We're Stuck in an Infinite Loop of Terrible Tech
a day ago
- #E-commerce
- #Tech Industry
- #AI Regulation
- Amazon sues Perplexity over Comet AI, a browser-integrated chatbot that bypasses Amazon's sponsored listings and finds cheaper deals from small retailers.
- Comet AI threatens Amazon's business model by circumventing Amazon's curated search results and sponsored listings, reducing Amazon's revenue from placement fees.
- Perplexity, like Amazon, is driven by investor incentives and may eventually adopt similar exploitative practices as it grows, continuing the cycle of 'enshittification.'
- Corey Doctorow's term 'enshittification' describes how platforms deteriorate for users and businesses once they dominate the market, leading to profit maximization at the expense of both.
- Market competition alone won't solve the issue due to Amazon's legal resources and market dominance, requiring regulatory intervention to prevent monopolistic practices.
- Regulators need to: 1) Limit Amazon's control over basic product data, 2) Block Amazon from acquiring competitors, and 3) Prevent platforms from both hosting and selling on their markets.
- Without intervention, AI solutions like Comet AI may eventually become the next exploitative middlemen, perpetuating a cycle of deteriorating tech solutions.