Regulatory Competition in the Digital Economy (eBook)

Artificial Intelligence, Data, and Platforms

Michael Denga, Lars Hornuf (Herausgeber)

eBook Download: PDF

2025
207 Seiten
Springer Nature Switzerland (Verlag)
978-3-031-81089-3 (ISBN)

Infos

The digital economy is reinvigorating regulatory competition, yet little is known about which rules and jurisdictions can effectively bind companies nor what competitive motivations underlie certain rules. In addition to purely economic motives, legislators are now also driving the pursuit of digital sovereignty and the enforcement of social values in digital spaces. It also remains unclear what regulatory weight the self-regulation of private companies has in multi-level governance systems. This book examines regulatory competition in the three main pillars of digital markets: artificial intelligence, data, and platforms. It brings together legal scholars, economists and information systems experts, providing relevant examples and structured analysis of the aims and outcomes of regulatory competition in the digital economy.

“A timely exploration of the balancing acts regulators must perform to manage private power in a globalized digital economy. Essential for understanding the intersection of law, economics, and technology in the contemporary digital ecosystem.”

Jens Frankenreiter, Associate Professor of Law, Washington University

“The book by Denga and Hornuf provides a comprehensive and timely exploration of the intricate regulatory challenges posed by big data, artificial intelligence, and platforms in the Digital Single Market. If offers critical insights for policymakers, scholars, and businesses navigating this evolving landscape.”

Philipp Hacker, Professor for Law and Ethics of the Digital Society, European University Viadrin

“Artificial Intelligence is fundamentally disrupting how we enable economic growth and how we regulate fair competition. Luckily, Denga and Hornuf provide a detailed and comprehensive overview of the thorniest and most complex regulatory issues while at the same time offering thoughtful and feasible solutions.  "Regulatory Competition in the Digital Economy" is a treasure trove for anyone interested in market regulation, fair competition, consumer protection, and geopolitical questions.”

Sandra Wachter, Professor of Technology and Regulation, Oxford Internet Institute

Inhalt

Foreword 6
Preface 8
Contents 9
Data, Artificial Intelligence, and Platforms as a Triple Challenge for Economic Regulation 10
1 Salient Features of the Digital Single Market 10
1.1 Data 10
1.2 Artificial Intelligence 12
1.2.1 Complex Algorithms 12
1.2.2 Artificial Intelligence in the Digital Marketplace 13
1.2.2.1 Conceptual Blurring 13
1.2.2.2 Legal Definition of AI 14
1.3 Platforms 15
1.3.1 Basic Concepts 15
1.3.2 Crypto Ecosystems 17
1.4 Similarities Between the Phenomena 18
2 Disruption of the Economy and Society 19
2.1 Economic Significance of Digital Technologies 19
2.2 Political Significance of Digital Technologies 20
3 Technological Weakness and Regulatory Strength 21
3.1 Qualifying US and Chinese Technological Superiority 21
3.2 Pressure on IT Companies, Until Which Point? 22
3.3 Private Companies as Competitors of States 23
3.4 The Teleological Trinity of the Digital Single Market 24
4 Essential Need for Research 27
4.1 Is Innovation Stifled by Overregulation? 27
4.1.1 Multi-causality of Innovation 27
4.1.2 Promoting Innovation Through Legal Certainty 27
4.1.3 Regulatory Sandboxes and Thresholds 28
4.1.4 Key Example: AI Liability 28
4.2 Are European Values Effective? 30
4.2.1 Need for Concretization of European Values 30
4.2.2 Preservation of Private Autonomy 31
4.2.3 Marketplace Principle 32
4.2.4 Key Example 1: Brussels Effect in Data Protection Law 33
4.2.5 Key Example 2: Content Moderation 34
5 Conclusion 35
References 36
Regulatory Competition in the Digital Economy: The Theory, the Framework and a Few Applications 46
1 Introduction 46
2 Theoretical Foundations of Regulatory Competition 47
2.1 Regulatory Competition 47
2.2 Decentralisation and Centralisation 48
2.2.1 Advantages of Decentralisation 48
2.2.2 Advantages of Centralisation 49
2.2.3 The Perfect Mix? 50
2.3 Private Rule-Makers: Private Ordering 50
2.4 Implications for the Digital Economy 51
3 EU Framework Conditions for Regulatory Competition 52
3.1 Starting Point 52
3.2 Regulatory Competition: Internal Market 52
3.2.1 Basic Principles 52
3.2.2 Contract and Company Law 53
3.3 Regulatory Competition: Global Sphere 54
3.3.1 `Effects Doctrine´ (Impact Theory) 54
3.3.2 `Brussels-Effect´ 55
3.3.3 Relationship between `Effects Doctrine´ and `Brussels Effect´ 56
4 Applications in the Digital Economy 56
4.1 Subject of Regulation of the GDPR, DSA and the AI Act 57
4.2 Effects on Regulatory Competition 57
4.2.1 Internal Market 57
4.2.2 Private Ordering under the DSA and the AI Act 58
4.2.3 Global Sphere 59
5 Conclusion 61
References 61
Platform Competition in the Age of Networked Platforms 63
1 Introduction 64
2 Research Background 66
2.1 Digital Platforms and Ecosystems 66
2.2 Networked Platforms and Ecosystems 66
2.3 Platform Competition 67
3 Characteristics of Networked Platforms 68
3.1 Types of Networked Platforms 69
3.2 Types of Networked Platforms in Comparison 71
4 Implications for Platform Competition and Regulation 76
4.1 Existing Platform Competition and Regulation 76
4.2 Challenges for Regulation in Networked Platforms 78
4.3 Approaches for Platform Competition and Regulation 80
5 Conclusion 84
References 86
Regulatory Competition: A Perspective from Data Protection Law 89
1 Introduction 89
2 Theoretical Underpinning 90
2.1 Conditions for Regulatory Competition 91
2.1.1 Freedom to Choose the Applicable Rules 91
2.1.2 Responsiveness of Rule-Makers 93
2.2 Subject Matter: Legal Rules Including Enforcement 93
2.3 Economic Rationalities Versus Legal and Political Values 94
2.4 Regulatory Competition in Different Contexts 95
3 Regulatory Competition Between the EU and Third Countries 96
3.1 Broad Territorial Scope of Application 96
3.2 Setting Global Standards Beyond Legal Obligations 98
3.3 A Race to the GDPR? 99
3.4 Conclusions for Regulatory Competition 101
4 Regulatory Competition Between Member States 101
4.1 Level of Public Enforcement 102
4.2 Conclusions for Regulatory Competition 103
5 Regulatory Competition in B2C Relations? 103
6 Summary 105
References 106
European Data Regulation: Between Data Protection and Free Flow of Data in a Global Digital Economy 109
1 Introduction 110
2 European Data Protection Regulation and Its Impact on Competition and Innovation 111
2.1 The General Data Protection Regulation 111
2.2 The Global Impact of the GDPR 112
2.3 The Economic Impact of the GDPR 114
2.4 Summary 116
3 Regulatory Interventions to Promote the Free Flow of Data 117
3.1 Regulatory Interventions to Address Data Fragmentation 117
3.1.1 Barriers to Data Sharing and Efficient Markets for Nonpersonal Data 117
3.1.2 Common European Data Spaces and Interoperability Initiatives 119
3.1.3 Data Intermediaries and the Data Governance Act 119
3.2 Regulatory Interventions to Address Data Concentration 121
4 Regulatory Competition and the European Approach to Data Regulation 122
References 124
The Regulation of GPAI Model Providers Under the EU AI Act 126
1 Introduction 126
1.1 Challenges for Regulating Technology 126
1.2 The International Relevance of the EU AI Act 127
1.3 Overview EU AI Act 128
2 Obligations of GPAI Models Under the AI Act 129
2.1 Historical Overview 129
2.2 Statutory Obligations of GPAI Models 130
2.3 Additional Obligations for GPAI Models with Systemic Risk Under Art. 55 AI Act 131
3 Codes of Practice Under the AI Act 131
3.1 Content 131
3.2 Drafting and Negotiation Process 131
3.3 Legal Effects of Codes of Practice 133
4 General Concepts of Regulation and Applicability to the Codes of Practice Under the AI Act 134
4.1 Overview 134
4.2 The Range of Regulatory Approaches: From ``No Regulation´´ Over ``Self-Regulation´´ to ``Traditional Regulation´´ 135
4.3 ``Meta-Regulation´´ 136
4.3.1 Definition and Characteristics 136
4.3.2 Advantages and Effectiveness of Meta-Regulation 136
4.3.3 Requirements and Factors for Successful Meta-Regulation 137
5 Assessment of the Codes of Practice Under the EU AI Act 138
5.1 Potential Advantages of Codes of Practice 138
5.1.1 Flexible Adaptions Instead of Static Regulation 138
5.1.2 Technical Expertise and Resources by Relevant Stakeholders 138
5.2 Risks for the Successful Drafting of Effective Codes of Practices 139
5.2.1 Heterogenous Group of GPAI Model Providers 139
5.2.2 Other Stakeholders with Conflicting Interests 139
5.2.3 Codes of Practice with Excessive Obligations 140
5.3 External Pressure as a Success Factor for Codes of Practice 140
5.3.1 Customer Expectations 140
5.3.2 Downsides of Delayed or Non-adequate Codes of Practice 142
5.3.3 Enforcement Through AI Office 142
6 Conclusive Assessment 143
References 143
Regulatory Competition for AI Between EU and Member States 145
1 Regulatory Law (Direct Regulation) 145
2 Liability Law (Indirect Regulation) 146
2.1 Strict Liability 146
2.2 Product Liability 147
2.3 Fault-Based Liability 148
3 Regulatory Law and Duties of Care 149
3.1 Regulatory Law as Protective Law Sensu § 823(2) BGB 149
3.2 Regulatory Law and Duties of Care in Relation to § 823(1) BGB 150
3.2.1 Peculiarities in the Actual Case 150
3.2.2 Incentive Function (Liability as Indirect Regulation) 150
3.2.3 Practical Closeness to Strict Liability 151
3.3 Conformity with Industrial Standards and Duties of Care in Relation to § 823(1) BGB 151
3.3.1 Conformity with Standards Only Generates a Presumption of Conformity with Legal Requirements 151
3.3.2 AI Act as a Fully Harmonizing Instrument 152
4 Conclusion 152
References 152
Regulatory Competition for Platform Companies 154
1 Introduction 154
2 Platforms as Regulators 155
2.1 Behaviour Control Through Terms of Service and Technical Design 155
2.2 Rule-Making as a Component of Platform Ecosystem Governance (Gawer, 2021) 157
2.2.1 Promoting Valuable User Interactions 157
2.2.2 Preventing Abuse and Misconduct 158
3 Platform Rules Versus Platform Rules 159
4 Platform Rules Versus State Law 159
4.1 The Debate Around Facebook´s Community Standards 159
4.2 Platform Rules as Market Standard 162
4.3 Inadequacies in the Legal Control Mechanisms 162
4.3.1 Unclear Market Standard for Innovative Services 163
4.3.2 Multilateralism of Relationships 164
5 National Versus Supranational Legislators 165
5.1 Hate Speech and Illegal Content on Social Networks 166
5.1.1 Member State Legislation 167
5.1.2 EU: Digital Services Act (DSA) 167
5.1.3 Relationship Between DSA and Member State Legislation 168
5.2 Platform Power and Digital Ecosystems 168
5.2.1 Member State Legislation 169
5.2.2 EU: Digital Markets Act (DMA) 170
5.2.3 Relationship Between DMA and Member State Legislation 170
5.2.3.1 Addendum to Competition Law? 171
5.2.3.2 Section 19a GWB as a National Competition Law Provision 172
5.3 Assessment: The Phenomenon of Regulatory Competition Between Legislators 172
6 Summary 174
References 174
Regulatory Competition and Platform Companies: The Economic Perspective 180
1 Introduction 180
2 Regulatory Competition: Competition Among Competition Rules and Regulators 183
3 Economic Effects on Companies 186
3.1 External Regulatory Competition 186
3.2 Internal Regulatory Competition 187
4 Economic Effects on Social Welfare 189
4.1 External Regulatory Competition 189
4.2 Internal Regulatory Competition 191
5 Summary and Conclusion 192
References 193
What Is Special About Regulatory Competition in the Digital Realm? 195
1 Introduction 195
2 Origins and Dynamics of Regulatory Competition 198
3 Regulatory Competition in Digital Law 200
3.1 Digital Technologies as Regulatory Technologies: ``Code Is Law´´ 201
3.2 Towards Duopolies of Regulatory Supply: A Race to the Code? 202
3.3 Two-Tier Regulatory Supply: Legal Embeddedness of Regulatory Technologies 203
4 Examples of Application 204
4.1 Online Platform Terms 204
4.2 Smart Contracts 206
4.3 AI Governance 207
5 Conclusion 208
References 209

Produkt-Details

• Erscheint lt. Verlag: 24.2.2025
• Reihe/Serie: Advanced Studies in Diginomics and Digitalization
• Zusatzinfo: IX, 207 p. 3 illus.
• Sprache: englisch
• Themenwelt: Mathematik / Informatik ► Informatik ► Datenbanken
• Themenwelt: Informatik ► Theorie / Studium ► Künstliche Intelligenz / Robotik
• Themenwelt: Mathematik / Informatik ► Mathematik ► Statistik
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Wirtschaftsinformatik
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre
• Schlagworte: Artificial Intelligence • Big Data • Competition • Data economy • Digital Economy • Jurisdiction • legal framework • platform companies • Regulation
• ISBN-10: 3-031-81089-9 / 3031810899
• ISBN-13: 978-3-031-81089-3 / 9783031810893