Currently, many companies, such as Apple, Tesla, and John Deere, design their products so that in the event of a breakdown, the user cannot repair them, even if they know how. For example, a farmer could buy a certain part for a John Deere tractor for $100 and would have no trouble replacing it. However, the software installed on the tractor will prevent such a procedure, and the farmer will either have to pay $5,000 for the manufacturer’s service or install pirated software. In essence, the farmer does not own the tractor but merely takes it on an indefinite lease.
How does libertarianism view such a policy?
themouse1_ from Bulbaland
The examples provided are particular cases of the platform economy. Similarly, an app developer is forced to adapt to the requirements of the company producing the operating system for which the app is developed. Likewise, a hired worker on a plantation in Brazil a century ago was obliged to buy groceries only from the shop run by the plantation owner, and in Soviet Russia, a collective farmer could only redeem his work-days, again, at a specific village store.
In short, these are not entirely market cases. Can such quasi-monopolistic situations arise in a completely free economy? Yes, but they are unstable. The emergence of a profit source significantly higher than the market average leads to others wanting to imitate such success, and soon competition levels the margin: platform owners, competing for the customer, begin to spend more on maintaining their loyalty.
Libertarianism proposes removing politics from the economy. Will this make John Deere more reasonable? Not immediately. Simply put, they will no longer have the ability to sue the farmer for installing pirated software. Therefore, wanting their authorized service to not go completely under, they will lower repair prices. Moreover, some Japanese or Belarusian tractors will start being imported duty-free, so the consumer will have a real choice and will be able to acquire the solution that maximizes their profit from operating the tractor.
Similarly, without the ability to force a worker to eat expensive slop in the factory canteen, without the ability to forbid installing apps from outside the app store on a smartphone, without the ability to punish a kiosk owner for moving under the protection of another security firm—the owners of all these platforms will find that racketeering practices work worse and worse, and they must get used to acting within the framework of fair competition. It’s fine, they’ll get used to it.





