Regulating disruptive technologies in the age of regulatory capitalism: A case study of the sharing economy

The rise of sharing economy platforms, such as Uber and Airbnb, has challenged traditional regulatory frameworks, raising fundamental questions about the role and limits of regulatory governance. While sharing economy platforms claim to enhance innovation and resource efficiency, they frequently operate in legal grey zones and lead to many market failures. The discourse over their regulation encapsulates broader tensions between state intervention and market autonomy, highlighting the tension between public and private interests. My research examines the fundamental question of ‘Why regulate the sharing economy?’ by applying public interest, private interest, institutional, and ideational theories to sharing economy platforms. Sharing economy platforms often invoke narratives of sustainability and resource efficiency to oppose regulation and avoid regulatory scrutiny. The discussion over their regulation represents a deeper ideological clash between those who see market evolution as inevitable and beneficial and those who argue for regulatory intervention to align outcomes with broader societal values. This ideological conflict also ties into the longstanding ‘innovation versus regulation’ debate. While the sharing economy is hardly the first dynamic and hybrid regulatory target to blur the lines between public and private interests, its ideological framing amplifies regulatory ambiguity. This complexity also underscores the dual role of regulation as both a ‘red light’ that curbs adverse activities and a ‘green light’ that facilitates opportunities and fosters innovation. In light of shifting regulatory paradigms, my work contributes to discussions on platform regulation within the context of a post-regulatory state (or, as Levi-Faur, Jordana and Braithwaite suggest, ‘regulatory capitalism’). The findings of my research offer insights for scholars in law, economics, environmental and regulatory studies, as well as policymakers navigating the challenges of platform regulation.