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Regulating big tech lectures and working groups

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  • May 30, 2021
  • 37
  • 2020/2021
  • Class notes
  • Stefan kulk
  • All classes
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Week 1 samenvatting hc en wg

SETTING THE SCENE: BIG TECH AND THE FUNDAMENTALS OF REGULATION

What is big tech?

5 information technology companies  google, apple, facebook, amazon. Started to play a bigger
role in our society. They are integrated in the many things we do. Through their services they are
becoming an integral part of our lives. They are deeply integrated.

Why consider big tech?

3 reasons:

1. The devices are becoming an ecosystem and the ecosystems are emerging. The companies
are active on several technology markets with a monopolistic or oligopolistic nature. People
tend to get locked in the ecosystem. There is also vertical integration of services. For
example: google is integrating in other markets, moving in to the domain of content. So,
there is equal systems forming and there is integration of services taking place.
2. Data processing is a key ingredient of their businessmodels  data protection law. Privacy
can be an issue here  creating chilling effects. It can also be related to democracy 
Cambridge analytica scandal  data collection can manipulate citizens when the elections
are being held
3. They have become central actors in our information societies.  google can steer you in a
certain direction as a user. Also creates risks. Being the central actor give these companies
power in what info comes to you but also it creates responsibilities as to what info is seen by
people.

What is regulation?  (intervention by governments into society

- Selznick  regulation is the sustained and focused control exercised by a public agency over
activities that are valued by a community
- OECD  regulation is broadly defined as imposition of rules by government backed by the
use of penalties that are intended specifically to modify the “economic behaviour” of
individuals and firms in the private sector

Why regulate?

- The market economy
 This is how we allocate goods and services. We believe in the idea of a free market
economy where forces of supply and demand are free of the government.
 The market doesn’t always produces sufficient or desirable results  3 types of market
failures  give reasons to regulate and to interveine in the system of the free market
 Information asymmetries
 Externalities  costs which aren’t integrated by producers or buyers  pollution
 Non-competitive markets  not much services to choose from.
- we should take care of eachother
- fundamental rights protection

,How to regulate?

Spectrum of state regulation vs. selfregulation

- State regulation  government is laying down rules
- Coregulation  governments work together to lay down rules. interaction
- Selfregulation  people are regulating themselves  companies that write codes of
conduct

Who regulates?

- European union is the primary regulator
- National legal order
- Member states
 We need to think about which entity is the best place to regulate in a particular area.
Cooperation?

When to regulate? Timing

We don’t know what the effects of the implementation of regulation is on the technologies. Before
or after? The perception of regulating may change over time.  as you see effects of earlier
decisions occur.

Law is always lagging behind technological developments.  technology occurs before law is written
down.  should we regulate technology in neutral terms or very specific rules? There is
combinations possible.

Broader rules provide less legal certainty. Specific rules provide more certainty, but changes make
sure that these rules are less effective.

Think about big tech, societal values that are at stake an to what extend regulation is necessary.

WG:

What are the main features of big tech?

Big tech refers to companies who have driven major societal change via their dominance and role in
online activities.  providing and collecting information.

- Economic  vertical integration, economies of scale and scope, network effects 
monopolistic, oligopolistic, dominant
- Informational  access to news/content/information  central actors in our information
societies
- Infrastructural  hardware ( physical infrastructures), data and algorithms  their business
model revolves around data processing
- Societal and democratic  public role/functions, connecting people, entertainment,
resource sharing

,What are the challenges posed by big tech in our society?

- Economic  no meaningful rivalry, abuse of dominance. Can be argued that bc of their
dominance, there is need for a certain regulation. Isn’t much room for other companies to
compete with them.  uber eats and thuisbezorgd dominate the market, also google and
apple. Users get locked in!
- Informational  disinformation, fake news, deep fakes, filter bubbles, hate speech 
reinforces polarization, algorithms aren’t transparent  can be connected to democratic
issues.
- Societal and democratic  addictive design, impact on mental health/public health,
influencing election  They can stear you into certain information  problem for
democracy.
- Fundamental rights  freedom of speech, discrimination, privacy  collecting a lot of info
from us to sell it to other parties. But also  deleting tweets can be seen as infringement of
freedom of expression. The internal policies of the platforms are the guidelines on what is
right or wrong.

How can regulation be understood according to Ogus?  literature

‘’a sustained and focused control exercised by a public agency over activities that are valued by the
community. ‘’
also
"We need to recognize that 'regulation' is fundamentally a politico-economic concept and, as such,
can best be understood by reference to different systems of economic organization and the legal
forms which maintain them"

- Private law system  free market law  market actors are able to set up their own rules,
based on supply and demand. Little or no governmental control. Less regulation.
 Facilitative
 Private laws  not by the government, but the law of supply and demand
 Private
 Decentralised
 Private interest theory of regulation
- Collective law system  government directs you what is perceived to be in public interest.
 Directive function  control by a superior
 Public law  for the state to enforce the obligations which cannot be overreached
by private agreement between the concerned parties
 Centralised  state plays a fundamental part in formulation as enforcement of the
law
 Public interest theory of regulation

Taking into account the distinct regulatory rationales, how can regulating big tech be justified?

 Because of the public interest.
- Market failures  when there are, there should be regulation

,  Monopolies  dominant position leaves no room for other companies to compete.
 Baldwin. A stricter competition law is desirable to guarantee fair competition.
 Externalities  pollution the companies do and which they don’t get accounted for
in price
 Information asymmetries  market doesn’t produce enough info for both parties.
Stronger party has more info.
 Social interest
- Social protection  solidarity, questions about healthcare.
- Human rights  infringement of freedom of expression, privacy problem




WEEK 2 OVERVIEW OF EUROPEAN COMPETITION LAW AND ZOOMING INTO ABUSE OF DOMINANCE

When we talk about regulation:

Why? – Is there a problem, and what is the problem? Why would you regulate in this area, with what
goals?
Who? – At what level do we want to regulate? (International, EU, national). And regarding EU
institutional context: what role is there to play for the EU/Member States?
How? – What instruments do we have to regulate? What rules and instruments are already in place?

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