The Digital Regulation Cooperation Forum will tackle complex areas such as encryption and algorithms
Joining forces amid increasing complexity: As the digital economy becomes a bigger part of our lives, it also raises increasingly complex issues for regulators. It has become more difficult to see a privacy problem, or a disinformation problem, in isolation from a competition problem. In the UK, this realisation led the Competition and Markets Authority (CMA), the Information Commissioner’s Office (ICO) and Ofcom to form the Digital Regulation Cooperation Forum (DRCF) in July 2020. This week the DRCF presented its first annual work plan.
Algorithms, and yet more algorithms: Perhaps the most striking thing about these three regulators recently has been the focus on algorithms. The CMA published a paper on the potential effects of algorithms on competition and consumers in January 2021. The ICO and Ofcom explored the role of AI in decision making and in online content moderation, respectively. This year, the DRCF will explore ways to streamline common practical approaches in different regulatory regimes, and look to develop solutions for industry (e.g. impact assessments for algorithmic systems). By doing so, the DRCF aims to reduce regulatory duplication and engage with stakeholders, through roundtables (in Q3 2021) and a report on shared regulatory tools (due in Q4 2021).
Solving the encryption riddle: The DRCF also wants to delve into the notoriously controversial area of end-to-end encryption. For years, regulators and industry have been stuck on the seemingly unsolvable dilemma of how to guarantee privacy without compromising on transparency and oversight on how some services are used. The DCRF notes encryption might also affect interoperability and users’ ability to switch between different services. The DRCF will engage with stakeholders and identify how it might tackle this complex area of regulation.
Greater cooperation could be hampered by the pandemic: More broadly, the DRCF will seek to build skills and capabilities of its own members. In doing so, the DRCF is proposing to develop a ‘shared centre of excellence’ (a hub for specialist expertise and resource sharing), and establish physically collocated teams across the DRCF members. It remains to be seen how this will happen in practice, or how effective it will be at least as the pandemic continues.
