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Networks, constituted through standards, have turned into a new transnational and extragovernmental form of regulation. As a result, governments will struggle to control the operators of cyberspace through force of law. In hindsight, a critical blind spot of the 1990s’ vision for the digital economy was the assumption that Internet-based networking would generally lead to the diffusion of power. The rise of networks has, in many cases, either created new dominant power centers or entrenched old ones. Networks and standards represent a new hybrid legal-institutional form of governance, which is developing across a wide range of geographies and public policy arenas. The rise of networked governance has, in turn, empowered digital platforms to exercise enormous power outside the limitations of regulation or other traditional constraints.
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