Law and Economics of the Digital Transformation

Preface
Contents
Contributors
Part I: Insights from Behavioural Economics
Digital Nudges: Contours and Challenges
1 Introduction
2 Offline Nudging
3 The Basic Contours of Digital Nudging
4 Challenges Posed by Digital Nudging
5 Conclusion
References
Part II: Contracts in Digital Markets
Do Smart Contracts Incur Higher Transaction Costs Than Traditional Contracts?
1 The Issue
2 What Is a Smart Contract?
3 Transaction Costs Due to a Lack of Legal Adaptation
4 Transaction Costs of a Bad Adaptation
5 Concluding Remarks
References
Digitalization’s Big Promise and Peril: The Personalization of Insurance Contracts and Its Legal Consequences
1 Introduction: The Notion of “Personalization”
2 Typical Instances of Mispersonalization of Consumer Insurance Contracts
2.1 Incorrect Pricing of Insurance Cover
2.2 Inadequate Insurance Cover
3 Results and Conclusions
References
Law Without Markets?
1 Introduction
2 The Problem of “Free”
2.1 Non-monetary-Payment Does not Necessarily Mean “Free”
2.2 Making Someone Else Pay Does not Mean “Free”
2.3 Altering Brains Does not Mean “Free”
2.4 Implications
3 Algorithmic Matching
3.1 Traditional Market Mechanics Versus Algorithmic Matching—Price, Markets, and Information
3.2 The Rise of Algorithmic Matching
3.3 Algorithmic Matching Platforms Undercut the Assumption of a Unique, Stable Baseline Economic Equilibrium
4 Implications and Conclusions
References
Part III: Digitalisation and the COVID-19 Pandemic
Online Commercial Courts and Judicial Efficiency: Evidence from the COVID-19 Pandemic in Poland
1 Introduction
2 Literature Review
3 COVID-19 and the Judiciary of Poland
4 Data Set and Empirical Strategy
4.1 Data Set
4.2 Empirical Strategy
5 Estimation Results
5.1 Data Envelopment Analysis
5.2 Stochastic Frontier Analysis
6 Conclusions
Appendix
References
Tax Administration Toward Digitalization in the COVID-19 Environment—Case Study Bosnia and Herzegovina
1 Introduction
2 Economic Analysis of Digitalization of Tax Administration
3 COVID-19 as an Accelerator of the Digitalization Process
4 Tax Administration in Bosnia and Herzegovina
4.1 The Scope of Digital Transformation in BiH
4.2 Desk Analysis of the Digital Services of Entity Tax Administrations During the Pandemic
4.3 Work of the Indirect Taxation Authority in Pandemic Circumstances and the Challenges of Digital Transformation
4.4 Can Bosnia and Herzegovina’s Fiscal Federalism Be Seen as Sludge in the Digitalization Process?
5 Conclusion
References
Part IV: Copyright Law
Digitalization: On the Way to a New Copyright Architecture?
1 Introduction
2 Law and Technology
2.1 Functional Approaches
2.2 Challenges of Code
3 New Copyright Architecture
3.1 From Digital Rights Management Systems to “Regulatory Technology”
3.2 Registries
3.3 Licensing Management
3.4 Royalties’ Management
3.5 Enforcement of Copyright
3.6 Non-fungible Tokens in Particular
4 Benefits and Limits of a New Copyright Architecture
5 Outlook
References
A Digital Single Market, First Stop to the Metaverse: Counterlife of Copyright Protection Wanted
1 Introduction
2 Evolution of the Copyright Acquis in the US and EU
2.1 DMCA and Fair Use
2.2 From Under-Enforcers to Over-Enforcers
2.3 EU Copyright Acquis and Exceptions or Limitations
3 The Metaverse and Copyright Enforcement
3.1 Potentiality of the Metaverse
3.2 Immersive Experiences
3.3 Places to Experiment
3.4 Predecessors of the Metaverse
3.5 The End of Walled Gardens?
3.6 Dark Potential of the Metaverse
4 Safeguards for Legitimate Use of Content
4.1 Mandatory and Optional Exceptions or Limitations
4.2 Stakeholder Dialogues
4.3 Sufficient Safeguards Against Over-Blocking
5 Designing Algorithmic Exceptions or Limitations
5.1 Setting the Parameters
5.2 Protected Subject Matter
5.3 Automated Exceptions and Limitations Recognition
5.4 Who Will Set the Parameters?
5.5 Automated Content Recognition Should be Qualified High-Risk
5.6 Regulation of AI
5.7 Incentive Against Over-Enforcement
5.8 Hard Law to Create Soft Law
6 Conclusions
References
Deepfakes, Copyright and Personality Rights an Inter-Disciplinary Perspective
1 Introduction
2 Technology Behind Deepfakes
3 Deepfakes, Copyright and Personality Rights
3.1 Deepfakes and Copyright and Related Rights
4 Deepfakes and Personality Rights
4.1 Copyright and Personality Rights: Does One Prevail Over Another?
4.2 Droit Moral: The Thread that Weaves Copyright and Personality Rights
5 Blockchain and Deepfakes
6 Conclusion, Recommendations and the Road Ahead
References
Part V: Competition Law
Innovation in High-Tech Mergers: Should Competition Law Bother?
1 Introduction
2 Background
2.1 High Technology Industries
2.2 Innovation
2.3 Rationale for Merger Control
2.4 Commission’s Merger Control Methodology
3 Market Definition
3.1 Market Definition in High-Tech Industries
3.2 Technology Markets
3.3 Future Markets
3.4 Innovation Markets and Innovation Spaces
3.5 Analysis of the Case Law
4 Commission Analysis of the Anti-competitive Effects of Mergers in the High-Tech Sector
4.1 Perpetual Innovation Preventing Its Reduction and Coordinated Effects
4.2 Promising Innovator Able to Eliminate a Significant Competitive Force
4.3 Role of IPR in Promoting Innovation
4.4 (Questionable) Correlation Between Future Revenue Streams and Future Innovation
4.5 Elimination of a Potential Innovation Partner
4.6 State as a Guarantor of Innovation
5 Merger Efficiency: A Losing Game
5.1 Efficiency Gains: The Raison d’Être of Mergers
5.2 Commission’s Framework for Analysis of Efficiencies
5.3 Commission’s Analysis of Efficiencies Based on Its Case Law
6 Conclusion
Appendix—Summary Table of the Analysed European Commission Merger Cases in High-Technology Industries
References
Innovation as a Competitive Constraint on Online Platforms in European Competition Law: The Industry Life Cycle and Dominant Designs in Digital Markets
1 Introduction
2 Market Power and Innovation in European Competition Law
2.1 Static Efficiencies v Dynamic Efficiencies
2.2 Determining Market Power
2.3 Innovation Constraining Market Power
3 Dominant Designs in Online Platforms
3.1 The Industry Life Cycle and Dominant Designs
3.2 Determining the Emergence of a Dominant Design
4 Implications for European Competition Law
4.1 Dominant Designs in Abuse of Dominance Cases
4.2 Dominant Designs in Merger Control Cases
5 Conclusion
References
Part VI: General and Global Perspectives
Rules and Nudging as Code: Is This the Future for Legal Drafting Activities?
1 Introduction
2 No Country for Old Men: The Need for New Law-Making
2.1 It’s a New e-Day
2.2 Mind the Gap
3 Terminator 3: The Rise of the Machines
3.1 Desperately Seeking for Better Legislation
3.2 A Law for All Seasons: The Rule as Code Project
3.3 Machine-Consumable Experiences
3.4 To Operationalize Machine-Consumable Legislation and RaC
3.5 Nudging 2.0
4 The Good, the Bad and the Ugly: Advantages, Challenges and Pitfalls of Machine-Consumable Legislation
4.1 Goodfellas—The Benefits
4.2 Cape Fear—The Costs and Risks
5 The Future Is Here (and Should be Politically and Legally Decided)—Final Remarks
References
Digital Transformation as a Reshaper of Global Trade Law
1 Introduction
2 Digital Transformation as a Reshaper of Trade
3 Digital Transformation as a Reshaper of Global Trade Regulation
3.1 Adaptation of the Multilateral Trade Regime
3.2 Reshaping Trade Law Through Preferential Agreements
4 The Dynamic Landscape of Digital Trade Law: Concluding Remarks and Outlook
References
Safeguarding Peace and Human Wellbeing for Future Generations—Do We Need a New UN Convention?
1 Introduction
2 The Different Ramifications of Governance
3 Level of Governance
4 Type of Obligation
4.1 Self-regulation
4.2 Economic Incentives
4.3 Nudging
4.4 Legal Norms
5 New Agreement Versus Application of Already Existing Rules and Norms
6 Conclusions
References
Part VII: Specific Sectors
Digitalisation of Banking and the Consumer Protection: The Regulation of Unauthorised Payments from the Perspective of Institutional Law and Economics
1 Introduction
2 The Unauthorised Payment Case and the Reform of the Payment Services Framework
3 The Incompleteness of Law Hypothesis and Different Modes of Governance
4 Courts Versus Regulators: The Unauthorised Payment in the UK
5 Conclusion
References
Regulation of Digital Agriculture—A Law and Economics Perspective
1 Digital Transformation and Sustainability Transition of Agriculture
2 Innovation-Friendly Regulation
3 Analyzing the Regulation of Digital Agriculture Through the Technological Innovation Systems Framework
3.1 Actors, Networks and Institutions in the Innovation System
3.2 Analysis of Functional Dynamics
4 Conclusions
References
Index