Democracy, firms, and cyber punishment: what cyberspace challenge do democracies face from the private sector?

Abstract

ABSTRACTI explore four sets of explanations on what makes it hard for democracies to penalise hackers for their digital actions. My analysis reveals that of the four challenges, two are more compelling than the others. First, scholarship suggests that democracies seek to meet the expectation to comply with international rules of engagement and refrain from aggressive cyberspace behaviour. Second, some argue that democracies face strong challenge from constituents who fear escalation. My investigation shows that these challenges are less severe than the following two. First, democracies struggle with complications that arise out of particular interactions that private actors engage on their behalf. Second, democracies face pressure from firms that hesitate to be part of activities that cause legal and financial consequences. States may also hesitate when they anticipate lawsuits by victims and firms implicated in hostile actions. In sum, democracies struggle with punishment strategy not so much because of behavioural ethics or escalation fear as consequences of having technology firms involved in hostile operations.