I am sharing a contribution I had made during a meeting in relation to the UN's Digital Cooperation Initiative at New Delhi. I had stated that, today the old regulatory silos of telecom (networks and services), IT (OTTs, internet content, cloud computing, cyber security etc.), financial services (e-payments), Information & Broadcasting (content) etc. may actually be impeding the efforts of governments across the world to address challenges emanating from digital economy. This is particularly relevant for developing countries.
Addressing the digital divide requires a holistic approach addressing both supply (infrastructure and services) and demand side (skills capacity building) initiatives. Then, there are many challenges emanating from e-markets such as data collection and processing, complex competition and consumer protection issues (e.g. those arising from market power of large e-platforms), which particularly developing nations may be ill equipped to deal with. This is all the more pertinent given that developing country markets are among the biggest sources of data and revenue for the large global digital players but need capacity building to tackle these complex issues. This calls for international cooperation. Not only will the lack of uniformity in international approach harm the growth of digital markets which cut across borders (for e.g. mismatched approaches towards data protection, taxation and competition law), the lack of capacities can also be harmful from view point of exploitation of consumers.
This calls for global consensus on standards, principles and practices. As a senior officer from the telecom department, I have participated in ITU deliberations and often seen how such bodies despite their tremendous contribution are handicapped by the aforementioned silos when it comes to progressing discussions on complex issues surrounding digital markets. Thus, while the ITU has been discussing data protection and privacy, OTTs and competition issues during the deliberations of the current cycle of ITU Development Sector's Study Group 1, and I have personally made contributions and presentations on this matter, we are also stymied by issues of mandate.
As a method of dealing with the above mentioned challenges, I would like to suggest that the UN could in fact help by encouraging nations across the world, to create an informal yet international body to address these challenges. From my experience of heading the Mergers & Acquisitions work at the Competition Commission of India and co-chairing the International Competition Network's (ICN) Merger Working Group with Canada and the EU, I would highly recommend the model followed by the ICN.
It is an informal yet effective institution which does not make rules but arrives at best practices which member states are free to adopt. It is a professional, global organisation led by national governments (competition regulators). It is focused on real world competition issues and is relatively free from bureaucracy. It covers almost every facet of competition law organised into relevant verticals. It has active participation from NGAs and academia and has contributed tremendously to voluntary internationally accepted standards, consensus building and capacity building and has promoted global business by facilitating multi-jurisdictional competition compliance. At the same time it has served as a valuable forum for learning, collaboration, exchange and capacity building.
This model can very usefully be adapted to suit the multi-faceted needs of digital cooperation.
This model can very usefully be adapted to suit the multi-faceted needs of digital cooperation.
