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The Blurring of the Public‑Private Dichotomy in Risk‑based EU Digital Regulation: Challenges for the Rule of Law

This article argues that there is an increasing erosion of the traditional public-private divide, which is a key principle of liberalism and the rule of law. The authors identify a gradual shift, starting with the "responsibilization" of private actors and progressing to risk-based regulation like the GDPR. They contend that the DSA and AI Act represent a new milestone, as they delegate regulatory powers to private companies, effectively turning them into regulators of their TPSPs. This “privatization of public action” is seen as a serious threat to the rule of law because it removes public action from public scrutiny. To address this, the authors suggest connecting the rule of law more closely with democracy, which could help set boundaries for the legislative conferral of regulatory powers to private entities.