— Anil DashBut the technical mechanism by which Facebook and Google provide that faster reading experience happens to incidentally displace most of the third-party advertising platforms — the ones that aren’t provided by Facebook and Google themselves. Facebook publishers who use these new distribution channels are incentivized to use Facebook’s advertising platform, where payment rates and profit margins can be unilaterally changed at any time. Just as Uber subsidizes fares during the phase when they’re displacing regulated taxis, Facebook subsidizes publishers’ ad rates during the phase when they’re displacing third-party advertising networks.
Replicated under Fair Use from Tech and the Fake Market tactic by Anil Dash.