Regulation Tomorrow: What Happens When Technology is Faster than the Law?

29 Pages Posted: 7 Sep 2016 Last revised: 27 May 2018

See all articles by Mark Fenwick

Mark Fenwick

Kyushu University - Graduate School of Law

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law

Erik P. M. Vermeulen

Tilburg University - Department of Business Law; Philips Lighting - Legal Department; Tilburg Law and Economics Center (TILEC); European Corporate Governance Institute (ECGI); Kyushu University - Graduate School of Law

Multiple version iconThere are 2 versions of this paper

Date Written: 2017

Abstract

In an age of constant, complex and disruptive technological innovation, knowing what, when, and how to structure regulatory interventions has become more difficult. Regulators find themselves in a situation where they believe they must opt for either reckless action (regulation without sufficient facts) or paralysis (doing nothing). Inevitably in such a case, caution tends to trump risk. But such caution merely functions to reinforce the status quo and makes it harder for new technologies to reach the market in a timely or efficient manner. The solution: lawmaking and regulatory design needs to become more proactive, dynamic, and responsive. So how can regulators actually achieve these goals? What can regulators do to promote innovation and offer better opportunities to people wanting to build a new business around a disruptive technology or simply enjoy the benefits of a disruptive new technology as a consumer?

Keywords: Airbnb, Artificial Intelligence, Big Data, Drones, FinTech, Principles, Regulation, Regulatory Sandbox, Robotics, Rules, Uber, Technology Paralysis, Disruptive Technology, Regulatory Design

JEL Classification: E22, G2, K2, K22, K32, K40, L26, L43, L51, O3, O30, O31, O33

Suggested Citation

Fenwick, Mark and Kaal, Wulf A. and Vermeulen, Erik P.M., Regulation Tomorrow: What Happens When Technology is Faster than the Law? (2017). American University Business Law Review, Vol. 6, No. 3, 2017; Lex Research Topics in Corporate Law & Economics Working Paper No. 2016-8; U of St. Thomas (Minnesota) Legal Studies Research Paper No. 16-23; TILEC Discussion Paper No. 2016-024. Available at SSRN: https://ssrn.com/abstract=2834531 or http://dx.doi.org/10.2139/ssrn.2834531

Mark Fenwick

Kyushu University - Graduate School of Law ( email )

6-19-1 Hakozaki,
Fukuoka
Japan

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law ( email )

MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States

Erik P.M. Vermeulen (Contact Author)

Tilburg University - Department of Business Law ( email )

Philips Lighting - Legal Department ( email )

Amstelplein 2
Amsterdam
Netherlands

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Kyushu University - Graduate School of Law ( email )

6-19-1, Hakozaki, Higashiku
Fukuoka, 812-8581
Japan

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