Self-regulatory trajectories in the shadow of public power: Resolving digital dilemmas in Europe and the United States

Abstract

Although industry self-regulation has developed into a preferred regulatory strategy for the digital economy, self-regulatory solutions adopted in the U.S. and the European Union differ considerably. We argue that variation in the shadow of public power - the public sector tools employed to induce industry collective action - sets the two on distinct self-regulatory trajectories. Legalistic self-regulation dominates in the U.S. and coordinated self-regulation in Europe. Expectations derived from the model are evaluated in case studies of online content regulation and personal data privacy protection.