Global Regulatory Challenges
Panelist Greta Lundeberg, Vice President and Head of Government and Policy Advocacy for the Americas at Ericsson, discussed how multinational tech and telecom companies must navigate diverse regulatory environments worldwide and adapt to varying standards and regulations across different markets. These different standards can sometimes conflict with each other, impede innovation and scalability, and increase costs for regulated businesses and consumers alike. Lundeberg also noted that governments often struggle to balance their national security priorities with policies that foster global business investment, adding another layer of complexity.
Geopolitical Shifts
Geopolitical shifts and evolving global power dynamics also are creating significant challenges for international tech and telecom companies. For example, in Latin America, Hogan Lovells partner Cecilia Stahlhut Espinosa and senior counsel Charles Mathias discussed how Mexico’s upcoming elections could impact tech and telecom policies, potentially reshaping regulatory frameworks for AI development, cybersecurity, and data privacy regulations in Mexico and the broader region. Similarly, Sheba Chacko, Head of Global Regulation for BT Group, discussed the potential impact of recent European elections in Denmark and France on competition law enforcement and telecommunications policies. The departure of senior European Commission officials who advocated for stricter regulation of U.S. tech companies may lead to more measured enforcement of pivotal digital regulations, including the Digital Services Act (DSA), EU Artificial Intelligence (AI) Act, and Digital Markets Act (DMA). As electoral tumult spreads around the globe, companies will face an increasingly complex landscape where political changes in one country or region can have far-reaching effects on their global operations and strategies, requiring them to adapt to shifting regulatory environments.
The geopolitical shifts affecting tech and telecom regulation do not have to be seismic to be consequential. At separate points during the day, Robert Gardener, Director of Government Affairs at Hogan Lovells, and Jonathan Tan, First Secretary Technology Policy at the British Embassy, offered perspectives from London. Gardener noted that the UK’s tech and telecom policy agenda has not significantly changed since the Labour Party regained control of Parliament. However, the new government is more energized to advance this agenda after years in opposition, putting renewed focus on policies to promote economic growth and innovation in these sectors. Later, Tan echoed Gardener's assessment of the UK policy landscape, emphasizing that tech and telecom are high priorities for the new government.
During his panel, Gardener also highlighted how the pace of innovation is outstripping the government’s ability to regulate effectively, so early engagement between businesses and government is critical to achieve business goals in a manner that works for both. This situation underscores the complex interplay between political transitions, regulatory ambitions, and the need for industry collaboration to shape effective tech and telecom policies.
Domestic political shifts and their effects on Global Online Services Regulation
In the Global Online Services Regulation panel, experts focused on how shifting power dynamics and election outcomes impact tech and telecom industries domestically. Adam Kovacevich, Founder and CEO of Chamber of Progress, compared the changing relationship between government and technology in the United States to a marriage, describing the initial “honeymoon stage” where policymakers eagerly promoted tech innovation, followed by a “divorce” rooted in fear, skepticism, and stringent tech policies after 2016.
Kevin Ryan, Flex Association’s Head of Public Policy, highlighted the app-based ride-share and delivery industry's multifaceted impact beyond technology. In 2023, Flex conducted its first economic impact report, revealing significant contributions to the U.S. economy. The study showed that the industry contributed over $212 billion annually and generated an additional $32 billion in revenue for local businesses such as restaurants and grocers. The report also demonstrated the industry’s extensive reach, providing flexible earning opportunities to 7.3 million app-based workers and facilitating 4.3 billion rides and deliveries across all 50 states. Despite this growth, Ryan emphasized the industry’s youth and potential for further expansion. He stressed the importance of viewing an industry’s impact holistically in future tech policy and regulation discussions as regulatory regimes mature.
Christianna Barnhart of the Entertainment Software Association (ESA) highlighted the generally bipartisan nature of tech regulation of the U.S. video game industry, while noting that the two parties occasionally differ in their approaches to implementing online and child safety measures. Barnhart predicted that U.S. regulations would likely mirror European approaches like the DSA, DMA, and AI Act, regardless of which party is in power. This prediction underscored the complex political landscape the video game industry must navigate, balancing innovation with evolving regulatory expectations across party lines.
Gina Vetere, ESA’s Senior Vice President and General Counsel emphasized the need for balanced regulation regardless of which political party holds power. She stressed the importance of preventing overregulation of AI while ensuring that the necessary safeguards are in place to promote innovation, creativity, and safety.
Key Takeaways
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As new regulatory regimes take shape around the world, global companies must be adept at navigating multiple, often competing compliance obligations across jurisdictions.
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Early engagement with regulators is critical for developing a comprehensive, effective narrative about emerging technologies and their potential impacts on society.
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Industry must seek ways to partner with government to ensure appropriate safeguards without stifling innovation.
Authored by Ari Fitzgerald, John Castle, Khaosara Akapolawal, and Ambia Harper.
