Own Nothing? Welcome to Technofeudalism

Digital life is monitored and exploited by Big Tech, with every interaction benefiting the companies that control algorithms and harvest our data. Yanis Varoufakis’ concept of technofeudalism highlights the illusion of freedom and the concentration of wealth. The essay encourages us to challenge this system and envision digital spaces that prioritize people over corporations.

From browsing blogs to trading Instagram reels, from sharing memes to stumbling upon an embarrassing Facebook comment, everyday online activity unfolds at the very center of technofeudalism. This theory suggests that modern capitalism is evolving into a new system resembling feudalism, in which power and wealth are concentrated not in competitive markets but in a few dominant digital platforms that control access to economic and social life. Under technofeudalism, tech giants function like feudal lords, while users, workers and businesses become dependents who must operate on platforms they do not own or control.

It is worth mentioning a rather unexciting fact: the creator of this term is none other than Greece’s former finance minister, Yanis Varoufakis. In his book “Technofeudalism: What Killed Capitalism”, the former minister shares his own knowledge, analyses, playful dialogues with Alexa and personal experiences. First and foremost, leftists believed that they would be the ones to bring capitalism down. At the very least, they hoped so. Yet the day came when capitalism collapsed under its own weight.

In this context, it is quite normal to see technofeudalism reflected in the processes shaping and developing our everyday lives. Suppose you went to a bookstore and bought a book. This is something physical in your hands, and you own it. Consequently, you can do whatever you want with this book. You can read it, tear it, throw it away, donate it, sell it for money or, if you wish, even eat it. In short, this factor of ownership gives you enormous freedom.

But in our technofeudal world, in this virtual reality, that concept is fractured. For instance, I have countless playlists on my Spotify account, filled with countless songs. I did not create these songs, but they are curated based on my intelligence, taste, perspective, preferences and most importantly, my effort. If tomorrow Spotify suddenly announced, “Thank you very much for using our service, but starting tomorrow, unless you pay an extra 20 euros, you will lose access to all your playlists,” what could I do? Of course, nothing. This is one of the impositions of technofeudalism.
Under technofeudalism, we possess virtually nothing that we can truly own. As time goes on, we transition into mere users of a massive system, receiving nothing in return. On the contrary, it is we who constantly give. We give money, time, creativity and so on.

The power of big tech

Take, for example, today’s platforms — YouTube, Instagram, Facebook, TikTok and the like. There are tens of millions of influencers. Yes, these people make money, but do you really believe the money they earn is anywhere near the money the platforms themselves generate? In fact, it is we who make these platforms exist. I log into TikTok, then invite someone else to join TikTok, then tell others about what I saw on TikTok — all of it works to TikTok’s benefit. But as a user, what do I expect from TikTok? And as a user, what do I actually get from TikTok? Nothing at all.
The problem lies right here. Currently, big technology companies control technology, our virtual world, our digital skills and even our habits. They are known as Big Tech. For example, Google is the king of search engines, and Amazon is the king of e-commerce. Meta is the king of social media. And small businesses cannot compete with them. Because in the end, everyone is there. Everyone feels compelled to use whatever attracts everyone else’s attention.

As users, we constantly work for their benefit, often without gaining anything in return. As you know, if you want to obtain a verified profile badge on Meta, you have to pay. Yet this was once an official function used only for identity security; now, however, it is sold to us like a product.

Especially when we speak of virtual and technological worlds: this is the reality in the age of technofeudalism. In the feudal era, the source of wealth was land; today, it is data. Whoever possesses more data and whoever manipulates algorithms more effectively ends up with more money. And as you know, the entire world is affected by what happens in America.

Today, as technology titans like Elon Musk and Mark Zuckerberg become wealthier, the space for the rest of us narrows. Each of them, in media and technology alike, seeks to manipulate us, to steer us; to drag information-hungry yet simultaneously information-weary masses in whatever direction they choose.

For instance, in this book on technofeudalism, Mr. Yanis recounts devoting considerable time to Amazon’s Alexa. At first, he attempted to teach it his own preferences; later, however, Alexa began to guide him, suggesting, “Read this book, watch that series.” This serves as a small anecdote that reveals how algorithms actually operate.

Similarly, the situation is no different on Amazon: if there are 20 products in the store, you see all of them, but once you log into Amazon, the algorithm decides what to show you based on your past searches and how much time you spent on each item. It might even say, “Yesterday you looked for these headphones; here is the cheapest version, currently discounted by another seller, with 500 reviews to back it up.” In this way, it directs your choices. Yet if you were to search a little more on your own, you might discover a product that is both more suitable for your needs and even cheaper.

The role of data in control capitalism

In this sense, we argue that technofeudalism is also a form of control capitalism. Your algorithms, your clicks, the number of seconds you spend on a page and what you do and do not do are all being monitored. As I mentioned, people treat data as a currency, and they have now established surveillance capitalism. What does this mean? Your data plays the biggest role in controlling you. But you cannot cancel your subscription to this — neither you, nor I, nor anyone else.

The most we can do is delete all our social media accounts, erase our virtual lives, meet our friends in person and send letters by pigeon. Impossible. Of course, we are rushing to adapt to the age we live in. How did this happen? This definitely occurs within a cycle. Meta did not get created yesterday, and Steve Jobs did not become a millionaire yesterday.

The point is that these people, these companies — especially these big technology companies — do not benefit any country’s economy or its central bank, but instead constantly channel money into the pockets of the founders of these giant tech corporations. For example, as you know, YouTube is available in Azerbaijan. But does YouTube pay taxes to Azerbaijan? Because I am here, your users are watching me, and I am earning money for your users. Does YouTube pay taxes for this? No. Does Facebook pay taxes? No. Who is subject to the highest taxation? For instance, if you are a blogger, you share advertisements on Instagram.

For example, in Turkey, this is enforced much more strictly. But in Azerbaijan, it is not so strict. Yet, no matter how much they earn from this advertisement, they know they must pay taxes through the company account they opened under their own name. Fortunately, it has long been unclear whether platforms like YouTube and Facebook would be subject to local taxation on revenue generated from user data and content production in Azerbaijan. However, regulations regarding Value Added Tax (VAT) registration and tax practices for digital services are being introduced in Azerbaijan between 2023 and 2026; these platforms may lose their tax-exempt status.

Additionally, Azerbaijan imposes an 18% VAT rate on digital services; starting on January 1, 2026, foreign digital service providers must register for VAT when providing services to individuals in Azerbaijan. So, does Instagram pay taxes to the Azerbaijani government for the money it earns? Does it benefit our economy?

Right here, they say we gave everything away under feudalism. Because what is feudalism? There is a landowner who makes the peasants work. He makes the worker work, and the worker earns perhaps 2% of the money that flows into the landowner’s pocket. In technofeudalism, the situation is the same. As we just said, TikTok, Instagram and all the other Meta platforms, I don’t know, Amazon, Alibaba and Temu — they all operate because of us, the users.

We look at them, they work on their algorithms, they develop them and try to reach more people. And they do reach more people. For example, I bought something from Temu — I can proudly say I had never purchased anything before — and I also bought something from two trending platforms, Alibaba and Amazon. I then tell a friend that I bought an excellent product, and that they should buy it too, and then repeat. But does Amazon pay me for this? Do they say, “Oh, brother, oh Kenny, thank you so much, you did our advertising”? No. But does Amazon make money from it? Yes, it does.

The impact of big technology on nature

What else should I be talking about? One of the most important issues is that big technology harms not only human life but also nature itself. For example, the length of internet cables is enough to circle the globe multiple times; they have serious impacts on both underwater and underground ecosystems. In the same way, tools like ChatGPT may look harmless. Still, the data centres that power them consume massive amounts of water and electricity, generate e-waste, and contribute heavily to carbon emissions. And as servers become obsolete, they generate enormous amounts of electronic waste that does not simply disappear.

On the human side, the picture is no different: from Amazon to Tesla, many companies extract enormous profits by exploiting workers’ rights — the backbone of their operations is the labour of people, not the CEOs. Elon Musk may be the CEO, but the real backbone of these companies is the labor carried on workers’ shoulders. Let us not idealize Musk as a god; he exists not on his own, but thanks to the workers.

So, what can we do? First of all, leaving the current system is not easy. If all our friends are on Instagram or Facebook, moving alone to a different platform does not seem realistic. Yet there are alternatives: instead of X, one can use Mastodon or Bluesky. In contrast to YouTube, more ethical options such as PeerTube exist. These steps may seem small, but at the very least, they show that other paths are possible.

The real issue is to stop seeing technology leaders as gods. Idolizing Musk or others like him brings us no benefit; these companies stand on the labor of workers. Instead of sanctifying this order, we should question it.

That is why my most important call is this: think critically. Do not immediately believe every piece of information you encounter; do not surrender to the manipulations of social media. Keep asking yourself the same simple question: “Why?” Even this one question will allow you to see the world more clearly. Technology may be a part of our lives, but it is up to us not to let it dictate who we are or how we think.