Pluralistic: Capital formation (14 Aug 2026)

Competition is crucial for ethical markets and high-quality tech, but the Digital Millennium Copyright Act (DMCA) Section 1201 has stifled this by criminalizing “adversarial interoperability,” thus enabling “enshittification” by Big Tech.
Early tech dynamism was driven by “adversarial interoperability,” where rivals could reverse-engineer products to offer superior alternatives; however, DMCA 1201 made this a felony, creating a “one-way ratchet” that protects incumbents from disruption.
The DMCA’s “use exemptions” are a “scam” because they permit individual users to modify their own devices (e.g., for repair or alternative app stores) but prohibit the creation and distribution of the “tools exemptions” necessary for mass adoption, rendering them practically useless.
True disenshittification requires “capital formation”—well-funded counter-industries that can legally develop and distribute tools, offer customer service, and provide guarantees—rather than relying on individual hackers or marginal, legally precarious solutions.