Saturday, December 7, 2019

Once These Firms Go Public (whatever happened to Don't Be Evil?) Talking to the FT's Rana Foroohar

From the Los Angeles Review of Books, November 29:
How might Google’s present-day mode of profit making fulfill its own founders’ late-90s fears of insidious advertising-funded search engines? How might Amazon’s multi-layered market dominance most resemble that of 19th-century railroad robber barons? When I want to ask such questions, I pose them to Rana Foroohar. 
This present conversation focuses on Foroohar’s book Don’t Be Evil: How Big Tech Betrayed Its Founding Principles—and All of Us. 
Foroohar is global business columnist and associate editor for the Financial Times, and CNN’s global economic analyst. Her previous book, Makers and Takers: How Wall Street Destroyed Main Street, was shortlisted for the FT/McKinsey Business Book of the Year award. For her technology and policy writing, Foroohar was named best large-publication columnist of 2019 by the Society of American Business Editors and Writers. She is also the 2019 winner of the Arthur Ross Award, given by the American Academy of Diplomacy for foreign-affairs writing.
¤
ANDY FITCH: Today we all might recognize the ways in which making information and media “free” online perhaps most benefits not content creators or consumers, but tech platforms — allowing them to attract users, harvest user data, and generate micro-targeted ad-driven revenue. But even in Don’t Be Evil’s meticulous account, it sometimes gets hard to pinpoint precisely when Google begins to grasp just how profitable its pioneering mode of surveillance capitalism eventually will become. So to start, could you walk us through Google coming to realize the theoretical/technological implications, the commercial applications, and the legal/political ramifications that ultimately prompt your own book to explore how this firm “evolved from the scrappy, cheerful, and idealistic enterprise of its early years to the vast and more ethically questionable corporate entity it is today”?

RANA FOROOHAR: In a way, that question covers the whole scope of this book. We need that whole span of more than 20 years to ask: how does Silicon Valley go from being this kind of utopia (an idyllic space for kids in garages to come up with great new innovations), to today’s dystopia? I’d start that story in the mid-90s, and probably pinpoint, as the first big shift, when Google’s founders Larry Page and Sergey Brin wrote (as Stanford students) their famous first paper on search. And I just called this paper “famous,” but it actually shocks me that you don’t see more people discussing its implications.

This 1998 paper basically sketches out Google as we know it today. It gives a detailed preview of how Google’s large-scale search engine will operate. It outlines how you make that search engine, and how it functions. But if you read all the way to the very, very end of the paper, you reach an appendix. This appendix discusses advertising, and the problems with advertising as a business model to support a search engine. Page and Brin actually say quite openly: “We expect that advertising funded search engines will be inherently biased towards the advertisers and away from the needs of consumers. Since it is very difficult even for experts to evaluate search engines, search engine bias is particularly insidious.” They predict this whole possible misuse by companies or other entities. Then they even go on to say that, because of these dangers, it might be in the public interest to design some kind of open or academic or nonprofit-type search engine, so that we can avoid these problems.

So at that point, in the 90s, we still have this kind of idealism. Most people building the Internet back then, including the Google founders, were these utopian types who wanted to connect the world by putting all of its information online. But the broader possibility for negative ramifications, in some cases ramifications that might outweigh the positive — I just don’t think that entered their minds. And we should remember that these folks, who tend towards the socially liberal side, also have this libertarian streak. They certainly believe in unfettered capitalism. They likewise believe in the ability of companies (particularly high-minded digital companies) to fly 35 thousand feet above the problems of the nation-state.

You can see this right now in the public battle between Mark Zuckerberg and Elizabeth Warren. To me, that represents this much bigger battle between the apex of neoliberalism and globalization as we’ve known them, and some new kind of politics in which we get (guess what) concerns about the nation, concerns about everyday American citizens and American voters. And of course these companies crossing borders and doing whatever they like, and offshoring taxes to wherever they want, might someday soon have to face up to the fact that so many of their most profitable innovations come directly out of taxpayer-funded research and development of the Internet, of GPS, of touchscreen technology — but without having that resulting wealth enrich the larger ecosystem. Instead it just enriches a handful of companies.

On a parallel historical timeline, could we also start tracing the original ideals, and then the more crass contemporary practice, of Stanford Persuasive Technology Lab-inspired “captology”: with Facebook “likes,” for example, flattering us and simultaneously training us to become Pavlovian dogs, with multi-sensory smartphone notifications evoking our own portable slot machines, with our resulting attachments to intermittent variable rewards leaving us obsessed, stressed, anxious, sick?

Right, just today, on the subway, in every direction I turned, literally no one was looking up from their phones. Our entire interactions in public spaces have changed. That, I would say, really began coming about around 2007. First, in the early 2000s, this field of captology started getting further developed at Stanford. And that brought together all of these various persuasion strategies — some of them just old-fashioned casino gaming techniques, and others more cutting-edge behavioral-psychology scientific findings. We’d had of course those 20th-century experiments with dogs salivating from clicker sounds and that sort of thing. But when the smartphone really reached the market in 2007, then everybody was off to the races.

By now, that entire scientific and psychological and technological field of persuasion has been elegantly compressed into this little device literally in your hands most of the day. Suddenly, you’ve got a slot machine in your pocket. That all adds up to us finding ourselves so glued (in some cases addicted) to our phones....
....MUCH MORE