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Giuseppe Peressotti

June 17th, 2024

Digital Empires: The Global Battle to Regulate Technology – review

1 comment | 13 shares

Estimated reading time: 6 minutes

Giuseppe Peressotti

June 17th, 2024

Digital Empires: The Global Battle to Regulate Technology – review

1 comment | 13 shares

Estimated reading time: 6 minutes

In Digital Empires, Anu Bradford examines the complex global landscape of digital regulation, comparing the American, Chinese and EU models. Elucidating the legal intricacies and political conflicts involved in regulating digital economies, Bradford’s timely work provides a critical, multi-layered framework for understanding this rapidly evolving area, writes Giuseppe Peressotti.

Digital Empires: The Global Battle to Regulate Technology. Anu Bradford. Oxford University Press. 2023.


Anu Bradford Digital Empires book coverIn the context of a world defined by entrenched globalisation and a never-ending quest to seek the newest innovation in tech, Digital Empires: The Global Battle to Regulate Technology provides a thorough account of the three biggest regulatory models revolving around the global digital economy. The US, China, and the EU are compared by delving deep into their domestic legal (and political) systems, analysing how they interact with each other, and underlining strengths and weaknesses that could hint at how an ultimately impossible question could be answered: How is the future of the digital world going to look? Considering the complexity of this topic, no certain answer can be given yet. However, Anu Bradford lays out a multi-layered framework through which we can navigate the intricacies of the digital regulatory system.

Different actors are involved in defining digital-related policies, making it essential to consider how they interact at different levels

Different actors are involved in defining digital-related policies, making it essential to consider how they interact at different levels. In the book, each of these economic powers is represented as a “Digital Empire”, which aims to export its domestic policy and challenge the global status quo around the internet, privacy and technology. Global firms will hence have to deal with inherently conflicting systems, trying to comply with rules from the most profitable markets in a “vertical battle”, and by confronting foreign competitors who might be abiding by different rules in a “horizontal battle”.

The author delineates these concepts at the outset, presenting what is at stake for everyday citizens when we talk about digital regulations: “The resolution of these battles has a direct bearing on economic prosperity, political stability, and the individual freedom of every person that uses the internet” (23). The book tackles each of these topics, with the first part focusing on each specific model, the second analysing the conflicts surging from the collision of these “Empires”, and the last dealing with their latest expansion.

The US is described as having a ‘techno-optimist’ view on digital regulation, basically letting the invisible hand take care of the market while maximising free speech and the pursuit of innovation.

The first three chapters delve deep into each system, providing examples from the real world while pushing the author’s theoretical argument. The US is described as having a “techno-optimist” view on digital regulation, basically letting the invisible hand take care of the market while maximising free speech and the pursuit of innovation. China is viewed as “techno-nationalist”, with policies that aim at protecting its domestic market as much as possible, while shielding its local userbase from outside influences. The EU is depicted as “rights-driven”, focusing on preserving freedom of expression and fundamental rights.

However, the strength of this section lies in the nuanced depiction of each model: although each of these institutions clearly aims to push a specific agenda, there is common ground when it comes to adopting certain digital policies. For instance, both the US and the EU are increasingly more concerned about foreign competition and their own domestic interests; a higher number of internet users outside of Europe are demanding stronger digital regulations; and non-American companies are also shown to lobby for a hands-off approach in the name of advancing their innovation objectives. Further, the author presents how each model is being criticised around the world, possibly suggesting that there is no perfect regulatory system.

Countries want to adopt divergent regulatory frameworks and, at the same time, hold foreign companies to higher standards due to a mix of security concerns and fear of heightened competition

The second part of the book explores the intersections connecting each model, presenting more examples of how different agendas ended up colliding. Countries want to adopt divergent regulatory frameworks and, at the same time, hold foreign companies to higher standards due to a mix of security concerns and fear of heightened competition. In practice, this translates into companies such as Google or Meta almost completely abandoning the Chinese market, the Chinese DiDi fleeing the New York stock exchange in favour of Hong Kong, or the EU sparking outrage in the American corporate world after passing its General Data Protection Regulation (GDPR). The author further presented how tit-for-tat retaliatory measures – in the form of FDI restrictions and export controls – fostered events such as the “US-China Tech War”.

In its last section, the volume compares each model’s contemporary standing, highlighting its recent direction. Despite the long-lasting success of American tech companies, techno-libertarianism seems to be losing its appeal due to pressures from countries adopting more aggressive industrial policies. On the other hand, the prospects of enabling stronger control over a certain domain made the Chinese model more appealing to authoritarian regimes through projects such as the Digital Silk Road. Likewise, the political strength and high value of the European market – a combination epitomised in the famous Brussels Effect – made its rule-based model spread across the globe, with more and more countries adopting relatively higher privacy standards.

The author draws a picture of a world that is interconnected and yet struggling to find a common ground to foster cooperation. The divide appears to be especially deep between the West and China

Overall, the author draws a picture of a world that is interconnected and yet struggling to find a common ground to foster cooperation. The divide appears to be especially deep between the West and China, seen as a systemic rival and competitor by both the US and the EU. This could potentially be a challenge for multilateralism and, in general, cooperation at the international level. Digital regulation, on the other hand, is viewed positively as long as governments can navigate the challenge posed by powerful tech companies lobbying against regulations that protect citizens’ rights. While the global shift away from a completely hands-off approach suggests this issue might be short-lived, the ever-changing nature of technology throws a wrench in such predictions. Legislation notoriously lags behind these rapid advancements, making future policy outcomes difficult to predict.

The world of technology and innovation moves so fast that regulations can hardly keep up

Though the outlook of the book is somewhat pessimistic, the author engages readers by making use of enticing and easy-to-follow storytelling. Each chapter builds on top of each other in a streamlined manner, progressively expanding the narrative’s scope from a national focus to a broader, global perspective. Examples of real-world events and regulations are always paired with detailed contextual information. Accessible to any kind of reader with some basic knowledge about policymaking and digital governance, the book prioritises clarity over concision, by repeating similar arguments. The presented theory is original, logically coherent, and, most importantly, extremely relevant: the world of technology and innovation moves so fast that regulations can hardly keep up. A pertinent example of this phenomenon is the recent explosion in the use of generative AI, not tackled by the book, but already under the scrutiny of policymakers. Considering a context where different big players prioritise their own agendas, the general public’s growing awareness and knowledge of digital rights, and growing understanding of the potential risks of an unregulated digital market, Bradford’s timely book will likely only become more relevant.


Note: This review gives the views of the author and not the position of the LSE Review of Books blog, nor of the London School of Economics and Political Science.

Image credit: UladzimirZuyeu on Shutterstock.


 

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About the author

Giuseppe Peressotti

Giuseppe Peressotti

Giuseppe Peressotti is a dedicated scholar in the field of International Political Economy, currently pursuing his PhD in Public Policy and Political Economy at the University of Texas at Dallas. He holds a Master of International Studies with a focus on International Trade and International Finance from Sogang University, South Korea. As a second-year PhD student, Giuseppe's research delves into the intricate relationships between international trade, preferential trade agreements, the digital economy, and geopolitics

Posted In: Book Reviews | Law and Human Rights | Science and Tech

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