The Impact of Digital Technologies on Leadership in Global Processes: from Platforms to Markets?

• Main Author: I. V. Danilin
• Format: Article
• Language: English
• Published: MGIMO University Press 2020-03-01
• Series: Vestnik MGIMO-Universiteta
• Subjects: internet platforms; digital technologies; global processes; influence and dominance
• Online Access: https://www.vestnik.mgimo.ru/jour/article/view/1274

Discussions on the impact of digital technologies on national and global processes are rising. Among important issues is the role of large Internet platforms (Facebook, Google, Alibaba, etc.) - key players of the digital markets and in the digital innovations – in producing global leadership / dominance. The article argues, that on the economy side existing USA-China duopoly on the platform markets creates asymmetric advantages for both nations resulting (in future) in unprecedented influence on global processes (up to “digital colonialism”). It is doubtful that potential competitors from third nations may ever destroy this duopoly. Also, the information functions of the platforms are reviewed as resource for global leadership. Noting the evolution of assessments (from techno-optimistic views of platforms as engines of democracy to alarmist views of their role as a “backdoor” for the opponents and adversaries) we accent platform`s growing information impact on the global processes (digital diplomacy, etc.). However, here the USA-PRC duopoly is also actual. Dilemma of alternative solutions to boost the influence of third nations in the new digital, platform economy still may be resolved. Since data is the key resource for the digital markets and platforms, formation of data regulatory regimes appears to be an asymmetric solution. The experience of the EU with its GDPR and other efforts to form new data/digital regimes may serve as a model. Exploiting its` large data market as a competitive factor, the EU may neutralize part of the advantages of stronger actors and orient global platforms towards a more acceptable strategy. However, regulatory practices should be complemented by the development of digital technologies, as well as regional- or national-level platforms. A serious challenge also lies in achieving needed market scale (in order to influence global platforms) and – in the future – in competition of jurisdictions.