This ambitious work is a broad yet comprehensive analysis of the challenges and technical and legal complexities involved in the co-regulation of cyberspace within the EU. The book is based on, but also updates, research by Dr Marsden for two reports published for the European Commission and has drawn in particular from the section of this previous research concerning the “co-regulatory project”; Marsden et al, Options for and Effectiveness of Internet Self- and Co-Regulation (2008) and Tambini et al, Codifying Cyberspace: Self Regulation of Converging Media (2008). Marsden's considerable experience and knowledge of the relevant regulatory, technological and policy-making issues, established through numerous publications on regulation, as consultant to the European Commission on such matters and experience as a senior analyst for RAND Europe, are clearly demonstrated in this body of research.
Chapter one provides an overview of the book's objectives and themes. Its main aim is to address whether Internet regulation is “a paradigm of constitutionally responsive co-regulation” (p. 1). Marsden approaches this investigation through a detailed methodology involving both empirical and legal analysis. His empirical research is primarily based on a number of detailed case studies. Chapters three to seven focus on the case studies of several Internet-based institutions across Europe. The grouping of these self or co-regulatory organisations (“SROs”) by chapter is based on the “scope and interconnectedness” of their different regulatory frameworks (p. 39). The frameworks range from “self organization”, including the operation of the social networking entity of Bebo; “self-regulation and standards” as adopted by major SROs such as ICANN; “co-regulation and medium law” which applies to the pan European online games classification scheme, PEGI online and “censorship” of online content by SROs such as Internet Watch Foundation, a UK ISP charitable hotline for the removal of online child pornography. This evidence-based analysis is also informed by interviews and consultations with an interdisciplinary group of key stakeholders including leading Internet policy experts from industry, regulators and academic experts in law and computer security engineering.
The book's legal analysis begins in chapter two which delves into the origins of co-regulation as a “relatively novel phenomenon, given that state regulation and self-regulation are as old as the markets” (p. 54), its role in EU governance and “Better Regulation” and the inherent development of co-regulation with the growth of the Information Society. For example, less than a million of European households were connected to the Internet in 1997 compared to more than 200 million households in 2007. This ubiquitous role of the Internet in society, as Marsden highlights, created “new security risks, rights and responsibilities for users” (p. 49) and prompted a shift from a self-regulation to a co-regulation paradigm. Marsden then proceeds to identify the many types of regulatory schemes that have been adopted by SROs. This is done with tremendous clarity in tables distinguishing types of self- and co-regulation using a scale measuring levels of government involvement (p. 62, see also pp. 129 and 227). For example, an SRO, such as Second Life is subject to self-organisation, resulting in a lack of transparency and internally self-imposed controls of profit-maximisation, and is rated “0” on such a scale in terms of regulatory schemes in contrast to the UK SRO of Nominet at “11” which is now subject to co-regulation. Nominet, following reform, is regulated under the provisions of the Digital Economy Act 2010, a statute containing a number of controversial provisions aimed at requiring internet service providers (ISPs) to assist in reducing illegal ‘peer to peer’ file-sharing. Consequently, the development and, what was then pending, judicial review of the Act of 2010 is the subject of a detailed critique in chapter seven entitled: “Co-regulation failure in practice” (pp. 210–218). The court challenge brought by two ISPs on the grounds inter alia that the aforementioned provisions were in breach of the proportionality principle under EU law and the European Convention on Human Rights (“ECHR”) was pending at the time of publication but was subsequently dismissed by the High Court in April 2011; B.T. v. Secretary of State for Business, Innovation and Skills [2011] EWHC 1021. Marsden also addresses the concept and requirements of co-regulation as defined under EU law (as held by the Court of First Instance in UEAPME v. Council [1998] Case T-135/96, ECR II-2335 that the legitimacy of co-regulation is based on the ‘representativeness’ of relevant stakeholders being well displayed), the EU policy of the Inter-Institutional Agreement (“IIA”) on Better Law-Making and judicial review and co-regulation in the UK and under the ECHR. Another highlight of chapter two is an insightful overview explaining why co-regulation “is a little described or understood technique in U.S. literature and regulatory policy” (pp. 66–70). Chapter eight consists of a discussion of the nature of Internet co-regulation within the context of the overall regulatory debate and a summary of the book's findings.
Marsden concludes that Internet regulation is a paradigm of “polycentric regulation” on the basis that “online activity offers so much freedom and risk to individual users” resulting in an “intermingled co-regulatory environment” (p. 221). Marsden's pragmatic recommendation that understanding the dynamics of the Internet is essential before any normative arguments involving the construction of legitimacy can be developed is welcome. The recommendation acknowledges the particular nature and complexity of this regulatory environment and the impact of key stakeholders in its reform: “In arguing from a constitutional position for a reversion to offline standards of regulation and accountability, many are making a ‘pipe dream’ mistake of arguing for a position that is simply not recognized by the major multinational actors and the governments that control their operations' (p. 222). On a more tangible note, the increasing transparency and representativeness brought about by the shift from self-regulation to co-regulation in policy-making and the Internet is a welcome development. As Marsden notes: “The trend towards co-regulation does … suggest a rolling back from the spectacular neo-liberal drive towards self-regulation, with an involvement of public interest groups as well as government, to create greater representation in the co-regulatory bodies and therefore (it is hoped) greater transparency, internal democracy and respect for fundamental rights” (p. 47).
Overall, Marsden's research, both evidence-based and cutting-edge, provides a broad and theoretical though clear overview of the complex legal and technical issues involved in the regulation of the Internet. In particular, this book is an invaluable source of information for those interested in regulatory reform and the ongoing challenges posed by Internet co-regulation.