Technological innovation has had a profound impact on the way we live, communicate, and work. The dawn of the Fourth Industrial Revolution has opened immense opportunities but also created significant challenges. Questions about cybersecurity, disinformation, and privacy, for example, vex businesses, governments, and private citizens alike. A different set of issues are related to the sheer size, reach, and power of the companies that comprise Big Tech and how to deal with them.

Being a large corporation, and being in the vanguard of a far-reaching and ever-expanding industry, is, by itself, neither good nor bad, but it will often lead to increased scrutiny. In some instances, this might result in attempts to either block certain companies from entering a market, or, alternatively, make it more difficult for them to operate in it. In 2015, for example, President Obama alluded to this when he accused the European Union of digital protectionism in its investigations of American tech companies— “[i]n defense of Google and Facebook, sometimes the European response … is more commercially driven than anything else.” But to chalk scrutiny of large tech companies and their business practices up to mere protectionism would miss the mark. The many benefits of modern technology notwithstanding, there are powerful economic factors within digital markets that limit competition and stifle innovation, and as a result can hurt consumers.

Concerns about Big Tech are also not confined to Europe. In fact, there seems to be a growing consensus in both the United States and the European Union of the need to, at a minimum, explore ways to check certain actions and the broader influence of the largest tech companies.

To be sure, there are differences in how Big Tech is viewed in the United States and Europe. At a basic level, many Europeans are viscerally suspicious of the market and the power of big corporations. This clearly also applies bodog casino to the tech sector, as evidenced by a poll conducted in the run-up to the European Parliament elections last year. Fully 64 percent of voters thought that the European Union had been too lax in its regulation of U.S. tech giants. By contrast, most Americans believe in the power of the market to self-correct and are warier of government overreach. Whether consciously or not, it is hardly a stretch to assume that these different attitudes inform thinking about competition policy and enforcement decisions on both sides of the Atlantic.

The focus of this article is on single-firm conduct, and the transatlantic divide over how best to use antitrust and competition policy to navigate this new and exciting world. Section 2 looks at what makes Big Tech unique from an antitrust perspective. Section 3 provides an overview of U.S. and EU competition law as it relates to single-firm conduct, as well as their respective institutional structures. Section 4 assumes a more prospective posture, looking at possible future trends and what steps Big Tech can take to protect its own interests in this environment.

To read the full article please click here.

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In this new report from the Scowcroft Center’s Transatlantic Security Initiative, Cyber Statecraft Initiative senior fellow Kenneth Geers argues that the best way for democratic states to defend their own cyber networks is to leverage the multinational strength of political and military alliances like NATO and the European Union. Alliances like NATO give democracies an advantage over their authoritarian rivals by providing already established mechanisms for multinational cooperation. Alliances are therefore better equipped to tackle the inherently international challenges of cybersecurity.  

To illustrate the impact of alliances on cybersecurity, Geers uses events in Ukraine as a case study, comparing the Ukrainian government’s efforts to defend against Russian cyberattacks shortly after the 2014 revolution with measures taken in cooperation with partners to defend the 2019 presidential election. Geers illustrates how collective action in 2019 produced improved security outcomes compared to efforts taken by Ukraine alone. Building on these lessons, Geers argues that the only structures likely to produce tangible results in cybersecurity are those within political and military alliances. Indeed, the only credible cyber superpower is a robust alliance. The report then offers a series of recommendations on how NATO and the EU can promote trust and collaboration among Allies and partners to build a more effective cyber alliance.  

To view the full report at Atlantic Council, please click here

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As the global leader in digital trade, the United States has a big stake in ensuring that international rules facilitating its continued expansion are put in place.

The Obama Administration’s bold agenda to establish these rules across Europe and the Asia-Pacific did not yield lasting success, with the failure of the Transatlantic Trade and Investment Partnership (TTIP) negotiations and the Trump Administration’s withdrawal from the Trans-Pacific Partnership (TPP). Nonetheless, the key elements of US digital trade policy enjoy bipartisan policy support, providing a promising basis for the next Democratic administration to re-engage with Europe, our biggest digital trading partner.

Part 1 of this issue brief explains why international rules are needed to protect and facilitate digital trade. Part 2 describes the turbulent past decade in transatlantic trade relations and the growing importance of US digital trade with Europe. Part 3 explains why the US government and the European Union (EU), during TTIP negotiations, were unable to agree on a digital trade chapter, including a key provision guaranteeing the free flow of data. Finally, Part 4 suggests how two parallel sets of trade negotiations beginning early this year — between the EU and the United Kingdom (UK) and between the United States and the UK — may help a future US Administration end the transatlantic stand-off over digital trade.

To view the full report at Progressive Policy Institute, please click here

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Economies with already strong underlying information technology are proving to be more resilient than those without this infrastructure already in place.  At a recent event, I listened to officials from Cambodia and Kenya explain how their strong digital track records are paying off bodog poker review during the current crisis.

In Cambodia, which had previously established an enabling regulatory environment around digital financial services, citizens were already accustomed to sending and receiving payments digitally, making it possible for the government to add tax functionality on to the pre-existing digital payment platforms. Similarly, in Kenya, citizens’ relative comfort with digital payments led to a recent uptick in the use of its e-tax system. The Kenya Revenue Authority has also been able to rely on its digital systems to obtain real-time data on emergency-related shifts in consumer spending, which helps the agency to predict the impact on revenues.

But the type of digital transformation necessary to get to this level is comparable to moving a boulder to the top of a mountain. It’s a long, arduous process, and it’s possible to lose footing along the way. Many economies, especially developing countries, rely on deeply entrenched systems and fight an uphill battle when it comes to public trust. In fact, many of the world’s lowest-income economies struggle to collect enough taxes to cover basic state functions. Add a global crisis into the mix and these tenuous relationships between taxman and citizen are likely to fall apart.

The current crisis provides an opportune moment to rework revenue strategies to be more digitally driven.  Tax administrations must shift the focus from simply processing taxpayers’ data to proactively improving compliance, policies, and efficiency. Modern revenue strategies will, to a large extent, have to run on digital platforms because they are necessary to effectively pursuing critical policy objectives such as:

• Broadening the tax base. Data-centric approaches can be used to close gaps and take advantage of missed opportunities without necessarily increasing the level of taxation. Such measures include: requiring e-commerce platforms to report sales in order to facilitate the collection of VAT and customs duties; analyzing past tax filings of citizens seeking relief under current stimulus programs to verify compliance; and supporting the collection of property taxes by matching the land registry with the taxpayer file.
• Enhancing transparency and trust. Establishing electronic platforms for tax registration, filing, payment, and dispute resolution make processes clear for citizens, provide assurances that tax payments end up in an actual government account, and reduce the risk of officials abusing their discretion. Implementation of technologies such as the MIT-incubated OPAL (Open Algorithm) provides bodog poker review researches, think tanks, or any citizen the ability to independently analyze tax data without having access to personally identifiable information. This will provide unprecedented transparency.
• Reducing the compliance burden. We know from a survey of 190 economies that it is getting easier for people and businesses to pay taxes. There are now 106 economies using electronic filing systems, double the number in 2004. Digital technology is reducing the time spent on paying taxes as well as the total number of individual payments taxpayers must make each year.
• Improving administrative efficiency. As governments mature in their use of information technology, they will be able to achieve substantial efficiency gains. For countries beginning their digital transformation, AI-enabled data capture of paper-based records can speed up the digitalization and reliability of the data. Others find significant value through the simplification of procedures and matching of filing information with third-party data sets. For more advanced tax administrations, the use of advanced analytics to identify underreporting will be a key value driver. In the current crisis, some administrations are also rethinking their balance between offsite and onsite audits.
• Advancing growth and other policy objectives. As the central depository of citizen data, tax administrations play an increasing role in advancing non-tax related objectives. For example, by using taxpayer data to: verify beneficiaries under cash transfer programs, monitor the consumption of goods with detrimental health impacts (e.g., alcohol and cigarettes), model tax policy responses to curb carbon emissions, identify growth drivers in the economy, detect labor market violations, and ascertain the well-being of vulnerable groups in society.

Progress toward these objectives has been uneven and the World Bank cannot get this “modernization boulder” to the top of the mountain alone. To help countries accelerate digital transformation, we need partners with multidisciplinary expertise who can help pull while we push. To that end, we co-founded the Prosperity Collaborative. This new multi-stakeholder initiative is dedicated to helping countries create better tax systems through innovative technology. Together with EY, New America, MIT and the Boston Global Forum, we are just getting started on a journey to bring tangible benefits to developing countries.  Our current priorities are –

• Developing global solutions to build capacity among developing countries and emerging market to undertake a successful digital transformation Bodog Poker of their tax administrations;
• Promoting thought leadership on tax and technology;
• Exploring the creation of a mechanism to identify, prioritize, fund, and implement digital public goods for use by tax administrations;

By bringing these leading organizations together under the banner of the Prosperity Collaborative, we aim to create solutions that are well-targeted and easily replicable across different country contexts. Ultimately, we aim to create digital public goods that can be built once and deployed anywhere.

To view the original World Bank Blog post, please click here

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