In 2024, regulators and courts around the world will demonstrate that tech exceptionalism is no longer acceptable. The era of Big Tech operating with little to no consequences is coming to an end, as data protection authorities use new and existing legislation to hold these companies accountable. In the United States, regulators have already started taking action against Big Tech, repurposing existing laws to address privacy breaches and deceptive practices. In France, the CNIL has been fining companies for non-compliance and will continue to take legal steps to ensure that no company is above the law. From antitrust actions to consumer rights and intellectual property lawsuits, regulators are making it clear that technology must adhere to the same rules and regulations as any other industry. The regulatory void that Big Tech has long enjoyed is closing, and we can expect to see the full range of legal tools being used to tackle the real-life harms caused by technology, including AI.
Regulators in the United States
In the United States, regulators have been expanding consumer protection regulations to address the growing concerns over Big Tech companies’ actions. Despite the absence of federal privacy legislation, regulators have been repurposing existing laws and rules to hold these companies accountable. One prominent regulator in this space is the US Federal Trade Commission (FTC), which has been actively working to protect consumer rights and personal data. In 2023, the FTC tackled the issue of dark patterns, deceptive design practices used by apps and websites, with a massive half-billion-dollar fine against Fortnite maker Epic Games. The FTC also took action against Amazon for significant breaches of privacy through devices like Alexa and Ring doorbells. The regulatory momentum is expected to continue in 2024, with the FTC planning to introduce rules governing commercial surveillance and digital security.
Regulators in other parts of the world
Regulators in other parts of the world have also been stepping up their efforts to rein in Big Tech. In France, the CNIL (French Data Protection Authority) imposed a record €20 million fine on Clearview AI for failing to comply with an earlier ruling to stop collecting and using data of individuals in French territory. This strong action by the CNIL showcases the determination of regulators to ensure that no company is above the law. In 2024, we can expect other regulators, inspired by the CNIL’s example, to take more radical legal steps to hold Big Tech accountable for their actions.
Global AI regulation
The call for global AI regulation has gained traction in recent years, with OpenAI’s CEO, Sam Altman, advocating for it in 2023. However, the actual implementation of regulation has faced challenges. While some argue for a pause on AI innovation to allow for regulation to catch up, regulators have found ways to apply existing regulations to control AI technologies. For example, the Italian Data Protection Authority (DPA) invoked existing regulations to temporarily stop the use of ChatGPT in their territory. Ongoing intellectual property lawsuits, such as the one against Microsoft, may also lead to turbulence in the business model of generative AI in 2024.
One significant development in AI regulation is the EU AI Act. This legislation aims to create a comprehensive regulatory framework for AI systems in the European Union. If enacted, the EU AI Act will have far-reaching implications for both AI developers and users. It seeks to ensure the ethical use of AI and establish accountability mechanisms for AI systems. The impact of the EU AI Act is expected to shape the global AI regulatory landscape.
Implications on society and markets
Regulatory actions on Big Tech have far-reaching implications for both society and markets. Antitrust actions launched in the United States and the European Union in 2023 have called into question Google’s dominance in the ad tech market. This has the potential to disrupt the programmatic advertising model that has shaped the internet as we know it today. The outcome of these antitrust actions in 2024 will have significant consequences for the advertising industry and the overall digital ecosystem.
Another area of concern is the potential effects on the programmatic advertising model. With increased scrutiny on data privacy and consumer rights, the programmatic advertising model may face challenges in its current form. As regulators tighten regulations and individuals become more aware of their rights, the advertising industry will need to adapt to ensure compliance and regain consumer trust.
End of regulatory void for Big Tech
The regulatory void that Big Tech has enjoyed for years is coming to an end. With the development of new laws and regulations, as well as the application of existing ones, regulators are determined to address the harms caused by technology. In addition to new legislation like the EU AI Act, the Digital Services Act, and the Digital Markets Act in the EU, courts and regulators will continue to use existing legal tools to tackle technology harms.
These legal tools span various fields, including human rights and civil liberties law, competition law, consumer rights law, intellectual property law, defamation law, tort law, and employment law. Regulators will leverage these legal frameworks to hold Big Tech accountable for their actions and safeguard individuals and society from the negative impacts of technology.
Courts and regulators targeting individual impacts
Courts and regulators not only focus on addressing individual technology harms, but they are also actively considering the impacts on society, markets, and businesses. By assessing the broader implications of technology on these aspects, regulators can better understand the potential risks and benefits. This understanding guides the development of effective regulatory frameworks that balance innovation and protection.
Regulation’s impact on AI
Regulation has a significant impact on the development and deployment of AI technologies. Both current and potential regulations affect the AI landscape. The implementation of regulations ensures that AI systems are developed and used responsibly, with a focus on mitigating potential harms and ensuring accountability.
One specific area where regulations have a profound effect is intellectual property. Ongoing lawsuits, such as the case against Microsoft for allegedly using code created by others without permission, have the potential to disrupt the business models of generative AI technologies. The outcome of these lawsuits in 2024 will shape the future of AI development and intellectual property rights in the field.
Conclusion
The regulatory landscape is evolving rapidly as old rules are applied to address new problems in the technology sector. Regulators around the world are catching up with Big Tech, utilizing existing laws and regulations to tackle issues related to consumer protection, privacy, and the societal impact of AI. As we move into 2024, it is clear that the lawless, Wild West era of AI and technology is coming to an end. With the application of old rules to these new challenges, regulators are paving the way for a more accountable and responsible technology industry.
