this post was submitted on 24 Apr 2024
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Technology

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Does enshitification happen because companies are publicly-traded? (beehaw.org)
submitted 6 months ago by hedge@beehaw.org to c/technology@beehaw.org
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Isn't that a prerequisite for enshitification? Publicly-traded companies are required (by law, I think) to maximize profits for their shareholders, even if that means utterly ruining their original product (Reddit, Boeing, etc.), yes? What do you think?

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[–] lvxferre@mander.xyz 35 points 6 months ago

Enshittification requires two specific conditions:

  1. when a company can get more profit by decreasing the quality of the goods/services that it offers; and
  2. when the company is willing to do so.

The company being publicly traded can cause #2, as the investors won't be as emotionally attached to the goal of the company as the founders. However, it is not a prerequisite, with Reddit being an example (it started enshittifying way, way before the IPO).