DefinePK

Abstract

The global digital economy has emerged as a transformative force reshaping trade, finance, communication, and governance. Yet, this rapid expansion has outpaced the development of robust legal, ethical, and regulatory frameworks capable of addressing the complex challenges it presents. In the absence of harmonized cross-border policies, digital ecosystems face issues such as data protection loopholes, uneven privacy standards, jurisdictional conflicts, and the ethical implications of emerging technologies like artificial intelligence, blockchain, and big data analytics. This article critically examines the regulatory and ethical dimensions of the digital economy, with particular attention to how divergent national policies create systemic risks, including cybersecurity vulnerabilities, consumer exploitation, and market monopolization. Drawing on interdisciplinary perspectives from economics, law, political science, and technology ethics, it outlines the urgency of creating cohesive global governance structures that balance innovation with accountability. The study further evaluates existing international frameworks, such as GDPR and OECD guidelines, identifying both their strengths and their limitations in addressing evolving digital realities. By integrating case studies from multiple jurisdictions, the paper proposes a multi-tiered approach to digital governance—incorporating regulatory convergence, stakeholder collaboration, and adaptive ethical principles. Ultimately, the article advocates for a coordinated global effort to close regulatory gaps and build a resilient, equitable, and ethically grounded digital economy.