Transnational Governance of the Digital Economy: Legal Approaches to Regulating Big Tech Companies and Ensuring Global Compliance

Abstract

The rapid rise of Big Tech companies and the growth of the digital economy have prompted an urgent need for effective governance frameworks to address the complex legal, ethical, and regulatory challenges associated with their global operations. This article explores the various dimensions of regulating Big Tech, focusing on transnational governance, legal frameworks, and the evolving role of international cooperation in ensuring global compliance. The article discusses the insufficiencies of national regulatory approaches in governing the digital economy, highlighting the challenges of cross-border data flows, differing national regulations, and jurisdictional conflicts. It further examines the role of international organizations in shaping global regulatory standards, with a focus on efforts to harmonize digital economy regulations and the need for multilateral cooperation. Key legal and ethical concerns are also addressed, including issues of accountability and liability, particularly in relation to the increasing use of AI and automation in decision-making processes. The ethical challenges of balancing innovation with privacy and the role of governments in regulating free speech and content moderation are explored. The article also highlights the tensions between regulation and the protection of human rights, such as freedom of expression versus censorship. Case studies of successful and failed regulatory initiatives are used to illustrate the challenges and complexities of creating effective legal frameworks in this rapidly evolving sector. The article concludes with a discussion of the future directions of global digital economy regulation, emphasizing the need for ongoing international cooperation, regulatory innovation, and a careful balance of legal, economic, and ethical concerns.