Social media companies want you to believe that their algorithms are so powerful that they are able to manipulate you arbitrarily to consume, to believe, and to act. It’s beneficial to them because it’s a useful narrative to sell to advertisers. Doctorow refers to this as the Mind Control Ray Theory.
If MCRT is true, then it’s hypothetically possible for a small startup to “find” or replicate a copy of these magical algorithms and operate them at a smaller scale. Doctorow claims that the evidence they use to back this up is flimsy at best and, in fact, is a coverup for how they actually work.
In reality, social media companies are symbiotic with the state. They are allowed to dodge regulation because they make mass surveillance cost-effective for the government. Meanwhile, these companies rely on state protection to maintain their near-monopoly status. Their effectiveness at manipulation is therefore a matter of scale and surveillance
The difference between the monopoly theory and the Mind Control Ray theory is the difference between the evangelical mega church pastor who was bugging his audience in order to fake divine inspiration and someone who is legitimately talking to God.
I can't say I've run across many people that split this concept into two like that. In my experience it's either people who believe that they have Free Will and social media has no effect on them (I have nothing to hide, they can have my data, etc) or people who grasp that social media is incredibly manipulative because they have access to a wide array of your data and have the algorithms to take advantage of it.
I say all this as someone who's been bitching about Facebook for more than a decade now, but even moreso now that they own Oculus and are itching to become the defacto owner of the incoming metaverse. I mean if you think they're manipulative now, wait till they've got access to your biometric responses because you're wearing Facebook branded Skinner boxes on your face.