The valorization of interactions. Gift exchange, power and value creation on digital platforms

Abstract

Technology companies are often worth billions, but they still must make their money through advertising. The research literature on the value creation of data-driven platform companies often refers to the expropriation of data or the exploitation of users. This article proposes a relational approach to the understanding of value creation on digital platforms such as social media channels or free internet services. To this end, it combines Marxian and anthropological value theory. Accordingly, the interactions of platform users are understood as asymmetrical practices of gift exchange. This exchange of digital gifts forms the condition of production for the value creation of internet platforms, and is reproduced continuously by their asymmetrical field of interaction. Here it is not the individual who is exploited, but rather the community of those who interact in a particular field. This condition is anchored in these platforms’ terms and conditions, which stipulate that users share their data not only with each other, but also with the company, thereby enabling a three-step process of data commodification by the platform. First, the data are appropriated as use values by the platforms in order to optimize their own services. Subsequently, a secondary commodification takes place, which, unlike other value creation processes, is decoupled from the use value of the data. Third, there is a process of cybernetization, in which the ability to influence users is sold to third parties as a commodity.