Regulating the Global Digital Economy

In this new paper, Douglas Lippoldt describes the current incomplete governance framework for the international digital economy and illustrates the importance of governance to private sector innovation. Market openness and framework conditions are particularly important for innovative firms that operate with high digital intensity. Better definition and alignment of governance of digital trade and data could improve privacy, trust and security; reduce friction in the context of conducting business; and increase international openness within the bounds of appropriate regulatory guardrails.

In considering the problems with social media, policy makers often focus on how to delete or demote egregious content. Platforms, too, detail in their public-facing reports how they delete content, including through the use of artificial intelligence. Heidi Tworek says that while questions around illegal content and algorithmic accountability are crucial, we could spend more time discussing how to create high-quality information online in the first place.

The effectiveness of sanctions against Russia will surely erode as ways are devised to evade them. Efforts to expand alternative financial payments systems that do not rely on the US dollar, US banks, and US and European clearing systems will undoubtedly accelerate. James A. Haley writes that such efforts point to the need for the coalition of countries levying sanctions to constantly police the perimeter and expand participation in the sanctions regime.

Akshay Singh argues that while violent Russian aggression rightly demands a strong Canadian response through steadfast commitment to allies and organizations such as the North Atlantic Treaty Organization, Canada cannot ignore China’s ongoing long-term efforts to reshape the international order and norms. At the end of the day, and just as with climate change, multilateral efforts will be key to promoting a healthy and stable rules-based international order.

Jun. 8 – 12:00 p.m. EDT (UTC–04:00): Please join CIGI for the third event in the Competition Policy Series!

The digital economy presents complex new challenges for law makers and competition policy. What are these recent challenges, their implications for innovation and society more broadly, and how can competition policy address them? These and other questions will be addressed by a panel of experts on June 8. Learn more and register here.

Last week, CIGI hosted the second conversation in this series to learn about experiences in the European Union, the United Kingdom and the United States, as their competition authorities move into the regulation of digital markets. Watch the recording here.