ICT Based Innovation and Existing Regulation: focused on the Taxi-like Uber Service in Light of Jurisprudence
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Innovations in ICT frequently cause conflict with existing regulations. Some say that the regulations should be loosened or even discarded to avoid discouraging inventors. Innovations often have positive economic and social effects and are therefore desirable, but may also entail unanticipated risks; for example, at an early stage of development, electronic commerce had trouble with possibilities of leaks, abuses and manipulation of consumer’s data. Development of technically-based activities increases uncertainty at the same time.1) This uncertainty reveals risks that can affect individuals and society as a whole. Freedom to innovate may also infringe on other peoples’ right to freedom if it may be threatened by the innovation. In addition, the consequences and dangers of innovation are often not easy to predict. A society that encourages innovation without considering its possible side-effects could suffer from them despite the advantages that innovations provide. This paper is organized as follows. Section II reviews the relation between innovation and regulation, and reveals that the relationship is not a trade-off but is in need of some fine-tuning. Section III presents a comparison of the concept of the Uber service and the existing taxi regulations, then Section IV discusses several legal considerations referring to Germany as a guide. Finally, Section V examines the implications of Uber service on the relationship between innovation and regulation.
Abstract
Innovations in ICT frequently cause conflict with existing regulations. Some say that the regulations should be loosened or even discarded to avoid discouraging inventors. Innovations often have positive economic and social effects and are therefore desirable, but may also entail unanticipated risks; for example, at an early stage of development, electronic commerce had trouble with possibilities of leaks, abuses and manipulation of consumer’s data. Development of technically-based activities increases uncertainty at the same time.1) This uncertainty reveals risks that can affect individuals and society as a whole. Freedom to innovate may also infringe on other peoples’ right to freedom if it may be threatened by the innovation. In addition, the consequences and dangers of innovation are often not easy to predict. A society that encourages innovation without considering its possible side-effects could suffer from them despite the advantages that innovations provide. This paper is organized as follows. Section II reviews the relation between innovation and regulation, and reveals that the relationship is not a trade-off but is in need of some fine-tuning. Section III presents a comparison of the concept of the Uber service and the existing taxi regulations, then Section IV discusses several legal considerations referring to Germany as a guide. Finally, Section V examines the implications of Uber service on the relationship between innovation and regulation.
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