GioCities

blogs by Gio

Atom feed ⚖ politics

⚖ people who know more than me talk about Epic acquiring Bandcamp

March 2, 2022: Bandcamp puts out a press release about their “joining” Epic Games. This follows in a line of eerily similar acquisitions of companies catering to indies, namely Sketchfab and ArtStation.

There are lots of interesting topics intersecting here:

  • Venture capital and the associated perverse incentives
  • Antitrust and general issues with corporate consolidations
  • The takeover of existing institutions, especially technical infrastructure
  • The false narrative of corporations as indie and non-corporate
  • Epic vs Apple and problems of platform monopoly
  • Bandcamp’s correct but rare approach to piracy, which is endangered

I’ll talk more about those some day, don’t worry. For now, though, have some tweets.

⚖ Winners and Losers

I can’t write about antitrust. There’s too much to talk about. So I have to break the idea down, way down, to something manageable. I’m going to chew on one phrase here, “the government shouldn’t pick winners and losers.” It’s a favourite of the pro-monopoly types and it almost sounds reasonable, so let’s think about it for like a minute.

First, when pro-monopoly types say “the government shouldn’t pick winners and losers”, what they’re picturing as the “win state” is market domination. They don’t see it as a bad thing, because they feel that success correlates with virtue, so if a corporation beats out its competitors that’s because it was right and good. We know what it’s like when corporations actualize on this; complete market domination, customers have no option but to go through you, it’s impossible to start competing against you. 100% domination, company towns, corporate rule. But that theoretical “win state” is the answer to the question of what corporations “want”.

“Corporations”, as entities, are little optimizing robots. Executives and boards and shareholders are the cogs and wires, but the thing they come together to form is something of an entirely different nature, something artificial. This is intentional; people want corporate entities instead of humans specifically because corporate entities and humans are different. Corporations last, corporations have a focused goal, corporations have that machinery to scale and pursue it effectively. That thing they form is a very primitive artificial intelligence that uses its cogs and wires to pursue a specific goal.

And the thing they aspire to, the thing they try to maximize, is market share. Revenue is great, but market share prints money. And, in theory, when nobody is cheating or exploiting or being anticompetitive, this actually works. Corporations compete against each other for customers, customers pick the best products, innovation disrupts markets, yadda yadda.

But of course that doesn’t happen with cheats at the helms of these companies. And — as with any model, sport, or competition — without enforced regulation the market rewards the cheats. And what it rewards them with is power to charge more, power to make exploitative products, and ultimately power to keep competition from disrupting them.

In an environment where corporate crime is tightly prosecuted and nobody is “light on crime” even when it comes to the wealthy and powerful, this doesn’t happen. Cut out the cancer and you heal the body.

But keeping companies from being exploitive would be “picking winners and losers”! And that’s obviously wrong, they whine.

Now, in addition to what the words mean and what the states look like, the language “winners and losers” is also absurd because it spins the conversation with an undue emotional connotation. “It’s not fair for you to regulate companies such that they might lose money, because they’ve earned it.” Poor little guy. They’re hurt, and we’re stealing from them. Except no, that’s obviously a lie. Corporations aren’t people, they don’t have emotions or feel pain, they’re organizational structures composed of individuals who are not unduly harmed by antitrust regulation.

The actual humans in this equation, the only party anywhere near this question who we should worry about harming, are the consumers. The people, who depend on access to food and medical supplies and technology. The people who are actually harmed by monopoly, requiring antitrust in the first place!

Antitrust isn’t punishment, it’s correction of situation that has gone wrong. It’s fixing a machine that is producing undesirable results. It’s a correction to the AI’s value function; there was an undesirable outcome that was accidently being rewarded. The regulatory response needs to be either “whoops, you found a new way to hurt people we haven’t made illegal yet, let’s patch that” or “whoops, you’re overtly committing crimes, and there is a consequence for that because that is what rule of law means.”

The scoundrel is the one who makes the argument that because he got away with hurting people at a profit once, to stop him now would be unfair to him. Doing right by people is bad for his business model, so it’s impossible to say who’s right or not. It’s a transparent excuse for politicians who don’t personally agree with the law because they like the company, or like the money they spend to pick the company as the winner by means of policy drift.

The question of winners and losers doesn’t matter because what “winning” is for corporations is bad, per se. Corporations are artificial creations who perform by setting goals and pushing themselves toward them. And that (competition) is enormously beneficial! But just because some state is the best thing for a nonhuman entity doesn’t mean that should happen. In fact, every way in which that state is different from one that prioritizes people is a compelling argument against it.

⚖ Alma Mater

I went to my old university today.1 I wanted to use the library.

It was a strange experience. There were things about my time there I missed, but I didn’t miss my time there. There was too much wrong. Ways I didn’t fit.

I looked around. It was passing period, and there was a throng of students coming and going both ways. The pavement was nice, new construction. People were laughing and talking and introducing each other.

Was I wrong? Should I be missing this? There is still so much good here. So I asked myself what it was I saw, exactly. And I looked out.

⚖ Your engine hasn't earned your rent

YoYo Games announced today that they’re switching GameMaker to a subscription model. You know, I was planning on doing a high-effort article about this some day, but what the heck, let’s do it now.

First, here are the actual details of the GameMaker change. Instead of buying development tools you can use to develop things, YoYo is making its latest version of GameMaker — GameMaker Studio 2 — free to use. You can download it for free, learn how it works, and invest as much time making your game in it as you want. You only have to pay if you want to ship a game. And if you decide you really want to ship your game, it’s a whopping $80/yr for as long as you want your game on the shelves.

Subscriptions🔗

This idea of a company turning a product into a subscription service is probably familiar to you. Famously, Photoshop and Adobe’s other creative products switched from one-time purchases of software to indefinite recurring subscription fees, after having locked in most of the creative industry.

Earlier this year, a very similar thing happened with Buildbox, another “no code” game maker program. Buildbox changed their terms and conditions to demand revenue from all Buildbox games, including games and in-app purchases. In the normal tier, 70% of your total revenue goes straight to Buildbox. Even if you’re in the highest tier, you can’t stop them siphoning your revenue.

⚖ 5G's standard patents wound it

I remember seeing a whole kerfuffle about 5G around this time last year. Not the mind-control vaccine, the actual wireless technology. People (senators, mostly) were worried about national security, because Huawei (the state-controlled Chinese tech company, who is a threat, actually) was getting its 5G patents through and making its claim on the next-gen tech IP landscape. Maybe Trump even needed to seize the technology and nationalize 5G? Everybody sure had a lot to say about it, but I didn’t see a single person address the core conflict.

Format Wars🔗

Before we get to 5G, let’s go way back to VHS for a minute.

The basic idea of the “format war” is this: one company invents a format (VHS, SD cards, etc) and make a push to make their format the standard way of doing things. Everybody gets a VHS player instead of BetaMax, so there’s a market for the former but not for the latter. Now everyone uses VHS. If you’re selling video, you sell VHS tapes, and if you’re buying video, you’re buying VHS. If you invented VHS, this is great for you, because you own the concept of VHS and get to charge everyone whatever you want at every step in the process. And, since everyone uses VHS now, you’ve achieved lock-in.

Now, this creates an obvious perverse incentive. Companies like Sony are famous for writing and patenting enormous quantities of formats that never needed to exist in the first place because owning the de factor standard means you can collect rent from the entire market. That’s a powerful lure.

And that’s just talking about de facto standards. This gets even worse when you mix in formal standards setting bodies, which get together and formally declare which formats should be considered “standard” for professional and international use. If you could get your IP written into those standards, it turns your temporary development time into a reliable cash stream.

Enter SEPs🔗

“5G” is one of these standards set by standard setting bodies, and it’s a standard packed with proprietary technology. The most important slice of those is called SEPs, or “Standard Essential Patents.” These are the Patents that are Essential to (implementing) the Standard. In other words, these technologies are core and inextricable to 5G itself. This figure represents only the SEPs:

⚖ Tweets about the attack on the Capitol

Twitter is an ephemeral medium. You scroll through tweets just fast enough for them to register in your head, and then they’re gone forever. If you want to find something again, you can go to somebody’s profile and scroll through, one tweet at a time, until you find what you wanted.

This is a lousy way of capturing history. That’s not great, because Twitter does such a good job of capturing important moments, as they happen. If you want to save that moment, though, what can you do? What do you do if you think a day’s tweets are important? Print them out?

Well, I did. Here is what I tweeted and retweeted, on a page. Tactile. To be read.