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By codifying the limit of unethical behavior, regulation also ensures every participant operates at the limit.


This is not true, in my experience. For example, the EU roaming charges regulations for mobile data allows service providers to apply a lower cap to the data if the home tariff is cheaper than €2.25/GB; but almost no providers actually do this, and they instead give the user the full data allowance, at least for providers based in the UK. Before the regulation came into effect, roaming rates were much higher for almost every provider, and an EU tourist would have to buy a local SIM card (or just accept the roaming charges).


Not necessarily, though that's a risk.

As Eric Schmidt famously said, Google's "policy is to get right up to the creepy line and not cross it."

http://allthingsd.com/20110120/talking-schmidt-googles-ceo-i...

A quote memorialised in a documentary whose title is take from it:

https://en.wikipedia.org/wiki/The_Creepy_Line

The problem is that such lines are not static, may move, and particularly in dynamic areas of evolving awareness and policy, do. Much as one can be caught by quickly approaching tides or sneaker waves at a coast, Google and much of the FAANG monopolists (as well as other tech and surveillance capitalists) are finding themselves in unexpectedly deep waters.

Which itself is a real and quantifiable business risk.




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