On December 8, 2023, the EU finally agreed on the world’s first comprehensive legal framework on AI: the AI Act. EU lawmakers reached a political agreement on a series of controversial issues after record-long negotiations. They are expected to formally adopt the agreed text within the next couple of months. If adopted, the AI Act will ban certain AI systems, regulate general purpose AI (GPAI), impose heavy obligations on high-risk AI systems, subject to high fines, and support innovation through regulatory “sandboxes.” The AI Act will have an extraterritorial reach. Being the first law of its kind globally, the AI Act has the potential to establish a benchmark for AI regulation in other regions, just as the EU General Data Protection Regulation (GDPR) has accomplished.Continue Reading EU Lawmakers Reach Political Agreement on the AI Act
Roberto Yunquera Sehwani
Formal Publication of the DMA and Timelines for Compliance
On October 12, 2022, the EU Digital Markets Act (DMA) was published in the Official Journal of the European Union (see here), giving clarity as to when the new rules will apply. The DMA will enter into force on November 1, 2022, and it will become fully applicable in May 2023. At that point, the gatekeeper designation process will start, and once designated, gatekeepers will have six months to comply with the DMA. This means that the DMA will only be fully enforceable against companies in spring 2024, likely around March.
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EU Parliament and EU Council Approve the DMA
On July 18, 2022, the EU Council formally adopted the EU Digital Markets Act (DMA), following approval by the EU Parliament earlier this month (the press releases are available here and here). The final DMA text as approved is available here.
As next steps, the final text of the law will be signed by the Parliament and Council Presidents and will be published in the EU Official Journal. The Publications Office still needs to make some further technical edits to the text before it can be published, including to clarify the date of application (i.e., add a specific date, given that the text currently states “[6 months after entry into force]”). We expect that final publication in the EU Official Journal will take place this fall.
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EU to Open San Francisco Office to Advance Its Digital Regulation Agenda
In anticipation of its new powers to regulate the largest digital platforms, the EU is planning to open a San Francisco base to engage with these companies, which are based mostly in Silicon Valley and the broader Bay Area. The EU’s plans to open its first representative office on Californian soil reflects the EU’s intent to remain at the forefront of digital regulation initiatives worldwide.
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EU Reaches Political Agreement on Additional New Rules for Digital Platforms in the Digital Services Act
The EU is close to finalizing the adoption of the Digital Services Act (DSA), which will impose new obligations on digital platforms regarding content moderation, due diligence for illegal content, and advertising transparency. It will entail significant changes to existing EU law in these areas and will impose substantial new compliance burdens on companies in regard to online content.
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EU Parliament and Council Take Next Steps to Advance Major New Rules for Digital Platforms
The EU Parliament and the EU Council recently adopted their respective versions of the Digital Markets Act (DMA) and Digital Services Act (DSA), which intend to create new antitrust-related (DMA) and regulatory (DSA) rules applicable to digital platforms.1
The adoption of the draft amendments by the EU Parliament and the EU Council constitutes a critical step towards final adoption of these laws. Now, the EU Commission (EC), Parliament, and Council are undergoing negotiations (so-called “trilogues“) to agree on a final version of the laws. The institutions could reach an agreement on the DMA and the DSA within the coming months, but it may take some time before it is enacted.
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