International experience of state regulation of business in social
networks
OKSANA PETRENKO
PhD in Public, Associate Professor
Department of Applied Economics, Entrepreneurship and Public Administration,
National Technical University "Dnipro Polytechnic"
19, Dmytra Yavornytskoho Av., Dnipro, 49005,
UKRAINE
YEVHENII KOSTYK
PhD in History, Associate Professor,
Department of Economics, Faculty of Financial, Economic and Vocational Education,
Hryhorii Skovoroda University in Pereiaslav,
30, Sukhomlinsky St., Pereyaslav, Kyiv region, 08400,
UKRAINE
OLENA BIELIAIEVA
Candidate of Public Administration
Department of Business Economics and Administration,
Sumy State Pedagogical University A.S. Makarenko,
87, Romenskoe shosse, Sumy, 244027
UKRAINE
LARYSA MELNYCHUK
Doctor of Science in Public Administration, Associate Professor,
Department of Public Administration and Governance,
National Aviation University,
1, Liubomyra Huzara ave. Kyiv, 03058
UKRAINE
VIKTORIIA LOLA
PhD in Public Administration, Associate Professor,
Department of Аpplied Еconomics, Еntrepreneurship and Рublic Аdministration,
Dnipro University of Technology,
19 Dmytro Yavornytskyi Av., Dnipro, 49005,
UKRAINE
АNZHELA OLKHOVSKA
Doctor Sciences of Pharmacy, Associate Professor,
Department of General Medical Disciplines and Social Pharmacy
Interregional Academy of Personnel Management Ukraine,
2, Frometivska St., Kyiv, 02000,
UKRAINE
Abstract: - State regulation of business in social networks provides for the protection of personal data, intellectual
property rights and ensuring the confidentiality of information of legal entities and individuals. The purpose of
the academic paper is to analyse the international experience of state regulation of business in social networks
and to determine the approach to the model of its implementation. Features of the development of digital
technologies make it possible to improve the selection of methods for carrying out the research, which will be
EARTH SCIENCES AND HUMAN CONSTRUCTIONS
DOI: 10.37394/232024.2023.3.2
Oksana Petrenko, Yevhenii Kostyk,
Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
E-ISSN: 2944-9006
12
Volume 3, 2023
based on the use of expert evaluation. The research methodology consists in conducting a comprehensive study
of the modern environment of social networks and identifying key areas for state intervention and defining the
legal framework for conducting business in social networks. In the course of analysing the state regulation of
business in social networks, the search method, induction and deduction, and the empirical method were used.
With the help of the latter, an analysis of the level of state presence in the activities of the corporate sector and
the implementation of characteristic principles was carried out. The results of the academic paper characterize
the trends of strengthening the influence of the state on the regulation of business activities in social networks,
the need to introduce reporting and the existing system of user data protection. Thus, the academic paper provides
a comprehensive analysis of state regulation of business in social networks.
Key-words: - state regulation, digital technologies, intellectual property, non-property rights, personal data,
information protection, trademark.
Received: June 263, 2022. Revised: May 17, 2023. Accepted: June 16, 2023. Published: July 11, 2023.
1 Introduction
Currently, the features of the development of digital
technologies cause the wide integration of business
into these processes and the possibility of forming
commercial relations in the digital environment.
Such a course of events leads to the intervention of
the state in the financial, managerial and marketing
activities of the business. This is determined by the
protection of the state’s national interests, which
consist in ensuring financial and economic
development and the possibility of protecting state
secrets and statistical information. Social networks
contain significant information about the company’s
activities in the selected market segment. In
addition, enterprises in the digital environment have
access to a large audience, which forms the means
of data analysis, conducting special marketing
studies. In order to ensure the effective development
of digital business in social networks, the following
models are used: corporate management of personal
data, social rating (Chinese model), and pan-
European – it involves the use of concentration on
the responsibility of social networks for the personal
data protection. Features of modern state regulation
of business in social networks are various theoretical
and methodological approaches to its
implementation. European and Chinese experience
of business regulation testifies to the high level of
development of the protection of intellectual
property rights and personal data; however, aspects
of doing business and obtaining a legal form for it
have significant differences in the legal apparatus of
the countries around the world.
This is precisely why, in order to ensure effective
development, it is necessary to implement an
effective mechanism of state regulation. Digital
trademark registration is the most popular means of
using intellectual property in social networks. The
importance of this direction is determined by the
factors of corporate ethics and business culture. The
features of state regulation of business in social
networks are characterized by interference in
business conduct, delineation of business
boundaries and the legal dimension of enterprises
regarding the use of personal data, their analysis and
transfer, ensuring natural competition.
2 Literature Review
The key problem and threat of the modern
environment is insufficient protection of personal
data, because digital technologies are only
developing and changing approaches to protection.
Therefore, ensuring the lawful use of personal data
is a priority task for state regulation of business in
social networks. The largest part of state regulation
is aimed specifically at this task, forasmuch as the
business that operates in social networks is aimed at
working with a wide audience and using customer
data. Large industrial enterprises use social
networks as a tool to protect the reputation of their
brand through presence and high social activity.
According to the viewpoint of the scholar, the
importance of using state regulation and means of
determining the functioning of the corporate sector
is the main task of the state in the digital economy
[1]. After all, the majority of businesses in the
modern economic environment are transforming
their activities to digital ones. Noyes adheres to the
same position and defines state regulation of
business in social networks as an effective
mechanism for supporting the corporate sector and
stabilizing the economy in conditions of social-
economic threats [2]. Legal issues have been studied
by Taylor [3]; the scientist argues that the
mechanism for acquiring intellectual property and
private property of an intangible nature in social
networks is not sufficiently developed in the
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DOI: 10.37394/232024.2023.3.2
Oksana Petrenko, Yevhenii Kostyk,
Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
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European dimension. This approach, according to
the standpoint of Han, creates the problem of
legitimacy of business processes in social networks
and stimulates the state to use modern tools of
influence and control [4]. The opinions of relate to
state regulation in the field of personal data
circulation; the scholar considers it necessary to
ensure the international legal mechanism of business
activities in social networks under regional
legislation [5]. Taking into consideration the modern
legal instability in the world and spreading the
information warfare, Al-Rawi believes that the
importance of using state regulation of doing
business should be carried out in all social
environments, taking into account the digital one
[6].
The author Abidin has investigated that modern
tools for using state influence on the design of
business activities in social networks should be
improved from the point of view of efficiency [7].
They should promote the development of natural
competition and protect the right to intellectual
property.
The state policy of regulating business activity
should be focused on only two key concepts: the first
lies in ensuring the protection of personal data of
businesses, customers and government
representatives; the second one is the stimulation of
additional tax revenue and business development
within the country. Such a definition of state
regulation is of the highest priority for the modern
international environment, and it determines the
qualitative basis for implementing business
activities. Thus, the conducted literature review
testifies to the diversity of approaches towards the
state regulation and the features of their
implementation, which led to paying attention to the
problems of analysis and definition of aspects of the
state regulation.
3 Research Goals
The purpose of the academic paper is to study the
processes of state regulation of business in social
networks and to determine the key principles of its
implementation. The conducted research reveals the
modern approaches of the international community
regarding the possibility of applying and
implementing an effective mechanism of business
activity for using in social networks. By virtue of
using the expert evaluation, it is necessary to
investigate the quality of the state’s presence in
social networks – Facebook, LinkedIn, and
Instagram. The conducted survey among
construction enterprises makes it possible to
determine the quality of the state’s influence on
business activities. The aspects of implementing the
state regulation of business in social networks are
the legal mechanism of e-commerce, the transfer of
intangible rights and operations with customers’
personal data. The research objectives are the
analysis of the key legal fundamentals of the state
regulation mechanism of business and the
determination of the state’s legal model for
implementing the regulatory policies. Moreover, it
is expedient and significant to analyse the
application of the model of the American DMCA
law, the ‘TRIPS’ Agreement and the WIPO (World
Intellectual Property Organization), the directive on
the protection of personal data Directive 96/9/EC,
etc.
4 Materials and Methods
The research methodology of state regulation of
business in social networks consists of a theoretical
and methodological part and an experimental study.
By applying the exploratory analysis and
synthesis methods, the main forms and methods of
using state regulation of business in the global space
were analysed and grouped. It is proposed to
determine a sample of 30 websites of construction
enterprises in the German, Chinese and American
space. They include the following ones, namely:
Hochtief, Ed. Züblin AG, Strabag AG, China State
Construction Engineering Corp. Ltd, China Railway
Construction Corp, Forty West, CSI Group, Antigo
Inc., Shanghai Construction Group Co. Ltd, etc. The
advantage of using the expert evaluation over the
content analysis lies in the ability to display the
qualitative characteristics of the state’s presence,
which is not possible with the content analysis. For
this purpose, the following parameters were chosen:
protection of personal data, bureaucracy of
trademark registration, provision of
recommendations on taxation and other means of
state influence.
Various approaches to implementing and
conducting such an assessment were characterized.
The empirical research consists in using the expert
evaluation from among a sample of the following
countries: Germany, the USA and China. With the
help of the comparison methods, a model of the
approach of state regulation in each of these
countries was determined. From among the fields of
the research, the representatives of the construction
industry were interviewed and the participation of
the state in the regulation of business activity was
investigated according to their viewpoint.
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DOI: 10.37394/232024.2023.3.2
Oksana Petrenko, Yevhenii Kostyk,
Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
E-ISSN: 2944-9006
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On the basis of statistical sampling, the key
features of using various models of state influence
on business regulation were determined, and a
hypothesis was formed regarding their further
development. By virtue of using the induction
methods, a mechanism for improving further state
regulation was developed, and a number of
recommendations were provided in order to
stimulate the transition of traditional business to the
digital one as an effective form of ensuring further
economic development. By applying the abstraction
method, the basic principles of business activities in
social networks were defined, and the strategic
interests of the social network and the state were
outlined.
The presence of the state in the issue of business
regulation in social networks is due to the massive
processes of the society digitalization and business
processes, which necessitate the determination of
the legal basis of economic activity. The obtained
approaches make it possible to argue the further
strategy of state regulation in social networks and
the need to improve the mechanism of intellectual
property rights protection, trademark registration,
etc. The proposed measures are the final stage of the
analysis, and they form logical conclusions
regarding the principles of state regulation of
business in social networks. Foreign experience
testifies to the rapid integration of traditional
business into the digital one, leading to the
development of the legal field of regulation,
influence and principles of activity. Thus, the
available research methodology makes it possible to
determine in detail the legality of implementation
and the necessity for state intervention in business
regulation. The modern viewpoint on applying the
effective methods of legal influence is the use of a
clear mechanism for the circulation of personal data,
its transfer and the possibility of using it in order to
ensure national interests. Having determined the
main forms and methods for the analysis of state
regulation of the corporate sector in social networks
and business development, it is possible to present
the results of the obtained research.
5 Results
In the conditions of the global coronavirus pandemic
and global geopolitical problems, business is forced
to switch to a remote work format and create quality
fundamentals in a new environment – the digital
one. Business activity in the digital environment is
characterized by the optimization of all traditional
processes and their transfer to the online mode. This
format makes it possible to provide the world market
of the corporate sector with opportunities for further
functioning and implementation of activities. The
features of launch the business in social networks are
determined by legal regulation, forasmuch as the
high concentration of the business environment and
the implementation of legal acts between network
users require the state to establish clear state
regulation and determine the legal basis of
economic, marketing and commercial activity in
social networks. In addition, modern world
experience shows that each country and even culture
has its own approach to regulating business in social
networks.
State regulation of business in social networks is
characterized by innovative approaches to the
determination of the legal nature of the social
network as a source of the presence of the corporate
sector and the possibility of carrying out
commercial, marketing and management activities
by means of digital technologies. In this way, social
networks directly affect the current state of business
development in social networks.
The protection of intellectual property creates a
number of legal bases regarding the possibility of its
use in one’s commercial or public activities. An
important measure for the formation of an effective
mechanism for the regulation of intellectual
property rights in social networks is the possibility
of creating and acquiring the transfer or
authorization of such rights. The most popular social
networks operate on such principles; they closely
interact with analytical centres, which make it
possible to evaluate the effectiveness of the
intellectual property protection policy. According to
the existing approach, this provides a technological
toolkit for the possibility of creating symbolic
features in social networks of private information.
In foreign legislation, private information and
confidentiality is characterized as a private source of
intellectual property product provision and
protection against copying and illegal distribution.
Such an approach creates qualitative and legal
standards regarding the provision of corporate
regulation. This is precisely why the protection of
intellectual property forms a key direction in
implementing the state regulation of business. The
application of this approach makes it possible to
improve the company’s operations, protect one’s
reputation and marketing brand, and avoid possible
public scandals. The photo materials, design, video
materials, text content and other types of digital
products can be the products of intellectual property.
Providing such an approach can form the main
mechanisms for creating and developing business in
social networks.
EARTH SCIENCES AND HUMAN CONSTRUCTIONS
DOI: 10.37394/232024.2023.3.2
Oksana Petrenko, Yevhenii Kostyk,
Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
E-ISSN: 2944-9006
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Table 1. Comparison of approaches towards the presence of state regulation of business in social networks
Intellectual property
Protection of non-property
rights
The
USA
Intellectual property in the
United States follows the key
regulation; after all, the
established legal mechanism
clearly defines intellectual
property as a product of a
person or a business institution,
which ensures its privacy and
the acquisition of ownership
rights towards it.
The protection of non-
property rights is clearly
established and elaborated at
the request of the modern
business environment; it
defines the enterprises’
principles of the activities and
the forms of transferring such
rights with the term of such
transfer, taxation, etc.
China
In China, a mechanism for
determining and registering
intellectual property has been
clearly established. In addition,
since 2009, the country has
clearly established legislation
on using the intellectual
property in social networks.
Non-property rights are
characterized by a
strengthened mechanism of
regulation and implementation
of commercial activities
regarding their transfer or
circulation.
Germany
It is allowed to register any
trademark, but the company
cannot use registered
trademarks; moreover, the
mechanism for determining
such trademarks is unclear,
which complicates the legality
of conducting business
activities.
Non-property rights can be
protected only with their
relevant registration; without
this registration, it is
considered that such an act
does not acquire legality.
Source: compiled by the author
Let’s evaluate the factors of the corporate
enterprises’ concern towards the presence of the
state in social networks and form key indicators of
the attitude and restraining factors of business
development in social networks. The proposed
mechanism will be applied to analyse the possibility
of further legal improvement of the corporate
regulation system of economic relations and the
possibility of using effective approaches regarding
the acquisition of intellectual or non-property rights.
Based on this approach, the state is able to improve
its macroeconomic environment, ensure the
development of business in social networks and
create effective means of legal entities’ activities.
It is expedient to conduct a study on the factors
inhibiting the development of business due to the
excessive presence of the state. It is proposed to
carry out the study based on using a statistical
sample among enterprises engaged in the sale of
construction equipment. From among the surveyed
enterprises, an English questionnaire will be used for
the possibility of providing an assessment regarding
the presence of the state in each of the proposed
levels and a sense of certain pressure and difficulty
in the development of the business environment.
Such an aspect of the study can create features of the
principle of stimulating further business
development and determining the vector of
subsequent development prospects.
By the way, in order to determine the continental
and regional differentiation of the presence of the
state in social networks, companies from Germany,
China and the USA were taken for the research.
Each of these companies may contain various
problems of state regulation of business and the
subsequent legal mechanism of regulation of its
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Oksana Petrenko, Yevhenii Kostyk,
Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
E-ISSN: 2944-9006
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activity. Following these approaches, an analytical
study can be carried out, which makes it possible to
display key results regarding the process of
inhibiting the presence of a business in social
networks. The features of the conducted research
will be divided according to the respondents’
assessment. According to the expert evaluation, it is
proposed to apply a score from 1 - the minimum, and
10 - the maximum value of the presence of the state
in social networks, as well as possible existing cases
of violation of corporate rights or intellectual
property, or vice versa, their protection.
The questionnaire consists of 9 questions:
1. Evaluate the quality of the state’s influence
on the protection of intellectual property.
2. Provide an evaluation of the monitoring
activity of the state regarding personal data.
3. How often is a request for the presentation
of personal data carried out?
4. Are there any financial constraints,
restraints or other factors for the operation of the
business?
5. Provide an evaluation of the number of
official appeals by representatives of state
authorities with requests, claims or proposals.
6. Has your company signed any legal acts or
contracts regarding commercial activity in social
networks with representatives of official state
bodies?
7. Provide an evaluation of the state’s
influence on restrictions on commercial activity in
social networks.
8. Give an assessment of the state regulation of
intellectual property rights in your country.
9. Give an assessment of the state’s influence
on the effectiveness of taxation.
It is suggested to use the analysis in the following
networks: “Facebook”, “LinkedIn”, and
“Instagram”. Such an approach will be able to reveal
the most effective country’s experience in
implementing the business regulation policy in
social networks. The research results in more detail
are shown in Table 2.
Table 2. The results of presence of the state in business regulation
Germany
China
The USA
Intellectual property protection
10
10
10
Monitoring of personal data use
8
10
8
Request for provision of personal data
4
10
7
Establishment of financial regulation
1
8
5
Appeal on the part of the authorities’ representatives
3
10
4
Signing of legal contracts
3
10
4
Restrictions on commercial activity
2
9
5
Protection of intangible rights
7
10
7
The possibility of taxation and the mechanism of its
implementation
2
9
8
The mean value
4,2
9,2
7,3
Source: compiled by the author
The conducted research shows that we have
obtained results on the mean quality indicator of the
presence of the state in the corporate sector. It turned
out to be the largest in China, which indicates the
maximum presence of the country in business
activities. China uses big data tools that can analyse
social media activity, determine legitimacy, and
make adjustments accordingly. In China, the legal
protection of intellectual property, corporate non-
property rights and the possibility of registered
entrepreneurial activity is developed. However, at
the same time, China is implementing a strict
regulatory policy of business activities in social
networks, which creates excessive pressure on the
country’s corporate environment and significantly
inhibits its development. That is why this indicator
is 9,2, which is the highest level of state presence in
social networks. In addition, according to the
conducted surveys of enterprises, there is an
approach regarding the implementation of audits,
the need to report to the social rating system and the
provision of key information.
Based on this approach, it can be established that
in China, state regulation of business in social
networks is carried out in the form of total control
and monitoring of commercial activities. In
addition, business activities in social networks
almost do not differ in terms of the legal status of
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DOI: 10.37394/232024.2023.3.2
Oksana Petrenko, Yevhenii Kostyk,
Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
E-ISSN: 2944-9006
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intellectual property, the use of personal data from
traditional forms of functioning. Therefore, in
China, the current legislation is aimed at using the
strict means of control and the possibility of business
inspections in the digital environment, namely social
networks.
The experience of Germany shows that this
country has a fairly liberal corporate market and the
absence of a real-working mechanism for
determining commercial activity and establishing its
legal aspect. It is according to this nature that the
legal basis for state intervention in the formation of
the protection of personal data and private
information is formed. However, in Germany there
is no well-developed mechanism and determination
of the legal status for participants in the business
environment. Therefore, for German legislation,
only a registered brand will be considered an official
representative of a business. This is precisely why
the definition of trademarks and the features of
acquiring a legal character are unofficial, which
determines the public statements of the enterprise, a
possible advertising campaign. The corporate sector
in Germany is forced to go through the bureaucratic
procedure of registering its trademarks, so that the
state regulation of commercial activity and the
protection of intellectual property rights can act on
German enterprises as a real representative of
business. Consequently, the minor state presence in
this aspect is considered a key problem. The
protection of personal data is carried out
comprehensively, and there are periodic audits of the
legality of using clients’ personal data of the
enterprises under study.
Such features testify to the fact that there is a
weak presence of state regulation of business in
Germany, which is mainly aimed at protecting
personal information and customer data; however,
the definition and regulation of business activity is
possible only prior to such preliminary registration.
The German approach of the presence of the state in
social networks stimulates the development of
business in social networks, forasmuch as the only
obstacle is the bureaucratic registration process.
That is why a liberal model of doing business is
observed in Germany.
The peculiarities of the US state regulation
indicate a strict regulatory form of personal data
protection and the possibility of carrying out the
relevant reporting. For instance, the social network
“Facebook”, which contains a variety of corporate
enterprises and official business representatives,
announced in 2019 about a large data leak from the
network and stimulated a public review and a
lawsuit in relation to the owner M. Zuckerberg
regarding the personal data protection management
policy and the direction of activity. Thus, the
features of using the social network for business
purposes stimulate the intervention of state
authorities, forasmuch as they can pose a threat to
national security. Features of the system of business
regulation by the state in social networks are a
significant segmentation of the legitimacy of
legislation by states on a regional basis. For instance,
in the State of California, approaches to protecting
intellectual property use of a trademark differ from
the legal approach in the State of New Jersey. The
difference lies in the fact that the possibilities of
implementing such an approach create a
differentiated model of the functioning of the
corporate sector, defining it as a multifactorial one.
This approach to government regulation in the
USA stimulates business to strengthen its presence
in the corporate sector, but inhibits the quality of
corporate activity formation and may pose a threat
to the client. However, despite this, in the USA, the
mechanism for acquiring rights to intellectual
property and the specifics of using private
information of corporate enterprises in social
networks is clearly defined. Such an approach
qualitatively stimulates the development of
economic relations and forms the economic security
of the market.
Statistical data point to the fact that the
importance of further state regulation of business in
social networks should be formed according to
methodical approaches to its determination and the
possibility of further use in corporate activities. The
social network is considered as a form of corporate
relations and gaining access to the legal sector when
conducting economic activities.
Thus, the conducted research indicates the
development of corporate relations and the transfer
of commercial activities to the Internet, which
testifies to global transformational processes for the
regulation of relevant legal relations. The main
common principle of such countries as Germany, the
USA and China is that the use of personal data is
prohibited and established by the criminal code
regarding the fact of committing such offences. The
use of personal data is restricted when transferred to
other private individuals in each of the countries
under study. Peculiarities of using personal data for
one’s own commercial purposes are also violations
that can be classified under criminal proceedings.
Such approaches create high-quality modern
conditions for introducing and implementation of
entrepreneurial activity in social networks, and they
can strengthen the characteristic aspects of its
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Oksana Petrenko, Yevhenii Kostyk,
Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
E-ISSN: 2944-9006
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regulation. The importance of constant monitoring
lies in the factors as follows:
ꟷ The digital space is constantly changing,
leading to the emergence of new technologies,
online environments and, as a result, digital products
and commercial interactions between customers and
businesses. Consequently, the presence of the state
should stimulate the definition of clear forms of such
activity as legal and contribute to the protection of
corporate rights.
ꟷ The possibility of the risk of using personal
data that poses a threat to the country’s national
interests. Selling and transferring personal data to
any other country or using it in an illegal direction.
The corporate sector, especially those industries that
are of strategic interest to the state, should provide
only official information, not disclose state secrets,
and promote the protection of information. Such a
reason is important for the formation of state policy.
In addition, the conducted research testifies to the
fact that in states with a totalitarian form of
government, the role of the state in social networks
is too tangible.
ꟷ The formation of a favourable investment
environment and the possibility of integrating the
traditional economy into the digital one. According
to forecasts of the development of digital
technologies, the rate of growth and transition of
business to the online format forms the basis for
determining its digital functioning. The Doing
Business Centre has assumed that the presence of
business in the Internet environment will increase by
almost 85% by 2030 among those countries that
have access to the Internet and an existing digital
infrastructure. This approach necessitates the
formation of legal policies even today, the definition
of the participants of such a legal environment,
outlining their legal relations and the possibility of
using in this digital business space.
The described factors indicate that the presence
of state regulation of business in social networks will
increase, forasmuch as the features of business
functioning in the digital environment will become
a priority and will be subject to supervision as in a
real form of entrepreneurial activity. Therefore, it is
possible to form further directions of the research.
6 Discussion
The conducted research shows the features of the
modern development of digital technologies and
their wide circulation in the business environment,
which stimulates the legal intervention of the state
and the formation of the necessary legal instruments
in order to determine its further activities and the
possibility of using effective means of regulation.
An analysis of international experience was carried
out. It has been determined that in the Asia-Pacific
region, where China is the central country with the
most developed economy and digital environment, a
totalitarian form of supervision and state regulation
of business activities has been established. Prospects
for further research should be studying the
manifestation of negative consequences due to
excessive state interference in the work of the
corporate digital sector. By virtue of applying
subsequent investigations, a practical mechanism
can be created for implementing the modern
principles of changing the established paradigm in
the Chinese business environment and building
relations with the state. In addition, China, as a
centre of digital technological development, is able
to offer innovative own approaches to the formation
and acquisition of such forms of state regulation.
By the way, proposals on improving the legal
mechanism of state regulation of business in social
networks on the European continent can become an
important direction. On the basis of using the
experience of Germany, it has been determined that
the European model is liberal, and it contains a
number of shortcomings regarding weak control of
business circulation and the use of trademarks.
According to this approach, it is worth outlining
further regulatory legal acts, the structure of which
will clearly define the procedure for registration,
acquisition of intellectual property rights and the
establishment of a clear mechanism for its use.
Taking into consideration the results of the analysis
conducted, such models and recommendations can
be used in the business environment of European
countries, which can qualitatively improve the
position of the corporate sector and create an
additional tax burden for the state. It is on these
principles that the German liberal model, which is
the most widespread in the European space,
operates.
The experience of the USA testifies to the
moderate state regulation and its wide
differentiation on the regional principle (distribution
by states), namely: the use of own approaches to the
protection of intellectual property, the
implementation of entrepreneurial activities and the
legitimacy of using social networks for business and
work with big data. In particular, the fact should be
taken into account that modern means of business
activity in social networks must be used on the basis
of current legal legislation, and they should be
presented in accordance with the rights of the
corporate policy of the social network itself. For
instance, it is necessary to investigate the aspects of
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DOI: 10.37394/232024.2023.3.2
Oksana Petrenko, Yevhenii Kostyk,
Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
E-ISSN: 2944-9006
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the manifestation of international legislation
regarding the interpretation of property rights,
intellectual property, etc. The most popular
networks, such as “Twitter”, “LinkedIn”,
“Facebook” should be considered as a key source of
business formation in social networks and the
implementation of certain activities.
Along with this, an important direction of further
studies should be the effectiveness of the influence
of state regulation on the business development and
the promotion of its digitalization. Such an approach
will be able to qualitatively ensure business activity
in social networks and improve its current position
in accordance with the economic state. In the
conditions of the development of digital
technologies and global geopolitical challenges, the
possibility of using and forming an effective means
of conducting business in social networks becomes
of particular importance. By the way, it is worth
investigating the quality of manifesting the state
regulation of business on the enterprise’s
commercial result. This is precisely why the relevant
use of the principles of state regulation will be able
to qualitatively improve the enterprise’s activity and
create a real mechanism of state presence in social
networks as a stabilizing factor.
7 Conclusion
Therefore, the conducted research testifies to the
features of developing the state regulation of
business in social networks in the international
environment. Currently, social networks have
become a high-quality tool for the implementation
of entrepreneurial activities and the possibility of
acquiring competitive advantages in the digital
environment. Such phenomena have been caused by
the emergence of the coronavirus pandemic and
subsequent rapid transformation to remote work.
The consequence of this was the popularization of
using the form of conducting business activities in
social networks.
The main factors of the state’s intervention in
business regulation in social networks are the
application of control and monitoring of operations
with personal data, commercial activity, and
protection of intellectual property rights and support
of intangible private rights. It is these areas that have
become key ones in the implementation of business
regulation, using social networks as a specific
platform for carrying out their activities and
allowing them to improve such activities in
accordance with its development.
The conducted analytical study characterizes the
legal form of state regulation in such countries as
China, the USA and Germany, as key centres of
development of their continental region. By virtue of
applying the expert evaluation methods regarding
state intervention in business activities in social
networks, it has been established that the largest
share of presence of the state is revealed in China,
which accounts for almost 9,2 out of 10 factors of
state presence. Such an assessment testifies to the
totalitarian control of business activities in social
networks and motivates business to search for new
communication platforms with customers and
restrains development. A positive phenomenon is
the provision of national strategic interests, clear
regulation of the rights and provisions of
entrepreneurs and business. The European model
has turned out to be the most flexible and liberal,
because on the basis of the conducted research, it has
been found that there is a strong state regulation only
in the intellectual property sector in Germany. Other
segments are weakly regulated, and a clear
mechanism for determining the status of a business
and forming further relations with its activities must
be established.
Based on the research conducted, it will be
important to carry out an analysis of the
effectiveness of using such legal regulatory
decisions and the possibility of improving the
mechanism of modern approaches to the
implementation of state regulation of business in
social networks. The formation of a legal
mechanism for the transfer of personal data in
international legislation and the improvement of the
system of using and analysing such data may be also
of particular significance.
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DOI: 10.37394/232024.2023.3.2
Oksana Petrenko, Yevhenii Kostyk,
Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
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Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
The authors equally contributed in the present
research, at all stages from the formulation of the
problem to the final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
The authors have no conflicts of interest to declare
that are relevant to the content of this article.
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DOI: 10.37394/232024.2023.3.2
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Olena Bieliaieva, Larysa Melnychuk,
Viktoriia Lola, Аnzhela Olkhovska
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