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.

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

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.
(more…)

New ranking in Who’s Who Data 2024 as Recommended in the Data Privacy & Protection and Information Technology categories.

The UK’s Information Commissioner’s Office (the “ICO”) has recently sent warnings to the UK’s most visited websites to inform them that they may face enforcement action if they do not make changes to their cookie banner to ensure compliance with UK data protection law. For example, some websites warned by the ICO do not provide their user with a fair choice on tracking for personalised advertising. This position aligns with the EU’s stance, noting France (see prior Alert here).

The ICO’s actions are part of a larger commitment to ensure individuals’ privacy rights are upheld by companies active in the online advertising industry. Publishers receiving a warning only have 30 days to amend their websites in line with UK GDPR. As further incentive for publishers to get compliant, the ICO has also warned that it will publish the details of those websites that have not made the requested changes in January. Such publicity may be even less welcome than the potentially large fines associated with breach of the data protection framework.

The statement made by the ICO highlights once again the importance for companies to review how cookies are used on their websites and how their cookie banners, along with the cookie consent management solution, are displayed. To be compliant, websites must make it as easy as possible for users to reject all advertising cookies. Personalized advertising can be compliant as long as it is based on the user’s consent. In case users reject all advertising cookies, websites can only show general adverts that are not tailored to the users’ browsing history. Consequently, websites should display a cookie banner that makes it as easy for users to reject cookies, as it is for them to accept cookies.

The ICO’s guidance in relation to cookie banners can be found here, which may need to be further updated with the newly presented Data Protection and Digital Information Bill.

First publication: Cyber Law Watch Blog with Sophie Verstraeten

On 18 October 2023, the French National Assembly voted in favour of a law aiming to secure and regulate the digital space (“Loi visant visant à sécuriser et réguler l’espace numérique” or “SREN”), otherwise called the “Sorare Act.” This new development marks a first step towards the establishment of a regulatory framework dedicated to games integrating non-fungible tokens (NFTs) and monetisation models based on digital assets.

These new provisions are aimed at the creation of a new category of games under French law called games with monetisable digital objects (“jeux à objets numériques monétisables” or “JONUM”). This new regime will enter into force ‘on an experimental basis and for a period of three years’ from the promulgation of the law and will authorise Web3 games with monetisable digital objects (including NFTs).

The Sorare Act defines JONUMs as “game elements, which only confer on players one or more rights associated with the game, and which may be transferred, directly or indirectly, for consideration to third parties,” while excluding digital assets covered by 2° of Article L. 54-10-1 of the French Monetary and Financial Code.

France is one the first jurisdictions in the world to create a specific regime for companies using NFTs as part of their games and the objective is to provide certainty to the industry.

Please reach out to our team if you need further information on this new development. 

First publication: K&L Gates Hub, in collaboration with Lucas Nicolet-Serra

A bit of Jyn Erso to wrap up the week!

New episode of K&L Gates Gateway to Privacy is out, and this time with our first external guest — our dear friend Arya Tripathy joins us with Whitney McCollum and Camille Scarparo for a deep dive into India’s new data protection law, the Digital Personal Data Protection Bill, 2023.

What’s to know, what’s to expect? Listen and find out!

Post-Brexit EU businesses have needed to rethink how they approach showing compliance with a host of regulations, managing international data transfers and building trust with data subjects. Having to comply with the GDPR, prepare for other data protection bills, all while continuing to comply with the EU-GDPR as well as a host of global regulations means businesses might look to certification as a common system for adequacy as a one-stop shop, when addressing the overlaps and more crucially closing the gaps on their privacy compliance programs.

Featured speakers:

  • Noshin Khan, Senior Compliance Counsel, Ethics Center of Excellence, OneTrust 
  • Claude-Étienne Armingaud, Partner, K&L Gates

Register here.

This panel session will focus on the growing concern over the ethical use of Artificial Intelligence (AI) and its impact on privacy. The panelists will discuss the role of accountability in developing responsible AI practices and the potential risks of AI systems when not properly regulated. They will also explore the importance of transparency and the need for data privacy regulations in the development and deployment of AI technologies. The session will provide insights into best practices for AI governance and how organizations can ensure the ethical use of AI while still benefiting from its potential.

Co-Panelists:

#AI #ArtificialIntelligence #gdpr #ethics #dataprotection #regulation #insights23 #pecb #Privacy #Accountability

Access the full text of the EU AI Act here.

The UK Government has laid adequacy regulations before Parliament that, once in force from 12 October 2023, will permit use of the UK – US “Data Bridge” as a safeguard for personal data transfers from the UK to the US under Article 44 UK GDPR.

The UK – US “Data Bridge,” AKA the UK Extension to the EU – US Data Privacy Framework (Framework), allows UK organisations to transfer personal data to organisations located in the United States that have self-certified their compliance with certain data protection principles and appear on the Data Privacy Framework List. This scheme, administered by the US Department of Commerce, provides a redress mechanism for data subjects in the European Union to enforce their rights under the EU General Data Protection Regulation, in relation to a participating US organisation’s compliance with the Framework, and to US national security agencies’ access to personal data. This new redress mechanism attempts to prevent a challenge to the Framework similar to the Schrems II case, which invalidated the Framework’s predecessor EU – US Privacy Shield. Despite this, the Framework has already been the subject of a short-lived case at the Court of Justice of the EU, and there may be more legal challenges.

Alongside the adequacy regulations, the UK government published an analysis of the US laws relating to US national security agencies’ access to the personal data of European data subjects. This analysis effectively completes the international data transfer risk assessment (TRA), which UK organisations have been required to carry out before transferring personal data to the US. It is likely that UK organisations relying on the other Article 44 UK GDPR safeguards, such as the International Data Transfer Agreement, may also rely on this analysis in place of completing a TRA.

First publication: K&L Gate Cyber Law Watch Blog in collaboration with Noirin McFadden