Research project

Investigator:

Nikolaos Theodorakis

Abstract:

The digital market may completely change the way international economy works. Potentially, it could make the whole world one market for consumers. Yet it suffers from restrictions that hinder its potential. Tackling restrictions relating to online services and cross-border data transfer is as important today as lowering tariffs on steel and wheat used to be in 1930.

As we move towards an increasingly data driven economy, it is important to regulate the digital market in the EU and the US in the right way, particularly in light of the ongoing Transatlantic Trade and Investment Partnership (TTIP) negotiations. Over the past few years, national governments have imposed controls on digital trade to protect data security and privacy, but these controls often create trade and competition barriers. Some barriers affect access to digital services, whereas others impose requirements on the establishment of digital services.

Today, the EU and the US must find the golden mean in regulating online services and the digital market. One can point to examples of both over-regulation (e.g., geo-blocking and data localization rules) and under-regulation (e.g., online platforms that may not operate transparently). Either way, regulation becomes inefficient. Over-regulation restricts trade and competition, creates an uneven playing field, and reduces both consumer and business welfare. Under-regulation leads to unpredictable online services, lack of transparency, illegal content, and data privacy concerns.
This project will explore the threats to the digital market from both over-regulation and under-regulation in the EU and the US and will discuss potential legal remedies.