The Ambivalence of Algorithms

This chapter maps out the irreducible ambivalence inherent in algorithms, and particularly Big Data techniques, that become evident when confronted by the law. This ambivalence, and its legal consequences, are explained in four steps. The first part of the chapter deals with the darker sides of the digital economy: the use of behavioral algorithms by private companies in market settings not only drives one of the most innovative parts of the economy, but has also given rise to what may be called “digital market failures”. Remedial strategies are complicated by widespread actor heterogeneity. Hence, traditional regulation not only risks lagging behind technological progress, but also being overly restrictive for some and overly permissive for others.