Document Type
Article
Publication Date
2019
Abstract
Regulatory arbitrage refers to structuring activity to take advantage of gaps or differences in regulations or laws. Examples include Facebook modifying its terms and conditions to reduce the exposure of its user data to strict European privacy laws, and Uber and other platform companies organizing their affairs to categorize workers as non-employees. This essay explores the constraints and limits on regulatory arbitrage through the lens of the technology industry, known for its adaptiveness and access to strategic resources. Specifically, the essay explores social license and the bundling of laws and resources as constraining forces on regulatory arbitrage, and the legal mismatch that can arise from new business models and innovations as a key area in which the limits of regulatory arbitrage can be observed.
Keywords
regulatory arbitrage, technology, innovation, regulation, competition, social license, social contract, social responsibility, bundling, innovation cluster, regulatory entrepreneurship
Publication Title
European Business Organization Law Review
Repository Citation
Pollman, Elizabeth, "Tech, Regulatory Arbitrage, and Limits" (2019). All Faculty Scholarship. 2567.
https://scholarship.law.upenn.edu/faculty_scholarship/2567
Included in
Business Organizations Law Commons, Law and Economics Commons, Technology and Innovation Commons
Publication Citation
20 Eur. Bus. Org. L. Rev. 567 (2019)