miércoles, 6 de marzo de 2019

Algorithm transparency regulation

Europe has become the greatest Silicon´s Valley regulator. The Digital Single Market Strategy which started its implementation in 2015 has contributed to slash the fragmentation of the digital rules in Europe, and this achievement has been reached mainly through the definition of common rules for online businesses. As the main digital businesses in the world are located in Silicon´s Valley, the main outcome of the Digital Single Market is thirty new regulations which will have impact in the GAFA´s business models. 

And the impact of the new EU regulations will be global, not reduced to Europe. Now, the GAFA´s could threat with the abandonment of EU markets and how the rules stifle innovation, but its the result of their success in their lobby activities in Washington. As Washington has renounced to the regulation of the GAFAs, the EU has filled the void in a manner less beneficious to their interests. This is a lesson the have learned and since one year ago we have seen a less aggressive approach to regulation form the GAFAs: You cannot avoid indefinitely regulation so it is better to lobby for a friendly one than for not having any one at all.

One of the main worries of firms, consumers and citizens is the transparency of the algorithms at the core of GAFAs and other online platforms. There's not a neo luddite movement strong enough which directly calls for not using platforms and the platform dividend is recognised by its users. However, there´s a strong desire for the tools that allow a bigger knowledge on their algorithms and a validation of its fair and ethical design.

The Digital Single Market has made some progress also in the area of regulated algorithm transparency. On one hand, the right to explanation included in the Article 22 of the GDPR obligues platform to have at hand an explanation on how personal data affects the conclusion achieved by an algorithm. On the other hand, the P2B relationships regulation introduces the obligation to disclose the main parameters the platforms use to rank goods and services on their site.

However, there are still many other kind of algorithms not cover by the obligations of transparency included in the above EU regulations. Some of them as important as the work allocation algorithms used by Uber or Mechanical Turk, for instance. Even if we manage to regulate a new handful of types there would be more kind of algorithms unregulated than regulated. Therefore, the solution should be a flexible and holistic regulation, but soft enough for not stifling innovation.

One possible solution is taken the approach follow for the regulation of the pharmaceutical industry, with the creation of protocols and guidelines for the development of algorithms and agencies that may analise their design and the fulfillment of them within the respect of the commercial secret. The debate may be if a unique agency would be enough for the regulation of such as transversal matter as algorithms or we would need specialised agencies for each economic sector.

But all of this maybe the work for the renewal of the renewal of the digital single market strtaegy.

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