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CANARY IN
THE COAL MINE:
WHY THE INTERNET
IS A LEAD INDICATOR
FOR GENERIC
REGULATION
CHRIS MARSDEN
UTRECHT
11 APRIL 2016
Canary in the coal mine: how Internet regulation leads
‘CANARY IN THE COAL MINE’?
Underground mining
High concentrations of
poisonous gases
Miners carried canary
When the canary stops
singing….
It’s about to fall down
Time to get out!
WE CAN MODEL FROM
EXAMPLES
INTERNET PLATFORMS HAVE
INTENSE INTERDEPENDENT
RELATIONSHIP WITH USERS
Users often don’t pay platforms for services
1. because they form an audience the platform
can sell to advertisers and direct marketers,
2. 3rd party vendors use platform to sell to users
1. paying the platform a commission
(e.g. eBay, Amazon Marketplace)
2. PLATFORM USERS ARE ALSO
PRODUCERS OF CONTENT
INCLUDING PERSONAL DATA
platforms as distributor and archive of that content,
• imposing terms of use including privacy & intellectual property
Private platform actors regulate much activity on the Internet,
including a durable and intense interaction with their users.
Also often dominant in their respective service offerings
• e.g. Google, Microsoft, Facebook, Amazon, Apple
No other private actors (utility companies or car manufacturers)
• has this intense a relationship with users/consumers.
PROSUMER LAW AND POLICY FOR
ONLINE INTERMEDIARIES: TOWARDS
A BEHAVIOURAL SOLUTION
A decade into the Web2.0 era
• intermediaries are extraordinarily powerful gatekeepers
• broadband social media advertising-dominated Internet
• that is now a ubiquitous presence in wealthy lifestyles
These include dominant operators in:
• search (Google), operating systems (Microsoft, Android),
• media (Apple iTunes, YouTube),
• social networking (Facebook),
• photo sharing (Instagram and Snapchat),
• chat (Skype and WhatsApp),
• commerce (eBay and Amazon).
These companies dominate their respective sectors.
USERS ARE ALSO PRODUCERS, HENCE
TERMED PROSUMERS (TOFLER 1980)
We rely on these platforms
• to process personal data fairly and securely.
Regulatory responses are finally emerging driven by
• both data protection & competition concerns
Over-arching need: greater neutrality of intermediaries
Limited to last mile monopolists & mobile oligopolists,
• legacy telecoms providing Internet access
PARTICULARLY AS
INFORMATION TECHNOLOGY
IS A GENERAL PURPOSE
TECHNOLOGY (GPT)
#DIESELGATE
FINANCIAL SERVICES
PLATFORMS RAISE SIGNIFICANT
PUBLIC INTEREST
REGULATION QUESTIONS
Private platforms are providing what amount to mass
communications services,
• in other eras (e.g. broadcasting)
• Platforms were tightly regulated for the public good
Competition law and general data protection concerns,
• while applicable, are recognised as providing
• insufficient public interest regulation for platforms
WHAT WE NEED
IS A
COMPREHENSIVE
PROSUMER LAW
SOLUTION
Draws on
• fundamental human rights to
• privacy and free expression,
• competition, and
• technology regulation
• to ensure a fair and neutral
deal for prosumers
MARSDEN AND BROWN (2013)
COMPREHENSIVE SOLUTION
Case studies examined:
• search, social networking, Internet access, EU/US competition
and data protection
The interdisciplinary mixed method used contains
• primary and secondary literature analysis and case analysis
(both regulatory and judicial, where relevant),
• qualitative empirical interviews with leading stakeholders and
• both economic and engineering quantitative data analysis.
Law, computer science and economics interdisciplinary analysis
to explore a comprehensive policy solution to intermediary
liability.
Canary in the coal mine: how Internet regulation leads
INTERNET FAST-MOVING
LIKE FINANCE
Why are we surprised?
Finance is the simultaneous global transfer of
trillions of bits of data
We choose value this data as ‘money’
• Options, derivatives, Credit Default Swaps
• All enabled by Internet trading
STRAIGHT SHALLOW CABLES
ENABLE MICROSECOND FASTER
TRANSFERS
SURVEILLANCE:
INTERNET NOT SO
INNOCENT
INTERNET
SELF- AND
CO-
REGULATION
IT’S ALWAYS ‘SAME-
SAME BUT DIFFERENT’
NEW ‘SAME SAME’
NEW ‘DIFFERENT’
.TK FREE DOMAIN NAMES
FOR THE WORLD
CO-REGULATION?
Government has enabling legislation to put regulation
in place but chooses to forbear
Example: Nominet (UK Digital Economy Act 2010
amending Communications Act 2003)
But: Authority for Television on Demand
• Set up as self-regulatory Association 2003
• Authority in 2010 DEA implementing 2007 AVMS
(2010/13/EU)
• Abolished in 2016 – functions integrated into Ofcom
BEREC & NET
NEUTRALITY

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Canary in the coal mine: how Internet regulation leads

  • 1. CANARY IN THE COAL MINE: WHY THE INTERNET IS A LEAD INDICATOR FOR GENERIC REGULATION CHRIS MARSDEN UTRECHT 11 APRIL 2016
  • 3. ‘CANARY IN THE COAL MINE’? Underground mining High concentrations of poisonous gases Miners carried canary When the canary stops singing…. It’s about to fall down Time to get out!
  • 4. WE CAN MODEL FROM EXAMPLES
  • 5. INTERNET PLATFORMS HAVE INTENSE INTERDEPENDENT RELATIONSHIP WITH USERS Users often don’t pay platforms for services 1. because they form an audience the platform can sell to advertisers and direct marketers, 2. 3rd party vendors use platform to sell to users 1. paying the platform a commission (e.g. eBay, Amazon Marketplace)
  • 6. 2. PLATFORM USERS ARE ALSO PRODUCERS OF CONTENT INCLUDING PERSONAL DATA platforms as distributor and archive of that content, • imposing terms of use including privacy & intellectual property Private platform actors regulate much activity on the Internet, including a durable and intense interaction with their users. Also often dominant in their respective service offerings • e.g. Google, Microsoft, Facebook, Amazon, Apple No other private actors (utility companies or car manufacturers) • has this intense a relationship with users/consumers.
  • 7. PROSUMER LAW AND POLICY FOR ONLINE INTERMEDIARIES: TOWARDS A BEHAVIOURAL SOLUTION A decade into the Web2.0 era • intermediaries are extraordinarily powerful gatekeepers • broadband social media advertising-dominated Internet • that is now a ubiquitous presence in wealthy lifestyles These include dominant operators in: • search (Google), operating systems (Microsoft, Android), • media (Apple iTunes, YouTube), • social networking (Facebook), • photo sharing (Instagram and Snapchat), • chat (Skype and WhatsApp), • commerce (eBay and Amazon). These companies dominate their respective sectors.
  • 8. USERS ARE ALSO PRODUCERS, HENCE TERMED PROSUMERS (TOFLER 1980) We rely on these platforms • to process personal data fairly and securely. Regulatory responses are finally emerging driven by • both data protection & competition concerns Over-arching need: greater neutrality of intermediaries Limited to last mile monopolists & mobile oligopolists, • legacy telecoms providing Internet access
  • 9. PARTICULARLY AS INFORMATION TECHNOLOGY IS A GENERAL PURPOSE TECHNOLOGY (GPT)
  • 12. PLATFORMS RAISE SIGNIFICANT PUBLIC INTEREST REGULATION QUESTIONS Private platforms are providing what amount to mass communications services, • in other eras (e.g. broadcasting) • Platforms were tightly regulated for the public good Competition law and general data protection concerns, • while applicable, are recognised as providing • insufficient public interest regulation for platforms
  • 13. WHAT WE NEED IS A COMPREHENSIVE PROSUMER LAW SOLUTION Draws on • fundamental human rights to • privacy and free expression, • competition, and • technology regulation • to ensure a fair and neutral deal for prosumers
  • 14. MARSDEN AND BROWN (2013) COMPREHENSIVE SOLUTION Case studies examined: • search, social networking, Internet access, EU/US competition and data protection The interdisciplinary mixed method used contains • primary and secondary literature analysis and case analysis (both regulatory and judicial, where relevant), • qualitative empirical interviews with leading stakeholders and • both economic and engineering quantitative data analysis. Law, computer science and economics interdisciplinary analysis to explore a comprehensive policy solution to intermediary liability.
  • 16. INTERNET FAST-MOVING LIKE FINANCE Why are we surprised? Finance is the simultaneous global transfer of trillions of bits of data We choose value this data as ‘money’ • Options, derivatives, Credit Default Swaps • All enabled by Internet trading
  • 17. STRAIGHT SHALLOW CABLES ENABLE MICROSECOND FASTER TRANSFERS
  • 20. IT’S ALWAYS ‘SAME- SAME BUT DIFFERENT’
  • 23. .TK FREE DOMAIN NAMES FOR THE WORLD
  • 24. CO-REGULATION? Government has enabling legislation to put regulation in place but chooses to forbear Example: Nominet (UK Digital Economy Act 2010 amending Communications Act 2003) But: Authority for Television on Demand • Set up as self-regulatory Association 2003 • Authority in 2010 DEA implementing 2007 AVMS (2010/13/EU) • Abolished in 2016 – functions integrated into Ofcom