1. Economic activities with a high potential growth impact from digital technologies are often protected from foreign or domestic competition in developing countries. 2. The potential impact of the internet on fi rm productivity is often highest for economic activities thattypically have higher barriers to competition. 3. These sectors include utilities that are often natural monopolies - which are more diffi cult to regulate. 4. Overall - countries that pursue procompetitive regulations in most sectors grow faster - as fi rms in these countries invest in digital technologies and use them more effectively. 5. But they also include banking - insurance - transport - retail trade - and some professional services - which are often protected by regulations from more foreign or domestic competition in developing countries.