Rethinking Digital Borders to Address Jurisdiction and Governance in the Global Digital Economy

Digitalization is transforming economic activities, necessitating updated legal and policy frameworks for appropriate jurisdiction and governance. The borderless nature of digital trade introduces complexities around applicable laws, taxes, responsibilities, and liabilities. This paper reviews current debates on regulating digital spaces and reimagining digital borders to support equitable governance. Doctrinal and comparative analyses examine jurisdictional complexities. Grounded Theory assess regulatory initiatives. Ambiguous jurisdiction enables large platforms to circumvent laws. Prescriptive control risks stifling innovation. Blending scope-based rules with effects-based standards can balance control and openness. Principles-based extraterritorial applications of law aligned to global accords, demarcating platforms’ responsibilities based on risk levels and impacts are suggested. It calls for cooperation advancing rights and fairness.