حقوق فناوریهای نوین (Mar 2025)

Analyzing Macro-Regulation Strategies of the Digital Economy in Selected Countries and Providing Macro Components of Regulation for Iran

  • Fatemeh Kasaei Najafi ,
  • Afsaneh Vahedian,
  • Hassan Yeganeh

DOI
https://doi.org/10.22133/mtlj.2024.414120.1243
Journal volume & issue
Vol. 6, no. 11
pp. 159 – 181

Abstract

Read online

Nowadays, regulating the digital economy is becoming one of the most important priorities of most countries. In this regard, governments and legislators play a key role in encouraging digital innovation and motivating the development of digital technologies for the benefit of society. They can promote broad public and consumer interests and limit any potential unintended negative consequences of these developments by providing general rules that reflect societal values and priorities.The purpose of this qualitative research is to analyze the macro-regulation strategies of the digital economy of the European Union and the selected countries of China, and Saudi Arabia , and presenting macro components of digital economy regulation for the country using thematic analysis method. Considering that the European Union and these countries are seeking to formulate and implement a comprehensive program with the participation of others to regulate and control the digital economy and try to accept technological advances in all sectors of social and economic life and its regulation should take steps to protect the rights of users, as a result of this research, it is suggested that a comprehensive and executive strategy should be explained in Iran by all departments and stakeholders. 1. Introduction The widespread impacts of digital transformations and the subsequent digital economy have presented challenges for policymakers. This has necessitated the development and implementation of strategies to effectively address these challenges. Digital economy policies and strategies are interconnected across various areas and require a comprehensive and coordinated approach. Typically, digital strategies are given the highest priority and objectives in a country’s digital policy, with the goal of shaping the digital transformation of the economy and society within that country (OECD, 2022). However, the significant development and rapid growth of the digital economy have raised concerns. Technologies and large platforms have become so powerful that they have had a negative impact on some businesses and consumers. This has led to calls for increased regulatory oversight of major technology platforms, focusing on their market power, use of personal data, and responsibility for the growing harm caused by online activities. While regulators around the world are seeking to address similar concerns, their approaches differ in major economies such as the European Union, China, and Saudi Arabia. Understanding how and where regulators should intervene to develop a coherent digital strategy in markets is crucial (Murray, 2021, p.2). Given that in recent years the European Union, Saudi Arabia, and China have been recognized as leaders in the digital economy, this paper examines the regulatory strategies for the digital economy in these countries. The selection of these countries and the European Union has been made with consideration of their regulatory approaches. A review of the regulatory approaches in these countries (Section 1) reveals that China, with its government-centered approach, has many similarities to our country. On the other hand, the European Union’s regulations, due to their global impact, significantly influence the performance of countries in the digital economy, particularly regarding digital platforms. Saudi Arabia also shares similarities with our country in terms of its Islamic civil law structure and as a neighboring country. Therefore, examining the regulatory frameworks of these three regions and analyzing their strategies in the digital economy will be valuable for formulating and adopting regulatory strategies for the digital economy in our country. Thus, this paper aims to identify the key elements of digital economy regulation for Iran by reviewing the regulatory strategies of these countries and understanding their priorities in regulating this field. The first section of this article examines and reviews the macro-regulatory approaches to the digital economy in the European Union and selected countries. The second section presents the digital economy, its dimensions, and the regulatory components associated with it. The third section focuses on the digital economy strategies of the European Union, China, and Saudi Arabia, while also highlighting the most important laws related to the digital economy in these regions. The fourth section explores the state of digital economy regulation in Iran. Finally, the fifth section analyzes the regulatory strategies of the studied countries using the thematic analysis method, leveraging the results to propose macro-regulatory components for Iran. 2. Research background The rapid growth of the digital economy and, consequently, digital platforms has created numerous challenges worldwide, particularly in Iran. One of the major challenges in developing the digital economy in Iran is the lack of a clear vision and well-defined strategies within the framework of a comprehensive digital economy document. Such a document is needed to address various dimensions, including legal and regulatory frameworks, privacy and data security, workforce development and employment creation, social impacts, infrastructure provision, and enhancing technical capabilities, thereby clarifying governance policies and programs. Since the Fourth Development Plan, a knowledge-based economy and innovation have been top priorities for policymakers. In 2019, the Ministry of Communications and Information Technology launched the "Digital Iran" project on a small scale. However, a comprehensive and widely accepted document for the development of the digital economy has not yet been created. A comparison of the efforts of numerous developed and developing countries reveals that over the past decade, these countries have established national digital transformation documents and digital economy strategies. These strategies outline roadmaps to help them achieve their long-term goals. Given the major challenge and other barriers to the development of the digital economy, along with the increasing relevance of digital economy issues across societies and their multifaceted impact on citizens' lives, this article aims to address pre-defined research questions to align the content with the article's objectives. The research questions are as follows: What is the significance of regulating the digital economy? What macro-strategies have selected countries adopted for regulating the digital economy? What themes can be inferred from the comparative studies of selected countries, based on which domains (components)? What type of orientations do these domains suggest for regulating the digital economy in Iran? 3. Methodology The purpose of this research is to compare digital economy regulation in selected countries and propose macro-regulatory components for Iran’s digital economy. The methodology of this study involves a comparative analysis with a descriptive-explanatory approach based on current content. A qualitative strategy has been used, with thematic analysis (Alvani et al., 2023) selected for comparing strategies across countries. The main source of information for studying the selected countries is official documents published by their legal institutions in the field of the digital economy. The studies focused on topics, dimensions, and strategies related to the digital economy based on these documents. The thematic analysis approach connects the findings from studying countries’ digital economy regulations with existing topics and dimensions in the digital economy. The thematic analysis process involved the following steps: Studying and examining selected countries. Extracting the digital economy strategies of these countries from their official documents. Deriving initial summaries and themes for each strategy. Reviewing, consolidating, and regrouping these initial themes to form broader secondary themes. Combining secondary themes to develop macro-regulatory components for Iran's digital economy. The countries studied in this article include the European Union, China, and Saudi Arabia. These countries were selected based on their macro-regulatory approaches to the digital economy and criteria such as developmental status, legal similarities (in ICT regulations), and regional proximity to Iran, as elaborated in subsequent sections. 4. Results and Discussion Technological advancements and the rapid growth of the digital economy have brought about significant changes in how countries regulate this sector. Many nations are struggling to quickly adopt the digital economy, which hinders them from implementing advanced regulatory measures. Therefore, it is crucial to analyze and examine the macro-regulatory strategies of selected countries and subsequently, develop strategies for regulating the digital economy in Iran in order to keep up with its rapid development. In general, most countries have developed structured, integrated, and measurable strategies to achieve a secure and sustainable digital economy and promote its development across all sectors. The key to their success has been the comprehensive involvement of all national stakeholders in their programs. Based on the findings of this study, achieving a digital economy aligned with Iran's development goals requires a comprehensive plan. This plan should include objectives, policies, strategies, and principles of the digital economy based on the 10 proposed macro-components, as well as regulations developed with the participation and cooperation of all sectors and stakeholders, especially the private sector and civil society. A program must be designed to ensure feasibility across all sectors and evaluability through specific indicators. Additionally, the strategies must align with the country’s development vision as outlined in its development plans. Currently, the Ministry of Communications and Information Technology has been assigned the responsibility for developing this strategy within the framework of the Seventh Development Plan. 5. Conclusions and Future Research The study highlights the increasing need for strategies and robust regulatory frameworks to tackle the challenges presented by the rapid growth of the digital economy. Future research should be concentrated on the following: Developing a detailed roadmap for implementing the proposed macro-regulatory components in Iran. Establishing evaluation mechanisms with clear indicators to monitor the effectiveness of digital economy policies. Investigating the role of emerging technologies (e.g., AI, blockchain) in shaping regulatory strategies. 4. Conducting comparative studies with other countries to further refine Iran’s digital economy strategies. This approach ensures that Iran’s regulatory framework remains adaptive, inclusive, and in line with global best practices, paving the way for sustainable digital transformation

Keywords