Internet giants: capitalism red in tooth and claw

This morning’s Observer column.

Like the other titans of the online world – Google, Facebook, Yahoo and to a lesser extent, Microsoft – Amazon is driven by data and algorithms. But not entirely. What many of its customers may not realise is that the results generated by Amazon’s search engine are partly determined by promotional fees extracted from publishers. In his book The Everything Store: Jeff Bezos and the Age of Amazon, Brad Stone describes one campaign to exert pressure for better terms on the more vulnerable publishers. It was known internally as the gazelle project, after Bezos suggested “that Amazon should approach these small publishers the way a cheetah would pursue a sickly gazelle”. (With a nice Orwellian touch, company lawyers later changed the name to the “small publisher negotiation programme”.)

That’s a revealing metaphor: capitalism red in tooth and claw. And it’s a useful antidote to the soothing PR of the corporations that now dominate our networked world…

Read on

LATER: Ram Reddy emails to point out Jeff Bezos’s wife’s very critical review of Brad Stone’s book — published on the book’s Amazon.com site. Excerpt:

Everywhere I can fact check from personal knowledge, I find way too many inaccuracies, and unfortunately that casts doubt over every episode in the book. Like two other reviewers here, Jonathan Leblang and Rick Dalzell, I have firsthand knowledge of many of the events. I worked for Jeff at D. E. Shaw, I was there when he wrote the business plan, and I worked with him and many others represented in the converted garage, the basement warehouse closet, the barbecue-scented offices, the Christmas-rush distribution centers, and the door-desk filled conference rooms in the early years of Amazon’s history. Jeff and I have been married for 20 years.

While numerous factual inaccuracies are certainly troubling in a book being promoted to readers as a meticulously researched definitive history, they are not the biggest problem here. The book is also full of techniques which stretch the boundaries of non-fiction, and the result is a lopsided and misleading portrait of the people and culture at Amazon. An author writing about any large organization will encounter people who recall moments of tension out of tens of thousands of hours of meetings and characterize them in their own way, and including those is legitimate. But I would caution readers to take note of the weak rhetorical devices used to make it sound like these quotes reflect daily life at Amazon or the majority viewpoint about working there.

Interestingly, when she came to look for a publisher for her own novel, she took it to an old-fashioned bricks ‘n mortar publisher: Knopf.

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