Digital capitalism unveiled: Understanding its impact for society through cases of Facebook and Uber

Abstract

The convergence of digital capitalism and political economy offers a profound area for exploration, highlighting the complex interactions between technology and economy in today's global digital landscape. Central to this study are the digital technologies that reshape traditional economic paradigms, influencing consumption and employment significantly. Utilizing Dan Schiller’s theoretical framework, this paper examines the impacts of these technologies on economic structures and social behaviours, alongside the associated risks through the lens of political economy. A critical analysis is presented through the case studies of Facebook and Uber, emblematic of social media networks and the gig economy respectively. Facebook, with its business model based on the commodification of user data, exemplifies digital capitalism's vulnerabilities as showcased during the Cambridge Analytica scandal, where data privacy breaches had far-reaching implications on policy and regulatory frameworks. This incident emphasizes the urgent need for strict data protection laws that mandate clear user consent and ensure data mobility. Uber’s model highlights the unstable nature of gig work under digital capitalism. By classifying drivers as independent contractors, Uber not only minimizes costs but also shifts substantial risk onto the workers, illustrating the need for policies that redefine worker classifications and provide comprehensive rights and benefits to gig workers. These case studies not only reflect Schiller’s critique of digital economic models but also emphasize the transformative potential of digital technologies, stressing the need for robust regulatory frameworks that protect interests of all stakeholders in the digital capitalism ecosystem. This analysis contributes significantly to our understanding of digital capitalism, particularly in how it interfaces with governance and societal structures, offering critical insights into the formulation of policies that safeguard social and economic welfare in the digitized age.