Top 10 operational impacts of the EU AI Act – Regulatory implementation and application alongside EU digital strategy

October 29th, 2024 | Posted by Claude-Etienne Armingaud in Europe | Intelligence Artificielle | Legislation - (0 Comments)

Launched in 2015, the EU’s Digital Single Market Strategy aimed to foster the digital harmonization between the EU member states and contribute to economic growth, boosting jobs, competition, investment and innovation in the EU.

The EU AI Act characterizes a fundamental element of this strategy. By adopting the first general-purpose regulation of artificial intelligence in the world, Brussels sent a global message to all stakeholders, in the EU and abroad, that they need to pay attention to the AI discussion happening in Europe.

The EU AI Act achieves a delicate balancing act between the specifics, including generative AI, systemic models and computing power threshold, and its general risk-based approach. To do so, the act includes a tiered implementation over a three-year period and a flexible possibility to revise some of the more factual elements that would be prone to rapid obsolescence, such as updating the threshold of the floating point operations per second — a measurement of the performance of a computer for general-purpose AI models presumed to have high impact capabilities. At the same time, the plurality of stakeholders involved in the interpretation of the act and its interplay with other adopted, currently in discussion or yet-to-come regulations will require careful monitoring by the impacted players in the AI ecosystems.

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14 Questions about the EU Data Act

August 27th, 2024 | Posted by Claude-Etienne Armingaud in Artificial Intelligence | Blockchain | Europe | IT | Legislation - (0 Comments)
  1. My company is not established in the EU. Should I really worry about the EU Data Act applying to my company?
  2. What are the operational impacts of the EU Data Act on my products‘ interface?
  3. My products are already on the market, can I still provide them as I am today?
  4. What data is in the EU Data Act scope?
  5. Does the EU Data Act provide for a harmonized framework for blockchain-based smart contracts?
  6. Who can request the sharing of data?
  7. How should data be made available?
  8. Are there any limitations on how the data can be shared?
  9. Can I invoke intellectual property right to forego the data sharing?
  10. Should the data be made available to public entities as well?
  11. Will I need to update my contracts as well?
  12. Will the data be required to stay in the European Union?
  13. When will all this become an operational reality for me?
  14. What are the EU Data Act penalties?
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Influenced by Influencers? Legislative Updates to Illegal Content in the Digital Age

June 10th, 2024 | Posted by Claude-Etienne Armingaud in France | Legislation | Non classé - (0 Comments)

Recent legislative updates have emerged in France, focusing on the intricate balance between national regulation and European Union directives —especially relevant to the evolving sector of commercial influence. The French law no. 2024-356, passed on 22 April 2024 (“DADDUE Law”), has granted the government a nine-month window to modify previous statutes to align with European standards.

The DADDUE Law will harmonize French national law (notably Law no. 2023-451 on the Regulation of commercial influence of 09 June 2023, see our previous post on this topic) with various European texts, including the e-commerce directive and directives like the DSA and SMA.

Among the articles set for revision are:

  • Article 1 regarding the definition of influence;
  • Article 2 on influencers’ agents;
  • Article 4 on prohibited sectors of promotion;
  • Article 5 on advertising disclosure requirements;
  • Article 8 on the framework of contracts between influencers and agents; and
  • Article 9 on insurance mandates for non-European influencers.

This underscores an initiative to refine the French national law on commercial influence in response to feedback from the European Commission.

The DADDUE Law will also repeal five articles within the prior law (articles 10, 11, 12, 15, and 18) that intersect with the Digital Services Act (DSA), on the obligations for hosting providers to implement alert systems for reporting illegal content and to comply promptly with legal and administrative injunctions to remove such content.

Furthermore, a government report will be presented within the next three months to address the necessary adjustments to Law no. 2023-566 on setting a digital majority age and battling online hatred, again drawing on remarks from the European Commission.

The path paved by the Law of 22 April 2024 requires a meticulous approach to legislative adaptation, ensuring that national regulations resonate with broader, collective European goals. This development is pivotal for professionals within the digital influence sphere and platforms hosting user-generated content, who must stay abreast of the changing legal landscape to sustain compliance and foster responsible online interactions.

First publication: K&L Gates Fashion Law Watch Blog – in collaboration with Kenza Berrada

Decree No. 2024-388 and Its Implications for Intermediation Platforms

June 10th, 2024 | Posted by Claude-Etienne Armingaud in France | Legislation | Privacy - (0 Comments)

Digital intermediation service platforms within the sectors of chauffeur-driven transportation and goods delivery have new responsibilities since the enactment of Decree no. 2024-388 on 25 Avril 2024. Operating under the framework established by Article L. 7345-1 of the French Labor Code, this Decree has initiated a systematic collection and transmission protocol for data concerning platform workers’ activities to the French Employment Platforms Social Relations Authority (“ARPE”).

This new system aims to bolster the production of statistical reports, as instrumental means to inform and transform the dialogue with the representative organizations.

Along these lines, platforms hold an equally important responsibility to revise their privacy notices. Transparency is paramount—the notices must clearly articulate these new data processing operations to the individuals concerned, ensuring that workers are fully aware of how their personal data is captured, utilized, and shared.

The implementation of Decree no. 2024-388 also signals a proactive step towards enhancing social dialogue tools within the affected sectors. Empowering ARPE to collect and leverage the data within its statutory power creates an opening for more informed policy-making and a more significant discourse between platforms, workers, and representative organizations.

The inception of the Decree manifests a shift towards a more transparent and regulated digital labor market. It requires those in authority—data controllers and intermediation platforms alike—to engage in a comprehensive update of operational protocols and privacy frameworks, thereby securing data subject rights while contributing to a broader socio-economic analysis. Such task will necessitate a keen understanding of both legal obligations and the ethical standards underscoring the digital economy.

The crucial evolution underlying the enactment of the Decree will require Platforms acting as data controllers to update in alignment their records of processing activities (RoPA) and meticulously document the nature, purpose, scope of data processed and the operational procedures for transferring requisite data to the ARPE.

First publication: K&L Gates Cyber Law Watch Blog– in collaboration with Kenza Berrada

France: Shrinkflation – New Transparency Requirements for Retailers

June 10th, 2024 | Posted by Claude-Etienne Armingaud in eCommerce | France | Legislation - (0 Comments)

A new regulatory landscape will reshape the food retail distribution in France starting from 01 July 2024, generalizing a mandatory obligation to inform consumers on product quantity changes and price trends. The decree, published on 04 May 2024, outlined crucial requirements for retailers, ensuring that consumers are not left in the dark when it comes to alterations in product sizes or volumes.

Indeed, the phenomenon, also known as “shrinkflation”—a reduction in weight or volume of prepackaged mass-market products and the upward trend in the price of the product per unit of measurement— must be clearly communicated to the consumer. This communication must detail the decreased quantity and any corresponding rise in unit price, allowing consumers to make informed decisions.

The mandate extends across both food and non-food commodities marketed in consistent amounts, such as weight or volume. Nevertheless, products sold in varying quantities or non-prepackaged formats do not fall under this umbrella.

Pursuant to Article L. 112-1 of the French Consumer Code (“FCC”), provides the legislative framework for these requirements, while Article L. 521-1 FCC empowers the French administrative authority Direction Générale de la Concurrence et de la Répression des Fraudes (“DGCCRF”) with policing power to enforce compliance.

Non-compliance carries substantial financial penalties—a maximum fine of €3,000 for individuals and €15,000 for corporations. Furthermore, the DGCCRF has the right to implement corrective measures and publish the infringement at the expense of the offending business, as per Article L. 521-2 FCC.

These provisions mark a significant step towards greater transparency in market sales, empowering consumers with information to navigate their purchases effectively amidst evolving market conditions. Retailers should prepare to integrate these changes into their operations, ensuring clarity and compliance as the decree takes effect on 01 July 2024.

First publication: pending – in collaboration with Kenza Berrada

EU AI Act [FULL TEXT]

May 21st, 2024 | Posted by Claude-Etienne Armingaud in Artificial Intelligence | Europe | Legislation - (0 Comments)

Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence and amending Regulations (EC) No 300/2008, (EU) No 167/2013, (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1139 and (EU) 2019/2144 and Directives 2014/90/EU, (EU) 2016/797 and (EU) 2020/1828 (Artificial Intelligence Act)

(Text with EEA relevance)

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🇺🇸 Regulating AI Part-IV: The EU AI Ac – The Expected International Impacts of the First Comprehensive AI Regulation

February 19th, 2024 | Posted by Claude-Etienne Armingaud in Artificial Intelligence | Conference | Europe | Intelligence Artificielle | Legislation | Privacy - (0 Comments)

Part IV of our series “Regulating AI: The Potential Impact of Global Regulation of Artificial Intelligence” will focus on recent developments in general availability of AI and how generative AI solutions are leading regulators, at a global level, to consider legal frameworks to protect both individuals affected by AI and digital sovereignty.

The program will feature a panel addressing the EU AI Act, on which a preliminary political agreement was reached last December and unanimously approved by the ambassadors of the 27 countries of the European Union on 2 February 2024, prior to its upcoming final votes.

Like the GDPR before it, the EU AI Act will be a trailblazing piece of legislation which will impact companies at global level.

Our panelists will discuss the consequences of the EU AI Act on companies contemplating the provision of AI solutions in the EU market or leveraging AI in the EU, with a special focus on non-EU companies.

Additional topics in our Regulating AI — The Potential Impact of Global Regulation of Artificial Intelligence series include:  

  • Part I – 13 September 2023 (EU / U.K.) – View Recording
  • Part II – 7 December 2023 (Asia-Pacific Region: China, Hong Kong, Singapore, Japan) – View Recording
  • Part III – 12 December 2023 (United States)

Register or watch the replay here.

Access the full text of the EU AI Act here.

🇺🇸 Onetrust: AI Governance Masterclass – The EU AI Act

February 1st, 2024 | Posted by Claude-Etienne Armingaud in Artificial Intelligence | Conference | Europe | Legislation | Non classé | Privacy - (0 Comments)

Join our session as we explore the implications of the EU AI Act. In this webinar, we’ll:

Featured speakers

Yücel Hamzaoğlu​

Partner
HHK Legal

Melike Hamzaoğlu

Partner
HHK Legal

Claude-Étienne Armingaud​

Partner
KL Gates

Noshin Khan​

Ethics & Compliance, Associate Director
OneTrust​

Harry Chambers

Senior Privacy Analyst
OneTrust

Register here.

New EU AI Rules Will Have Global Impact

January 16th, 2024 | Posted by Claude-Etienne Armingaud in Artificial Intelligence | Europe | Interview | IT | Legislation | Press - (0 Comments)

Quoted in Agenda article “New EU AI Rules Will Have Global Impact“:

The scope of the EU AI Act will apply to all companies whose AI systems are used or affect EU-based individuals, according to Claude-Etienne Armingaud, a partner in K&L Gates’ Paris office and a member of the law firm’s technology transactions and sourcing practice group.

Due to its breadth, global companies developing AI systems, most of which are headquartered either in the U.S. or in China, will face two options: “Get in line with the EU AI Act or abstain from the EU market,” Armingaud said.

Some companies threatened to exit the European market after the EU’s General Data Protection Regulation, or GDPR, became effective in 2018, but many didn’t actually follow through, according to Armingaud.

“So, without a doubt, all companies dabbling in AI will need to comply if they truly want to remain global,” he said.

Agenda – New EU AI Rules Will Have Global Impact

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Gentle Reminder: DSA Obligations Will Apply to Online Intermediary Services Starting 17 February 2024

January 4th, 2024 | Posted by Claude-Etienne Armingaud in Europe | internet | IT | Legislation - (0 Comments)

It has been some time already since the EU Digital Services Act (Regulation 2022/2065, DSA) was published, and since then, the discussions about Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) have dominated the media coverage (see initial press release of European Commission here and coverage about VLOPs/VLOSEs petitions against categorization as VLOPs/VLOSEs here and here). 

Smaller online service providers tend to forget that they may also face some new obligations under the DSA from 17 February 2024 onwards, but would be well advised to comply to avoid significant sanctions (e.g., fines of up to 6% of the global annual turnover or periodic penalty payments up to 5% of the global average daily turnover). 

The following paragraphs provide a brief summary of the most relevant content of the DSA and will help online service providers to understand:

  • If and to what extent the DSA applies to them;
  • What specific obligations exist; and
  • What sanctions may be applied in case of breach.
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