5 - The Objectives of Regulating the Data-Driven Economy

Summary

Data-related technology advancements have brought about a paradigm shift and have created a data-driven economy that requires a legal framework to regulate the economic behavior of its participants – both companies and consumers. However, legislators’ hands-off attitude, intended to promote a ‘free’ and unregulated Internet, has not realized the original internet dream of a borderless and radically democratic space. Some observers have even suggested that the Internet is beyond the sovereignty of governments, or even a fifth dimension, not subject to the same regulation as other domains of human activities.¹ This laissez-faire approach to the digital economy has created a lawless arena where the strong prevail. These powerful participants also dominate in terms of data – the Internet’s most valuable asset – and through their actions, system leaders and silo providers are in fact hindering the free flow of information by ‘hoarding’ data (or, as the Commission formulated it, ‘data lock-in’).² These barriers seem destined to increase in the future.