Rules of the Digital Economy: Market Protection or a Barrier to Innovation and Growth?

The digital economy is fundamentally reshaping the nature of work, payment mechanisms, and the manner in which the state exercises oversight over the market. European initiatives targeting platform work and the fight against the shadow economy pursue legitimate objectives regarding transparency and fair competition; yet, they simultaneously intervene significantly in the operations of digital platforms and payment systems. While the Czech government shares these ambitions, a clear strategy for their practical implementation remains notably absent.

Tension arises from the disparity between regulatory goals and their real-world impact on businesses, employees, and consumers. Stricter rules may bolster trust and improve tax compliance, but they also risk increasing the administrative burden, curbing flexibility, and—in extreme cases—triggering a reversion to cash transactions and the shadow economy. Yet, digital payments represent one of the few effective tools actually at the state's disposal.

The pivotal question is whether it is possible to establish a framework that enhances transparency and market oversight without unduly hampering innovation and the functioning of the digital services upon which a significant portion of the economy now relies.

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