Resilient Regulation for Digital Markets (RESREG)

Project description

Digital markets are characterized by strong demand-side and supply-side economies of scale, that often lead to manifested monopolies with significant market power that require for policy interventions. However, regulation faces a crucial trade-off between “specificity” tailored to current cases and “generality” for future-proofness, especially in the dynamic setting of digital markets with evolving technology. This tension is known as rule-based vs. principles-based regulation in legal terms. This project seeks to develop principles for resilient regulation that efficiently handles current cases while adapting to future developments. Specifically, the project focuses on interoperability regulation, a recurring regulatory theme in the digital industry. Our interdisciplinary approach combines legal, strategic, and information systems perspectives. Legally, we examine procedural aspects of resilient regulation that satisfies requirements of the rule of law and democratic legitimacy. Strategically, we adopt a retrospective-empirical view, analyzing the role and strategic impact of interoperability and multi-homing in various industries. Lastly, from an information systems perspective, we take a prospective, formal-analytical approach, considering the techno-economic trade-offs inherent to interoperability regulation. Moreover, across the disciplines, the project seeks to incorporate input from political and academic leaders, stakeholders, and regulators in the digital industry.

Project team