In this month’s edition of our Digital Law Alert series, we once again cover a selection of important digital law news alerts from across the UK and the rest of Europe.
DORA: the why, what and then?
In a recent report our Tech & Sourcing team provides an overview of key provisions of the EU Digital Operational Resilience (DORA) bill, which includes the requirement to implement governance frameworks to effectively manage ICT risks, as we Let’s look at what measures these financial services firms and their service providers who may be subject to the provisions of the law should take in preparation for DORA implementation.
European Parliament adopts AIDA’s AI recommendations
The European Parliament has adopted the final recommendations of its Special Committee on Artificial Intelligence in the Digital Age (AIDA). In the adopted text (available here), AIDA recommends that the public debate around the use of AI focus on its enormous potential to complement human work. Noting that the EU has fallen behind in the global race for technological leadership, AIDA comments that there is a risk that standards for the use of AI will be developed outside the EU via less democratic influences. The adopted report identifies policy options that could, if implemented, contribute to mitigating climate and environmental change and improving the overall quality of life, among others.
UK government invites comments on enhanced security and privacy requirements for app developers and sellers
Following the publication of a report by the National Cyber Security Center (NCSC) on the threats posed to consumers by app stores, due to issues such as the availability of fraudulent apps containing malware or apps whose security is insufficient to prevent piracy, the UK Department for Digital, Culture, Media & Sport (DCMS) has launched a call for views from the tech industry on how privacy and security recruitments for app stores could be improved. Comments are requested on the proposed code of practice formulated to address these risks. The consultation is open until June 29, 2022.
Creation of a new Digital Markets Unit by the UK Government
The creation of a new Digital Markets Unit (DMU) within the UK Competition and Markets Authority (CMA) has been announcement, which will work closely with the UK Government to help it put in place its new pro-competitive regime, drawing on input from the Digital Markets Task Force as appropriate. The DMU will not have statutory status at this time, although new legislation to allow this is expected. Until then, the DMU will operate within the CMA on a non-statutory basis. The DMU is intended to focus on the activities of the most powerful digital companies with a view to promoting increased competition and innovation in the markets operated by these entities, while balancing this with the need to protect consumers and businesses against unfair practices.
Emerging Definitions: Capturing the Essence of Artificial Intelligence
Lawyers love a definition. They give the illusion of certainty, although almost every word has multiple nuanced meanings. Definitions in legislation and contracts are critically important and will delineate the scope of obligations or the landscape of prohibited conduct. These challenges are precisely present in the definition of the AI system in the latest draft EU AI regulation at the time of writing. Members of our DLA Piper AI Task Force are considering more here.
ESMA Working Paper on Financial Stability Risks of Cloud Outsourcing
The European Securities and Markets Authority (ESMA) has published a discussion paper on the financial stability risks associated with cloud outsourcing. The paper notes that while the cloud can increase the resilience of financial services firms, there are substantial risks. For example, a single outage could generate concurrent outages at the enterprise level due to cloud provider concentration risk. In the working document, ESMA proposes mitigation measures to deal with this risk. Read more in our blog Technology’s Legal Edge.
UK digital watchdogs target algorithms and online technologies in plans for future regulatory collaboration
The UK Digital Regulation Cooperation Forum (DRCF) has published a calls for views on the benefits and risks of algorithmic processing uncovered in his research and set out his action plan for the coming year. In our recent articlewe provide an overview of the DRCF’s formation and goals and summarize both the DRCF’s research on algorithmic processing and its workplan for the coming year. Opinions on research are invited until June 8, 2022, with comments on specific research welcome throughout 2022.
EU Digital Services Act: political agreement reached on terms
Another important step has been taken towards achieving the EU’s ambitious goal objective to make Europe “fit for the digital age”, with the European Commission and EU Member States having recently reached political agreement on the terms of the Digital Services Act (DSA). While the recently approved Digital Markets Act (DMA) aims to curb the power of tech giants, the DSA aims to create a safer digital space for all users of online services, including requiring platforms to remove illegal content quickly. Read more on our Media, Sport and Entertainment Insights blog.
Call for evidence to inform the UK’s DCMS committee inquiry into connected technologies
A request launched by the DCMS Committee “Connected tech: smart or sinister? explores how connected devices such as smart speakers, virtual assistants and wearable technology are reshaping life in the UK as they become more widespread. The answers to the questions posed in the call for evidence document are invited by anyone before June 23, 2022. The questions focus on user experience and safety and ask for example whether or not there are groups in society that could particularly benefit or be vulnerable in due to the increasing prevalence of smart technologies, such as elderly people with disabilities.