Regulation and Digital Economy

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 237-240

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal web link: http://www.jett.dormaj.com

Regulation and Digital Economy

M. Citra Ramadhan *, Ramlani Lina Sinaulan , Maryano , Sri Hartati , Phong Thanh

Nguyen *

Universitas Medan Area, Medan, Indonesia

Universitas Jayabaya Jakarta, Indonesia

Institut Pemerintahan Dalam Negeri Indonesia, Indonesia

Department of Project Management, Ho Chi Minh City Open University, Vietnam

Received: 27/06/2019

Accepted: 29/10/2019

Published: 20/02/2020

Abstract

As focus on monopolistic behavior the advance in technology need to take in regulation. Light touch regulation has to a great

extent been the mantra of the worldwide tech industry from the beginning and numerous legitimately credit it for the pace of

development and advancement the business has seen. Innovation symbolizes development, development and markets while

guideline spots restrains on development and symbolizes organization. Regulation and innovation are frequently acted like

enemies. Be that as it may, guideline itself is an innovation. The advanced economy has been developing significantly as of late,

generally because of new digital innovations that are elevating a worldwide change to industry The resulting extension of digital

exchange has started off a political and strategy contention on digital economy and web based business, where its limits stand and

how best to manage it.

Keywords: Regulation, Innovation, Digital economy, Development

Introduction

0 years back, regulators and the open assumed that the

ascent of digital stages and their guarantee to evacuate

mediators and bottlenecks would give new financial

chances to the individuals who had been closed out by the

current occupants. Today, a bunch of organizations control

impossible bits of the world's financial movement and

venture capital. 10 years back the ascent of internet based

life seemed to introduce a brilliant time of resident

reporting and star majority rules system developments

around the world [1-5]; today, we see these equivalent

stages used to spread paranoid ideas, detest discourse and

phony news intended to undermine our vote based system

and sow doubt in our central foundations of government.

The digital megatrend as of now appreciates vast

opportunity and financial advantages with a low degree of

social duty. Society and the economy are quickly changing

as customary plans of action are by and large carefully

changed and whole enterprises flipped around [6].

Figure 1: Regulation with Digital Economy [6]

Corresponding author: (a) M. Citra Ramadhan1,

Universitas Medan Area, Medan, Indonesia. E-mail:

citra@staff.uma.ac.id, (b) Phong Thanh Nguyen,

Department of Project Management, Ho Chi Minh City

Open University, Vietnam. E-mail: phong.nt@ou.edu.vn.

Figure 2: Regulation and Economy consideration [6]

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2020, Volume 8, Issue 1, Pages: 237-240

Both the general population and private division

celebrate digital innovation, productivity and adaptability,

yet potential dangers could likewise lie ahead. Current

dangers go from the maltreatment of licensed innovation or

of patient information, to advanced extortion inside

financial foundations, to programmers assaulting vitality

systems and digital fear based oppressors that incapacitate

open organizations. These dangers as of now exist.

It is extensively progressively hard to work and stay gainful

in this overregulated region, notwithstanding for the

greatest players in European banking. HSBC is

notwithstanding thinking about a move from London to

Asia. An ongoing BearingPoint Institute study, "Bank

supportability arrives at a tipping point," investigates this

top to bottom and infers that the greatness long periods of

banking could be arriving at an end [10-12].

Table 1: Objective of Regulatory Framework [7]

2. Result and Discussion

In this section first of all challenges regarding regulation

going to be investigated:

Digitalisation presents great and unprecedented

opportunities. However, considerable uncertainty remains

on the evolution of such transformative technologies.

Governments should proactively seek

deeper

understanding of the potential implications for society as

well as of the critical challenges these emerging

technologies pose to their rulemaking activity. The

challenges can be broken down into four broad categories:

i) the pacing problem; ii) designing “fit-for-purpose”

regulatory frameworks; iii) the regulatory enforcement

challenges; iv) the institutional and transboundary

challenges. Pacing problem. Beyond the nature of digital

innovation, the sheer pace of technological change itself

fundamentally challenges contemporary regulation. Digital

technologies tend to develop faster than the regulation or

social structures governing them. While the disconnect

between the technological pace and regulation has always

been a concern, there is a growing consensus that digital

technologies break new “pacing” grounds. Designing “fit-

for-purpose” regulatory frameworks. Digitalisation blurs

the usual delineation of markets and sectors, as illustrated

by the “new” convergence in telecommunications, media

markets and digital platforms. It also confuses the

traditional distinction between consumers and producers, as

is the case with the rise of individual ”prosumers” in the

electricity market that both consume and supply energy to

the network. This blurring of boundaries affects, inter alia,

the scope of the regulators’ mandate and activities. The

economic properties of digital business also challenge the

standard cost-based regulatory models as price formation in

the digital economy obeys different rules. New forms of

regulatory intervention may be needed to address emerging

market failures deriving from information asymmetries in

some digital markets (e.g. transactions of personal

information in return for “free” digital products or

Regulatory modernization – that is, updated rules that

match new facts – will promote investment, competition

and innovation throughout the digital economy ecosystem,

and will protect consumer interests and expectations no

matter who is providing the service. Markets and

technologies are evolving with great speed. Policy

frameworks must not lag decades behind.

In this process, close consultation with all stakeholders

is important to avoid unintended consequences of new

policies or regulations. Such consultation will help strike

the right level of protection for consumers while

fostering competition, investment and innovation. Given

the imperative of business investment in delivering jobs

and economic growth, as well as driving innovation and

competition, regulators are encouraged to engage

meaningfully with business throughout the policy-making

process.

Literature review

History has demonstrated that extraordinary

transformations are immediately celebrated however can

likewise be seen rather brutally with some reflection,

similar to the case during the modern transformation.

During the last half of the eighteenth century, industrialized

generation strategies rapidly spread from England to

mainland Europe and North America. As the monetary

prizes were so extraordinary, there was little respect for

contamination or social abuse. Notwithstanding, this

changed after some time as did the effect of regulations that

molded the assembling business [9].

A present case of the effect of guideline on an industry

can be found in the ongoing financial emergency. The

monetary part was scarcely managed before the breakdown

of Lehman Brothers in September 2008. Post-2008,

governments and foundations hope to control the social and

monetary effect of unregulated markets and ventures with

controllers crosswise over Europe attempting to make the

budgetary segment emergency verification. This has gone

so far that "over consistence" is connected to the segment.

services).

Regulatory

enforcement

challenges.

Digitalisation challenges regulatory enforcement by

questioning the traditional notion of liability. In particular,

it makes it more difficult to apportion and attribute

responsibility for damage or harm caused by the use of

technology to end users. A specific example is provided by

the difficulty to enforce copyright/property rights with the

internet offering new ways to distribute content. Another

example is the difficulty of attributing liability (to the

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Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 237-240

vendor, the distributor, or the original equipment

manufacturer?) when AI is involved. Institutional and

transboundary challenges. The traditional institutional

framework underpinning regulations – around sector or

activity-focused ministries and agencies – is also showing

its limits when dealing with the transversal challenges

raised by digitalisation. Digital technologies can indeed

span multiple regulatory regimes, creating the potential for

confusion and risks. Moreover, digitalisation pays no

regard to national or jurisdictional boundaries and

drastically increases the intensity of cross-border flows and

transactions. It gives businesses global reach while being

able to locate various stages of their production processes

or service centres across different countries. This feature

enables companies to “forum shop” or to avoid compliance

when it comes to their physical presence, their internal tax

policy, and their policy for data protection or other

regulated areas. The mismatch between the transboundary

nature of digitalisation and the fragmentation of regulatory

frameworks across jurisdictions may undermine the

effectiveness of action and therefore people’s trust in

government. It may also generate barriers to the spread of

beneficial digital innovations.

Figure 5: Share of small business over the countries taking

example of online business (ebay) and offline business

Factors of Digital Economy in the Market. In digital era

for participation in market some factors are given below

that recommend for participants:

against potential misuse and network attacks

development of protective measures

. Digital backlog and current business model review

3. Assessment and digital trends of potential threat analysis

4. in the planning of technical resources and company

evolution of existing model

Sustainable digital strategy implementation and

development

Around the digital single economy the digital economy

provide many challenges. The truth of the matter is, for the

digital economy to flourish, uniform lawful arrangements

are required, and simultaneously this uniform collection of

law must not hamper the spread of advancement and

progress inside the digital economy.

.1 The Evolution of Regulation and Innovation

As economic activity has increasingly moved from

traditional telephony to the more robust platforms of

wireless and wireline broadband communications, the

potential exists for substantial improvements in the

economic lives of both citizens and businesses. This

transition has also given rise to numerous policy issues

regarding how to foster innovation and added economic

welfare in this vital sector.

The work offers an establishment of scholastic research

and strong new speculation on basic issues at the crossing

point of innovation advancement and regulation. The

Evolution of Regulation and Innovation Project investigates

the connection between regulation in this area and

development with regard for strategy changes and how they

influence financial results both for customers and the

bigger economy. The Evolution of Regulation and

Innovation Project connects with driving researchers,

policymakers, controllers, business pioneers, and industry

specialists from over the Internet biological system.

Figure 3: Report of Digital Transformation

Uber,

the

online

stage

for

transportation

administrations, and Airbnb, the network commercial

center for rental facilities, are the most mainstream yet in

addition the most dubious models from the flourishing

sharing economy. They depend on the peer-to-peer (P2P)

standard: business is led legitimately between stage clients.

Uber, Airbnb and comparative organizations profit by

especially low passage and leave boundaries for specialist

co-ops and clients. They outrage conventional market

members, yet considerably customer and security

promoters have stood up and scrutinized rehearses, e.g.,

how they handle, or misuse individual data, for example,

area information by means of GPS.

Conclusion

The digital economy – that piece of economic yield got

exclusively or essentially from digital innovations with a

plan of action dependent on computerized merchandise or

administrations – is of expanding significance to creating

nations. However digital economy the truth is

undershooting its potential in these nations, because of a

progression of difficulties. Advanced foundation is to some

extent deficient, expensive and ineffectively performing.

The more extensive computerized biological system

endures a setback in human abilities, powerless financing,

and poor administration. Development in the digital

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Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 237-240

economy is intensifying advanced prohibition, imbalance,

antagonistic fuse and other digital loss.

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