ABSTRACT
This chapter explores the primary challenges and dilemmas posed by the rapid advancement of the digital economy. It examines the economic, social, regulatory and ethical tensions arising from digital transformation, highlighting both systemic risks and areas of uncertainty. Central issues discussed include the monopolistic tendencies of global tech giants, market concentration and asymmetries in accessing data and digital infrastructure, which may hinder fair competition and innovation.
The chapter further investigates the socioeconomic consequences of digitalization, such as rising income inequalities, the precarization of labor through platform work and the risk of digital exclusion. It underscores the growing power of data as a production factor, raising complex questions about ownership, privacy, surveillance and algorithmic governance. The regulatory response to these issues – particularly in areas like antitrust law, data protection (e.g., GDPR) and taxation of digital services – is presented as both necessary and evolving.
In addition, the chapter addresses geopolitical tensions in digital sovereignty, global competition for technological leadership and the environmental footprint of ICT development. Overall, it calls for a balanced and inclusive policy approach that safeguards democratic values, ensures equitable access and fosters sustainable innovation in the digital age.
