Subtitle

A Government-Focused Approach to Regulatory Capture in the Platform Economy Comparing California with British Columbia

Document Type

Article

Publication Date

2026

Abstract

Recent scholarly work on regulatory capture in the platform economy accounts for the political role and power wielded by app-based firms aiming to reform the existing legal environment to favor their low-cost labor business models. This article adds to scholarly perspectives on the platform economy by shifting the focus to government actors, the role of narrative in communicating with the public, and institutional constraints which may hamper the government’s ability to provide a cogent rationale for opposing or implementing legal change. The article’s central contribution is underscoring the role the government plays in facilitating or preventing regulatory capture. To that end, it illuminates the state’s role in de-standardizing work – making work more precarious and insecure for workers – or preventing the degradation of workers and working conditions. The article studies two North American jurisdictions considered pro-worker – California (US) and British Columbia (CA) – and assesses government reactions to the regulatory challenges posed by app-based transportation and delivery firms.

Three theoretical lenses assist in interrogating government actions and regulatory outcomes: 1) the authors’ original typology of the functions of and tools used by the state to either shore up or weaken conditions at work; 2) discursive institutionalism, which highlights the role and power of ideas and institutions in public policy creation; and 3) decent work, the human rights concept emphasizing, among other things, the promotion of fair wages, safe and healthy working conditions, and the right to organize and bargain collectively.  Despite confronting similar regulatory challenges, the study discerns significant differences in government actions, communication, and regulatory outcomes in California and British Columbia. Regarding app-based workers, the latter is moving towards recognizing decent work while the former drifts away from it. These findings underscore the pivotal role the state plays in protecting or undermining decent work, an important insight as platform firms test the resilience of existing labor standards around the world.

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