Is Platform Capitalism Socially Sustainable?

Andrea Fumagalli ()
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Andrea Fumagalli: Department of Economic and Management, University of Pavia, 20141 Milan, Italy

Sustainability, 2025, vol. 17, issue 15, 1-14

Abstract: This theoretical essay aims to analyze some of the socio-economic innovations introduced by Platform Capitalism Specifically, it focuses on two main aspects: first, the digital platform as a radical organizational innovation. Digital platforms represent a structural novelty in the market economy, signaling a new organization of production and labor. Second, the essay examines the role of platforms in directly generating value through the concept of “network value”. To this end, it explores the function of “business intelligence” as a strategic and competitive tool. Finally, the paper discusses the key issues associated with platform capitalism, which could threaten its social sustainability and contribute to economic and financial instability. These issues include the increasing commodification of everyday activities, the devaluation of paid labor in favor of free production driven by platform users (the so-called prosumers), and the emergence of proprietary and financial monopolies. Hence, digital platforms do not inherently ensure comprehensive social and environmental sustainability unless supported by targeted economic policy interventions. Conclusively, it is emphasized that defining robust social welfare frameworks—which account for emerging value creation processes—is imperative. Simultaneously, policymakers must incentivize the proliferation of cooperative platforms capable of fostering experimental circular economy models aligned with ecological sustainability.

Keywords: digital platforms; network value; prosumer; platform capitalism; business intelligence (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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