The document discusses the implications of digital disruption for regulators from the perspective of the Productivity Commission of Australia. It makes three key points: 1) Digital disruption is occurring faster than expected and regulators must adapt their approaches to regulation to keep pace with changing technologies to avoid becoming irrelevant. 2) Regulators need to shift toward more risk-based and flexible regulatory models that harness opportunities from technologies like regulatory technology (RegTech) and recognize there are multiple ways to approach regulation. 3) A new comprehensive consumer right is proposed that would give consumers access to and control over their own data, including the ability to transfer it between companies, to empower consumers and spur more competition in the market.

1. Jonathan Coppel
Commissioner
Technology and Institutions
Session 2B – The Digital economy and regulatory
policy
Global Forum on Productivity, Ottawa, 28-29 June 2018 1

2. 2
What will we cover?
About the PC Digital and Disruptive Questions
Overview

3. 3
How we contribute
Counterweight to
vested interests
Vehicle for exploring
Diverse
views
About the PC
Irritating
Independent research and advisory body on economic, social
and environmental issues

4. 4
Work streams
FOUR BROAD WORK STREAMS
Better informed policy decisions
Enhanced public awareness
References from
Government
• Inquiries
• Studies
Performance
reporting
• Government
services and
agreements
• Indigenous
Other regular
reporting
• Industry support
• Productivity
• Indigenous
Self-initiated
research
• Research
projects
About the PC

5. 5
Organisational structure
Around $33 million annual appropriation
4-12
COMMISSIONERS
ABOUT 167
TOTAL STAFF
About the PC

6. Some recent projects
6
Telecommunications
Universal Service Obligation
2017
National Education
Evidence Base
2016
Data Availability and Use2017
Intellectual Property2016
Digital Disruption2016
National Disability Insurance
Scheme Costs
2017
Productivity Review2017
Human Services2017
Transitioning Regional
Economies
2017
Collection Models for GST on
Low Value Imported Goods
2017
National Water Reform2017
Horizontal Fiscal Equalisation2018

7. Rising Protectionism
Digital and Disruptive

8. 8
Digital disruption
Regulator perspective
We always overestimate the change that will occur
in the next two years and underestimate the change
that will occur in the next ten. Don’t let yourself be
lulled into inaction.
Bill Gates

9. 9
Implications for regulators

10. 10
Regulator disruption
Regulator perspective
How we regulate
What we regulate
No common approach
How we enforce regulation

11. 11
Implications for regulatory policy
Regulator perspective
Stronger case for risk-based approach
Multiple regulatory models and tools to use
Harness “RegTech” opportunities
Regulator culture needs to adapt

12. 12
Good regulatory practice
• Does regulation get in the way of
innovation?
• Does digital empower consumers?
• Does digital provide new sources of
information for regulators?
• Does digital offer ways to lower the
costs of regulatory transactions?
Key questions for regulators

13. 13
Consumers as drivers of change

14. 14
Digital technologies – Are we there yet?
Market perspective
Source: Deloitte (2012) Digital disruption Short fuse, big bang?

15. 15
The paradox of technology in health
96% of GPs
22% of surgeons
37% of specialists
Take up of
computers
Market perspective

16. 16
Doctors don’t want patients to know
16
6 4 7
14
65
60 65 63
57
0
10
20
30
40
50
60
70
80
90
AUS ENG US SING CAN
shareofdoctors(%)
have no access to EMR have limited access
Clinicians’ perceptions about the desirability of
patients having access to electronic medical records
Market perspective

17. A new Comprehensive Right for consumers
17
Data Holders
• Private or public data holders all must allow consumers to access, correct
and transfer their data direct to a 3rd party.
• Small businesses treated as if they too are consumers.
• Improve market information, allow public records to be used to prove skills
or history.
Regulators
• Requires a regulator with existing role and experience in consumer policy
but also Ombudsman-style support.
• To ensure standards for safe, pro-competitive data transfer are offered.
• To provide avenues for complaint.
Consumers
• Permanent rights to data they created, to trade or to determine if
collection practice is acceptable.
• Reinvigorate competition to create more choice about the products and
services, and higher awareness.
Regulator perspective

18. Questions
18Productivity Commission Questions
Thank you
Jonathan.coppel@pc.gov.au
Attribution (Icons by the Noun project)