Year: 2023

The European Union Is About to Swing a Heavier Club at Big Tech.

The EU’s strict privacy laws have faced lax enforcement, but new regulations will hold regulators accountable for investigating Big Tech companies. Ireland, with the most tech firms, has been slow in processing cases. However, the European Commission’s new requirement for data-protection investigations will increase scrutiny and make regulators more accountable. This change is crucial for countries like Ireland, the Netherlands, Luxembourg, and France, where major tech firms are based. Privacy advocates have filed complaints against companies and regulators for not being strict enough. The European Ombudsman will now scrutinize national watchdogs, ensuring better enforcement against Big Tech.

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EU Directives on AI Liability and Product Liability

The European Commission has proposed new directives to address liability issues related to AI systems in the EU, aiming to provide legal certainty and adapt existing rules. The proposed AI Act, AI Liability Directive (ALD), and updated Product Liability Directive (PLD) will significantly impact developers, manufacturers, and suppliers in the EU. The directives establish strict liability for harm caused by defective AI products and introduce a presumption of causality against developers, providers, or users of AI systems. They also introduce a disclosure obligation for high-risk AI systems. The directives are subject to approval and will be incorporated into local laws within two years.

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The EU Council approves its revisions to the draft EU Regulation on Artificial Intelligence

The Council of the EU has adopted a common approach to the AI Act, ensuring AI systems in the EU are safe and comply with fundamental rights. The revised draft is more business-friendly than the EC plan, with limited scope and reduced penalties for SMEs. Europe prioritizes AI regulation, with the AI Act working alongside existing regulations. The EC proposed the AI Act in 2021, covering all EU providers and users of AI systems. The Council has made changes to the scope, definition, prohibited and high-risk AI practices, transparency and accountability, training data and bias detection, and fines for SMEs. The next step is for the Parliament to amend the Proposal before trilogues can begin, with the law potentially entering into force by the end of 2023.

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