For centuries, capitalism was defined by competition, free markets, and the ability of individuals to own resources and build wealth. However, we’re now seeing a transformation in the structure of our economy, with tech giants consolidating unprecedented control over digital spaces, user data, and even cultural influence. This shift—dubbed “technofeudalism”—marks a move away from traditional capitalist principles toward a model where power is increasingly centralized within a few tech corporations. Let’s dive into how this transition is reshaping our economy and society.

From Free Markets to Digital Fiefdoms

In classical capitalism, companies compete to offer the best products, and consumers have the power to choose among options. But in technofeudalism, a few digital platforms dominate their markets, operating more like feudal landlords than traditional businesses. Here’s how this shift manifests:

Platform Monopolies: In a capitalist system, businesses compete within an open market. However, companies like Amazon, Google, and Apple have established virtual monopolies within their sectors, making them gatekeepers of digital commerce, search, and even app distribution. Unlike traditional markets, these tech giants control the platforms where competition is supposed to occur, deciding who gets visibility and access.

Dependence Over Ownership: Capitalism emphasizes ownership, but technofeudalism promotes dependency. Users and small businesses rely on platforms like Facebook to reach audiences, Amazon to sell products, and Google for visibility. These platforms charge fees or take a cut from profits, meaning users “rent” space on these digital properties rather than owning a lasting presence. This shift to a "rent economy" gives tech companies ongoing control and profit, much like feudal lords once took a share of everything grown on their land.

Why Did This Shift Happen?

Technofeudalism didn’t emerge overnight—it evolved as digital technologies grew essential to daily life. Companies capitalized on network effects, where the value of a service increases as more people use it. Over time, a few firms grew so powerful that it became almost impossible for competitors to break through. The COVID-19 pandemic accelerated this transformation, as lockdowns drove more people online, increasing Big Tech’s reach and revenue.

Impacts on Society

The rise of technofeudalism has broad implications for society, shifting control away from the public and concentrating it within a few private companies.

Loss of Consumer Choice: With tech giants acting as gatekeepers, consumer choices are shaped and limited by their algorithms. What we see, buy, and consume online is often filtered through these companies’ priorities and interests rather than an open market.

Wealth Inequality: Traditional capitalism allowed individuals to generate wealth through ownership. In a technofeudal model, wealth concentrates at the top. Tech giants are the primary beneficiaries of the data economy, while individuals, small businesses, and local markets are often left to compete under restrictive conditions, seeing diminishing returns.

Can We Return to Capitalism?

As technofeudalism becomes the new reality, some question whether it’s possible—or even desirable—to return to traditional capitalist values. Regulatory attempts, such as Europe’s GDPR and U.S. antitrust investigations, aim to curb Big Tech’s power and restore balance. However, these efforts face resistance from companies with deep influence and significant resources.

Conclusion

The shift from capitalism to technofeudalism signals a profound change in economic power dynamics. With tech giants operating more like digital landlords, society faces critical questions about autonomy, equality, and economic fairness. Recognizing this shift is crucial to understanding how digital monopolies shape our economy, and it may help us rethink policies to ensure a more
equitable future.