Articles

By embracing digital transformation, policymakers can create more efficient, transparent, and fair tax systems that benefit both governments and taxpayers.

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The digitalisation of tax administration is a hot topic in the EU, with significant implications for VAT collection. Our recent study explores how the level of e-government, measured by the E-Government Development Index (EGDI), impacts VAT evasion, specifically the VAT gap, across EU Member States from 2003 to 2020. The findings reveal that higher levels of digitalisation in tax administration significantly reduce the VAT gap, highlighting the importance of digital transformation in public services. Why is this research important to policymakers? Here are three key elements that resonate with their needs: Enhanced Efficiency and Transparency: Digitalisation improves the efficiency of tax collection by reducing information asymmetry between taxpayers and tax authorities. This exchange leads to better compliance and less tax evasion. Policymakers can leverage these insights to advocate for more robust digital infrastructure in tax administration, ensuring that tax systems are transparent and efficient. Tailored Policy Measures: The study shows that the impact of digitalisation varies between original and new EU Member States. For instance, while digitalisation and corruption perception significantly affect the VAT gap in the original Member States, new Member States are more influenced by household consumption and standard VAT rates. This differentiation suggests that policymakers should tailor their digitalisation strategies to the specific needs and contexts of their countries Combatting Tax Evasion: The research underscores the role of digital tools in combatting VAT fraud, including carousel fraud. By implementing measures such as electronic invoicing and real-time transaction reporting, policymakers can significantly reduce opportunities for tax evasion. These tools not only enhance revenue collection but also build public trust in the tax system. The findings suggest that investing in digitalisation is not just a technological upgrade but a strategic move to enhance tax compliance and reduce evasion. Policymakers should focus on: Promoting digital literacy among taxpayers to ensure they can effectively use e-government services. Implementing comprehensive digital reporting systems to track transactions and detect fraud Customising digitalisation efforts…

How are deepfakes regulated by the AI Act? What are the main shortcomings of the AI Act in regard to regulating deepfakes?

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The EU finally accepted the Artificial Intelligence Act, signaling its commitment to global AI governance. The regulation aims to establish a comprehensive regulatory framework for AI, setting new standards that might serve as a global benchmark in the future. Creating clear and precise rules that would enable the implementation of efficient safeguards for citizens against the manipulative potential of technology was not an easy task, and the EU failed to avoid visible shortcomings. In my study “Deep Fakes and the Artificial Intelligence Act – an Important Signal or a Missed Opportunity?” I raise legitimate questions about the effectiveness of the solutions proposed by the EU in regard to crafting protection against harmful applications of deepfakes. I concentrated on two primary research questions: How are deepfakes regulated by the AI Act? What are the main shortcomings of the AI Act in regard to regulating deepfakes? The EU has taken an important step towards regulating deepfakes, but the proposed solutions are, in my opinion, just a transitional phase. They require clarification, standardization, and, above all, appropriate enforcement. Regulations on deepfakes have not been a priority for the regulatory framework crafted by the EU, but experience with synthetic media teaches us that strict provisions are necessary. Deep fakes can be harmful when misused. We have already experienced that, namely, with attempts to manipulate electoral processes, discrediting politicians, and creating non-consensual pornographic content. These are only selected examples from the entire list of malicious applications. The basis for regulating deepfakes is the protection of citizens against disinformation and a strong focus on strictly political processes. In my opinion, this is a mistake. Statistics on video deep fakes show that non-consensual pornography is a key application, disproportionately targeting women. It contributes not only to the victimization of thousands of female individuals but also to misogyny and deepening gender-based discrimination. Failure to address this issue is, in my opinion, the biggest shortcoming of regulating deepfakes in…

Trust is a critical driver for AI adoption. If people do not trust AI, they will be reluctant to use it, writes Professor Terry Flew.

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There has been a resurgence of interest in recent years in setting policies for digital platforms and the challenges of platform power. It has been estimated that there are over 120 public inquiries taking place across different nation‐states, as well as by supranational entities such as the United Nations and the European Union. Similarly, the current surge in enquiries, reviews and policy statements concerning artificial intelligence (AI), such as the Biden Administration’s Executive Order on Safe Secure and Trustworthy Artificial Intelligence in the U.S., the U.K.’s AI Safety Summit and the EU AI Act, also speak to this desire to put regulatory frameworks in place to steer the future development of digital technologies.  The push for greater nation‐state regulation of digital platforms has occurred in the context of the platformisation of the internet, and the concentration of control over key functions of the digital economy by a relatively small number of global technology corporations. This concentration of power and control is clearly apparent with artificial intelligence, where what the U.K. House of Commons Science, Innovation and Technology Committee referred to as the access to data challenge, with ‘the most powerful AI needs very large datasets, which are held by few organisations’, is paramount  (House of Commons Science, Innovation and Technology Committee, 2023, p. 18). As a result, the extent to which the political of platform governance appears as a direct contest between corporate and governmental power is clearer than was the case in the early years of the open Internet. In my Policy & Internet paper, “Mediated Trust, the Internet and Artificial Intelligence: Ideas, interests, institutions and futures”, I argue that trust is a central part of communication, and communication is central to trust. Moreover, the nature of that connection has intensified in an age of universal and pervasive digital media networks. The push towards nation‐state regulation of digital platforms has come from the intersection of two trust vectors: the…

Can e-participation improve policy processes, or do existing conflicts hinder its potential?

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Involving local communities in political decisions is essential for transparent governance. This involvement is especially important in controversial issues, such as the siting of infrastructure, where a balance must be struck between the collective benefits of projects and the personal costs for nearby residents. However, despite efforts to engage communities, participation processes often lead to protests, loss of trust, and project blockades. This is where e-participation tools can play a significant role. As digital transformation reshapes governance, an increasing number of online platforms are being integrated into traditional participation processes. These platforms aim to make participation more inclusive and transparent by allowing individuals to engage regardless of their location or the time and by fostering a space for clear knowledge exchange. Nonetheless, how effective are communities in accessing these tools, particularly when conflicts are already intense? Can e-participation improve policy processes, or do existing conflicts hinder its potential? Our recent article published in Policy & Internet, titled “Digital Citizen Participation in Policy Conflict and Concord: Evaluation of a Web-Based Planning Tool for Railroad Infrastructure” by Ilana Schröder and Nils C. Bandelow, explores these questions. The research examines the performance of e-participation in both low- and high-conflict settings by focusing on a web-based tool that allows citizens to propose alternative railroad routes. Study participants were asked to use the online tool in a hypothetical scenario characterized as either conflictual or consensual. They then assessed the tool’s ability to promote inclusion, transparency, conflict resolution, and efficiency in the decision-making process. Here are the key findings:  E-Participation Can Enhance Transparency and Mutual Understanding: Participants in both low- and high-conflict scenarios indicated that digital participation tools help enhance transparency in decision-making processes. When used effectively, these tools clarify planning criteria, include local knowledge, and improve mutual understanding among stakeholders. Therefore, e-participation tools can help reduce conflict escalation and facilitate creative solutions to complex issues. Digital Tools Aren’t a One-Size-Fits-All Solution: While digital platforms have…

The emergence of conspiracy theories within petitions is paradoxical: why target these beliefs at the government using an official government channel?

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In an era of increased digitisation, e-petitions have become a popular form of political engagement. However, as the parameters of truth, democracy, false news, and conspiracy are challenged, so too is the original role of parliamentary petitioning. In our article, published in Policy & Internet, my co-author and I argue that the amplification of conspiracy theories shifts the goalposts for e-petitioning in terms of function. Specifically, unlike traditional petitions, they are not primarily aimed at producing policy changes. Instead, they function as social objects that achieve various community outcomes while adhering to petition rules. Signatures on these petitions, although lacking automatic results, signal popularity. Thus, the content of petitions can serve as a platform for airing shared grievances on topics such as immigration, economics, and health—and can even experiment with new forms of communication, such as emojis. As it is known, petitions alone rarely lead to policy changes, though they often reflect public sentiment and can significantly impact protest campaigns or social movements. E-petitions exist in various formats, with private platforms like Change.org being among the most well-known. In Australia, there are different types of e-petitioning, and it’s important to distinguish between them. The first type is private e-petitions, which serve as gathering spaces for individuals united by a common cause. The second type is parliamentary petitions, which can be initiated at either the state or federal level. Parliamentary petitioning is a process entrenched in parliamentary conventions. The petitions committee enforces rules that enable Australian residents and citizens to express concerns to Parliament and has some authority to compel action from government representatives. While rare, there are notable examples of e-petitions that have led to meaningful change. For instance, the Senate inquiry into media diversity, initiated by former Prime Minister Kevin Rudd in 2020, started with e-petitioning. Similarly, changes to teacher education requirements, which received numerous petitions in 2021, are currently being implemented.  Our recent article for Policy & Internet…

We would like to thank everyone who participated in this year’s Policy & Internet conference at The University of Sydney.  Focusing on the contested nature of ‘good’ Internet policy, we were joined by a range of outstanding scholars from institutions from around the world, including Nanyang Technological University; University of Tehran; Yale University; University of Technology Sydney; University of Queensland’s Indian Institute of Technology Delhi Academy of Research; University of Canberra; University of Milan; University of California; University of Edinburgh; Beijing Language and Culture University; King’s College London; Hebrew University of Jerusalem; Vrije Universiteit Brussel; and Universidad Catolica Del Uruguay.  Over three days, scholars and students presented research and engaged in discussion on a broad range of Internet policy issues, everything from news media, politics, fashion and entertainment content regulations, misinformation, artificial intelligence, the digital platform political economy, digital content labour, online harms, security, sovereignty and data ethics. Associate Professor Julia Powles gave a highly provocative keynote presentation, challenging the dominant rhetoric in AI policy. In her talk titled The irresponsibility of responsible AI she reminded us that AI harm is a systemic issue that can not be meaningfully addressed through individual responsibility.  On day two, Cheryl Langdon-Orr hosted a lively discussion exploring cutting-edge research into ‘everyday Internet and policy issues, covering online gambling, recommendation algorithms, online pornography, the consumption of news content on social media and the monetisation of children online.  Another highlight of day two was the panel presented by the Charles Perkins Centre Truth Decay Node which provided the latest interdisciplinary research on how online arguments, images and narratives shape beliefs, and guidelines for countering the spread of dangerous belief systems. On day three we were joined by Andrew Francis from Australia’s competition authority, the ACCC, who has recently lead a multi-year inquiry into the digital platform economy, and Sophie Murray-Farell from the NSW Government Premier’s Department who are currently developing groundbreaking policy initiatives aimed a addressing…

The Policy & Internet conference will bring together a range of international voices to demonstrate how varying approaches towards internet policy are established, embodied and engaged with by a variety of stakeholders. Together, scholars and policymakers will discuss current practices, alternative designs and the ‘unknowns’ that are required for inclusive internet governance.

Aerial View of Sydney

Location:R.D. Watt BuildingCamperdown, NSW 2050, Australia Dates and time:2-4 October, 20248:30am – 5:30pm The Policy & Internet conference will bring together a range of international voices to demonstrate how varying approaches towards internet policy are established, embodied and engaged with by a variety of stakeholders. Together, scholars and policymakers will discuss current practices, alternative designs and the ‘unknowns’ that are required for inclusive internet governance. Conference program View the conference videos (coming soon) View our Mural View the conference photos (coming soon) Conference Organizers Day One: 2 October 2024 Keynote Speaker Associate Professor Julia PowlesDirector of the UWA Tech & Policy Lab Julia Powles is the Director of the UWA Tech & Policy Lab and Associate Professor of Law and Technology at the University of Western Australia. She is an international research leader in privacy, intellectual property, internet governance, and the law and politics of data, automation, and artificial intelligence. Her current research interests include Big Tech culpability, tech crimes, and data governance in health and performance contexts. Julia serves on Australian federal and state committees on generative AI in education, AI and copyright, privacy and responsible information sharing, responsible AI, and robotics. Prior to joining UWA, she worked at Cornell Tech, NYU, Cambridge, The Guardian, and the World Intellectual Property Organization. Julia studied genetics, biophysics, and law at ANU and UWA, and received her master’s from Oxford and PhD from Cambridge. Doctoral Paper Presentations Day Two: 3 October 2024 Paper presentations Everyday Internet & Policy Charles Perkins Centre Truth Decay Node PresentsThe psychology of online arguments and narratives Conference Conclusion Chair: Dr Jonathon Hutchinson Chair of Discipline of Media and Communication at the University of Sydney He is a Chief Investigator on the Australian Research Council LIEF project ‘The International Digital Policy Observatory,’ and is also a Chief Investigator on the eSafety Commission Research project ‘Emerging online safety issues: co-creating social media education with young people.’ For 2023 and…

Join us in shaping Internet policy discourses at a conference designed to challenge, inspire and innovate

Aerial Overview of Port Jackson

Location:R.D. Watt Building & onlineCamperdown, NSW 2050, Australia Dates and time:2-4 October, 20248:30am – 5:30pm The Policy & Internet conference will bring together a range of international voices to demonstrate how varying approaches towards internet policy are established, embodied and engaged with by a variety of stakeholders. Together, scholars and policymakers will discuss current practices, alternative designs and the ‘unknowns’ that are required for inclusive internet governance. Conference Organizers Local Transport Getting to/from the airport You can access taxis and rideshare services when you arrive. The Sydney CBD is a short, 20 minute ride away and will cost about 45-55 AUD one way. You’ll find taxi ranks at the front of all terminals – simply follow the signs to the nearest ranks. For rideshare services, please arrange with your driver to meet you at the priority pick-up area. Sydney Airport is located just 13 minutes by train from the city. Airport Link offers a fast and convenient way to reach the city and suburbs, with trains running approximately every 10 minutes. To use this service, you can either purchase an Opal Card from the station or WH Smith, or tap on with your Amex, Visa or Mastercard. The train costs up to 38 AUD one way. Public transport You can pay with contactless-enabled American Express, Mastercard or Visa credit or debit cards or a linked device, by tapping on and tapping off at Opal readers. Contactless payments are available on all public transport in the Opal network and you will receive the same travel benefits of an Adult Opal card. Alternatively, the Opal card is an easy, convenient way of paying for your travel on public transport in Sydney. It can be used on all public transport, including trains, ferries, buses and light rail. There are daily and weekly caps on the Opal network, meaning you can travel as much as you like within the Opal network and you never…

Join us in shaping Internet policy discourses at a conference designed to challenge, inspire and innovate.

Location:RD Watt Seminar Room, University of Sydney, Australia, and online Dates and time:2 – 4 October 2024 As our digital society advances, an increasingly diverse array of stakeholders are seeking to have a greater say in its governance (Calandro, 2015, Aguerre, 2020, Tjahja et al, 2022), making the challenge of policymaking for the Internet more complex and contested (Kettemann, 2020, Belli et al, 2023).  The 2024 Policy & Internet conference, hosted by the University of Sydney, invites scholars, policymakers, civic interest groups, platform providers and regulatory bodies to participate in a dialogue about the nature of ‘good Internet policy’. Set against the backdrop of significant global events like NetMundial+10 and the United Nations Global Digital Compact, the conference seeks to unravel the complexities of Internet governance and policymaking and to explore diverse pathways towards a ‘good’ future for the Internet for all.  This conference aims to explore foundational questions and new frontiers in Internet policy and invites contributions that address but are not necessarily limited to the following topics: Defining Good Policy: What constitutes good Internet policy? Which norms and values are pivotal in shaping these policies? Policy Innovation and Ecosystems: What current innovations are shaping policy landscapes? Are these ecosystems effective, and how might they be reimagined? Norm Entrepreneurship: How are different stakeholders championing innovative norms to address the myriad challenges in Internet policy? Processes and Mechanisms: What are the key processes and mechanisms in crafting effective Internet policies? Policy Spaces: Where is Internet policy formulated? Which forums or platforms are or should be central to these discussions? Inclusivity in Policymaking: Who currently influences Internet policy, and who should be involved in these discussions? Impact of Emerging Technologies: How do emerging technologies reshape the frameworks and priorities of Internet policy? Regulatory Expertise: What expertise is necessary to navigate and enhance the efficacy of Internet policy-making? We invite submissions that address the above themes, but also encourage papers that propose…

If the potential of blockchain-driven management is fully realised, what areas in the public, economic, social, political, technological, and business sectors would benefit most?

The rising popularity of crypto-currencies globally has dramatically increased attention to blockchain technology’s capabilities in advancing peer-to-peer transactions and interactions. Namely, blockchain can promote more agile, cost-effective, and intrinsically data-driven project management practices and decision-making in e-governance. These capabilities are translatable not only to the financial and technological sectors but can also promote more efficient public and corporate sector systems. However, there remains a lack of understanding among practitioners regarding how exactly this digital technology could be fully realised removed from the context of crypto-finances. Furthermore, questions remain in terms of what public and corporate values related to government, business actors and decision-makers could harness in various sectors of the economy as part of the implementation process (e.g. public, corporate, social, political, technological or regulatory ones).  An article I recently published in Policy & Internet, titled “Prospects of Blockchain Governance”, addresses recent developments of blockchain-driven governance in various sectors of the economy. It answers the following questions:  How exactly does blockchain technology work?  How could one illustrate schematically the fundamental principles of its work in a practical way that is easily comprehensible for practitioners and project managers in both corporate and public sectors of the economy? What are the critical features of blockchain-driven project management? Why are they essential for public and corporate decision-makers?  What benefits could the blockchain concept bring to different sectors of the economy?  If the potential of blockchain-driven management is fully realised, what areas in the public, economic, social, political, technological, and business sectors would benefit most? Relying on the analysis of rich empirical data provided by experts in the industry across the globe (i.e. those directly engaged in promoting various related decentralised project management tools for a wide range of public and corporate digital ecosystems), the paper provides insider perspectives on the latest blockchain-driven public and project management advancements. Furthermore, it describes the essence of decentralised data governance, how it is intended to be realised by…