment by Amazon, a "service" in which a merchant sends its items to an Amazon warehouse to be packed and delivered with Amazon's own inventory. This is far more expensive than comparable (or superior) shipping services from rival logistics companies, and a merchant that ships through one of those rivals is, again, relegated even farther down the search rankings.

All told, Amazon makes so much money charging merchants to deliver the wares they sell through the platform that its own shipping is fully subsidised. In other words, Amazon gouges its merchants so much that it pays nothing to ship its own goods, which compete directly with those merchants' goods.... Add all the junk fees together and an Amazon seller is being screwed out of 45-51 cents on every dollar it earns there. Even if it wanted to absorb the "Amazon tax" on your behalf, it couldn't. Merchants just don't make 51% margins. So merchants must jack up prices, which they do. A lot... [W]hen merchants raise their prices on Amazon, they are required to raise their prices everywhere else, even on their own direct-sales stores. This arrangement is called most-favoured-nation status, and it's key to the U.S. Federal Trade Commission's antitrust lawsuit against Amazon...

If Amazon is taxing merchants 45-51 cents on every dollar they make, and if merchants are hiking their prices everywhere their goods are sold, then it follows you're paying the Amazon tax no matter where you shop — even the corner mom-and-pop hardware store. It gets worse. On average, the first result in an Amazon search is 29% more expensive than the best match for your search. Click any of the top four links on the top of your screen and you'll pay an average of 25% more than you would for your best match — which, on average, is located 17 places down in an Amazon search result.

Doctorow knows what we need to do:
  • Ban predatory pricing — "selling goods below cost to keep competitors out of the market (and then jacking them up again)."
  • Impose structural separation, "so it can either be a platform, or compete with the sellers that rely on it as a platform."
  • Curb junk fees, "which suck 45-51 cents on every dollar merchants take in."
  • End its most favoured nation deal, which forces merchants "to raise their prices everywhere else, too.
  • Unionise drivers and warehouse workers.
  • Treat rigged search results as the fraud they are.

These are policy solutions. (Because "You can't shop your way out of a monopoly," Doctorow warns.) And otherwise, as Doctorow says earlier, "Once a company is too big to fail, it becomes too big to jail, and then too big to care."

In the mean time, Doctorow also makes up a new word — "the enshitternet" — calling it "a source of pain, precarity and immiseration for the people we love.

"The indignities of harassment, scams, disinformation, surveillance, wage theft, extraction and rent-seeking have always been with us, but they were a minor sideshow on the old, good internet and they are the everything and all of the enshitternet."

Thanks to long-time Slashdot readers mspohr and fjo3 for sharing the article.


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