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Rules For Global Systemic Corporations

In this page I’m trying to make the case for international coordinated rules for global systemic corporations.

Legislation usually apply to everyone. For example the GDPR (privacy) provisions from the EU apply to every company. A company that is operating a web site is basically bind to the same rules that apply to Google, Facebook, Apple and the other web giants that are bringing services to billions of people. Every web page needs to request users approval for cookies, that mostly give data to the web giants.
Large web corporations are helping the world transition to a digital aera. They provide a lot of valuable service but s especially in the coronavirus emergency. A global scale is necessary to move forward the world. We need rules that help us move forward, but governments need to change the mindset and understand that a different set of rules is needed depending on the impact.

Systemic global corporations

After the financial crisis of 2007 some countries have adopted the concept of systemic financial institution. Systemic banks are the one that a bankrupt could block and imperil the whole country. New rules only apply to these large banks. There are under stringent controls and they are required to have stronger equity base and also need to be prepared in case of financial crisis.

We need the same approach for global systemic corporations:

  • Global financial institutions.
    They provide payments, exchange and other services to many companies. Major stock exchanges would be a natural candidate for this.
  • Global Web corporation.
    They provide the infrastructure for network functioning, search, communication, advertising and payments.
  • Global Pharmaceutical companies.
    They control
  • Global infrastructure companies.
    For telecommunication, energy transport, airlines.
  • Global resource extractions and exploiting.
    Electricity, Petrol and other mining companies that manage the supply for essential elements and minerals.
  • Other global systemic companies.

Register for systemic global companies

Global systemic companies should be identified through a set of rules.
Once a company is considered to be a systemic one, it should be entered in register of the global systemic companies.

Special rules

Once a company is in a global register, special general rules should apply to them.

  • Transparency.
    Even if a company is a private company, she should make public available a set of financial and corporate information.
  • Uniform taxation rules.
    The company should pay tax based on a set of rules and in all country she operates. Tax rules should prevent these companies to use tax trick and to put state in competition to get financial advantages.
  • Elevated anti-lobbying and anti-corruption rules:
    These companies should be prevented to financially influence the political process of states. Anti-corruption rules similar to the public servant should apply to all personal of the company.
  • Anti-discrimination rules.
    Systemic companies should offer they products and services to everyone in a non-discriminating manner. Therefore, the freedom to choose freely with who doing businesses should be limited.
  • Anti-competitive rules.
    Systemic companies should have subject to higher anti-competitive rules, so that they cannot prevent smaller company to bring forward innovation.
  • Rules specific for the sector they operate.
    A set of rules for each sector should be put in place.