From regulating the Internet to imposing rules to AI

How to impose legal rules on technology ?

• Internet
• Digital Platforms
• Blockchain
• AI

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Regulatory tensions

The Brussel’s effect:

• Their goal is to create a cohesive single market across individual countries with diverse legal traditions and political institutions. The regulations are drafted through a process that reflects member states’ heterogeneous interests and accounts for a wide range of legal traditions
• Refers to the EU’s ability to set global regulatory standards without formal international agreements. It influences companies and governments worldwide (outside EU), compelling them to comply with EU rules.

$$ \text{Institutions} \\ \uparrow \\ \text{Rules} \leftarrow \textbf{Brussel's Effect} \rightarrow \text{Market} \\ \downarrow \\ \text{CJEU} $$

$$ \textbf{Challenges} \begin{cases} \text{Digital Colonialism} \\ \\\text{Economic Impact} \\\\\text{Timing and pace of the Law} \end{cases} \begin{cases} \text{Geopolitical Control}\\ \\ \text{R \& D}\\\\ \text{Normative uncertainties} \\ \text{Institutional Uncertainties} \end{cases} $$

From Draghi’s report there are 3 main areas of action, with a focus on boosting Europe’s position on in tech, economics and security**:**

• Close the innovation gap with the US & China, especially in advanced tech
• Balance decarbonization & competitiveness—one should not hinder the other
• Strengthen security and reduce reliance on third countries

Geopolitical level:

• Challenges:
  • difficulty in passing the growth stage
  • fewer unicorn companies (start-ups with values >$1B) in the EU
  • Many EU start-ups relocate to the US