Challenges of Digital Platforms Regulation

Abstract

The working paper studies the problems of digital platforms regulation related to consumer protection, countering anti-competitive practices, designing preventive (ex-ante) regulations, interdepartmental and international cooperation. The study is highly relevant since digital platforms act as private regulators of their ecosystems. They set rules for users, shape the business environment, control the implementation of rules and the behavior of ecosystem participants. Thus, digital platforms control the behavior of citizens and businesses, while they (until recently) have not been controlled by the state and society. The working paper aims to analyze the main challenges that states face when shaping the new and extending the existing regulatory practices to digital platforms’ activities. Based on the results of the study, the authors assess the main regulatory challenges related to consumer protection, countering the monopoly behavior of developing platforms, developing ex-ante measures, establishing cooperation between various government bodies and international cooperation. The authors conclude with recommendations for improving digital platforms regulation, taking into account the identified challenges.

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