Digital Lords or Capitalist Titans? Critiquing the Techno-Feudalism Narrative

In recent years, the rise of platform monopolies such as Google, Amazon, Meta, and Microsoft has sparked a growing discourse among scholars and public intellectuals, many of whom describe these developments through the lens of a supposed return to feudal structures. This narrative, often labeled as techno-feudalism or digital feudalism, suggests that contemporary digital capitalism is no longer driven primarily by labor exploitation, but by rent extraction and control over digital infrastructures (Varoufakis, 2021).

Prominent left-leaning thinkers such as Yanis Varoufakis, Mariana Mazzucato, McKenzie Wark, Jodi Dean, David Arditi, and Robert Kuttner have employed the techno-feudalism framework to highlight the increasing asymmetries of power and wealth in the digital age.

The term has gained significant traction, not least because of its rhetorical force and capacity to evoke historical imaginaries of servitude, hierarchy, and immobility (Morozov, 2022). Yet its growing popularity has also introduced analytical imprecision, with many adopting the label as a buzzword rather than engaging critically with its implications. At first glance, the metaphor appears appealing: today鈥檚 tech giants resemble lords presiding over digital fiefdoms, extracting value from users and workers who have little choice but to submit to the rules of the platform. However, this article argues that such analogies are conceptually flawed and politically misleading.

Drawing on the tradition of critical political economy, this paper challenges the techno-feudalism thesis by contending that the digital economy remains deeply embedded within capitalist logics, particularly in its monopolistic and financialized forms. What we are witnessing is not a reversion to feudal relations, but an intensification of capitalist accumulation strategies under new technological conditions. Platform monopolies do not derive power from land ownership or inherited status, but from their capacity to commodify data, enforce algorithmic control, and monetize access to essential infrastructures鈥攅specially through cloud computing and digital platforms. These dynamics do not mark a rupture from capitalism but rather its latest mutation, in which market domination is achieved through the mechanisms of monopoly, not feudal hierarchy.

By debunking the techno-feudalism myth, this article seeks to redirect the critique toward the enduring structures of capitalist domination that continue to define the digital economy. Understanding Big Tech as capitalist titans, rather than digital lords, offers a more precise analytical lens for grasping the mechanisms of exploitation, accumulation, and control that shape the contemporary political economy of platforms.

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Race to the bottom: Competition between Indonesian food delivery platform companies for cheap gig workers

The race to pay drivers as little as possible is underway in Indonesia. In this competition, the participants are platform companies in online transportation services, such as Gojek, Grab, Shopee Food, Maxim, InDriver. Some researchers argue that competition between platform companies will create equilibrium prices, also called a , which is considered positive.

This positive assessment of the platform’s inter-corporation competition is rooted in the neoclassical economic notion of . In this theoretical framework, it is assumed that competition equalizes supply and demand to create a balance of goods prices, wages, and profits; the results of which will create mutual benefits. Therefore, the preconditions for such competition are emphasized as important from a policy perspective. These preconditions include strong legal systems to support the operation of the 鈥榝ree鈥 market and the minimization of state intervention, which is thought to distort market price signals.

However, the story of perfect competition is far removed from how competition actually plays out. Indeed, capitalism is not as harmonious as the neoclassical framework suggests. This has led to the recognition of imperfect competition within the neoclassical framework. , for example, sees that markets may not work perfectly because of information asymmetries. The Marxist economist has proposed an entirely different view of competition. For him, what takes place in capitalism is not perfect competition, but real competition. In a real competition framework, there is competition between companies to cut production costs so as to enable them to lower commodity prices below those of their competitors. With lower prices compared to their competitors, their commodities tend to be chosen by consumers. This means that competition is a fight to beat rival companies, which often leads to a process of centralization: the strong get stronger and the weak get competed out of the market.

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The partnership trap in the Indonesian gig economy

In the last three months, there have been three strikes by gig workers in Indonesia. Problems related to harsh working conditions, injustice, and the decline in the welfare of gig workers became the main issues in the three strikes. The biggest strike was carried out by (delivery service from the platform company) involving nearly 1,500 couriers or almost 80% of active couriers on GoKilat. A day later, couriers from went on strike spontaneously for three days by mass deactivating accounts on their platform application.

Prior to the two strikes above, on April 6, 2021, a strike was carried out by couriers for 1 day in Bandung, Indonesia, involving around 1,000 couriers. The Shopee Express courier strike was motivated by a cut in the payment they received. The new rules reduce courier revenue from 2,500 rupiah (US$0.17)/package to only 1,500 rupiah (US$0.10)/package and that is the only income earned by the couriers. In other words, they did not earn basic income equal to the minimum wage in the province where they work. Moreover, they did not have health insurance, decent working hours, overtime pay, leave /holiday rights, and severance pay. The working conditions were worse due to the fact that the vehicles (motorcycle) used are theirs and they had to pay fuel cost.

With such a wage system, to be able to earn the minimum wage in Bandung City in 2021 of 3,742,267 rupiah (US$263.16) per month for instance, couriers have to deliver 2,495 packages monthly鈥攏ot including fuel and maintenance costs they have to pay. It means that they would have to deliver about 104 packages per day to the customers. If, on average, a package is delivered in 10 minutes, they need 17 hours per day, far above the decent 8 hours work day. This oppressive work system for gig workers is possible and there is no prohibition from the Indonesian government, due to the courier’s status as an independent contractor or, instead of labor.

The precarious and uncertain working conditions stem from the misclassification of their employment status. Companies classifies them as 鈥減artners鈥, so that they could avoid the obligation to provide the minimum wage, health insurance, overtime pay, severance pay, 8 working hours per day, and holiday rights if they were labor, although the working relationships between the companies and their couriers represents the employer-employee relationships as there are shift work for the couriers, work control by the companies, requirements in recruitment such as contracts of employment, and the companies unilateral rules established by the companies.

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