Technology companies troubleshoot local regulations

2015 has seen many instances of technology companies expanding rapidly into new markets only to later face legal challenges. Rather than see regulations as a barrier to some business activity, it is instructive to consider why they exist in the first place. Regulations designed to promote competition or protect consumers are just as important as the services being offered by companies. It’s often the case that regulations can be improved to accommodate new business models instead of completely scrapped for being outdated.

A company’s customer is also a regulator’s constituent, so the goals of convenience must go hand in hand with protection. Just as technology companies can appreciate the function that regulators perform, regulators can also glean insight from the software testing model. Before rules go into effect, they should be scrutinized for potential implementation problems. The lifespan of a rule should also be considered: a constantly shifting set of rules would be just as onerous as one that did not change at all. After an appropriate period of time has passed, regulators should revisit and adjust rules to fit changing market conditions. Rather than see themselves in conflict, technology companies and regulators can teach each other something about delivering convenience, competition, and customer protections.