This Week’s Tech Law News Round Up

September 22, 2023


CMA publishes proposed principles to guide competitive AI markets and protect consumers

The Competition and Markets Authority have published a report setting out their proposed principles underpinning how they will scrutinise the competition law and consumer protection aspects of developing AI markets. It follows a review of foundation model AIs undertaken this year. 

The proposed principles are – in summary:

  • Accountability – FM developers and deployers are accountable for outputs provided to consumers.
  • Access – ongoing ready access to key inputs, without unnecessary restrictions.
  • Diversity – sustained diversity of business models, including both open and closed.
  • Choice – sufficient choice for businesses so they can decide how to use FMs.
  • Flexibility – having the flexibility to switch and/or use multiple FMs according to need.
  • Fair dealing – no anti-competitive conduct including anti-competitive self-preferencing, tying or bundling.
  • Transparency – consumers and businesses are given information about the risks and limitations of FM-generated content so they can make informed choices.

The CMA will now undertake a programme of engagement with stakeholders, in the UK and internationally, to develop these principles further and will report back with an update, including on how the principles have been received and adopted, in early 2024

CMA gives provisional clearance to Microsoft / Activision deal

The Competition and Markets Authority has given provisional go ahead for Microsoft to complete the purchase of games developer, Activision. The deal was blocked earlier this year but Microsoft submitted a restructured transaction in August for the CMA to review in which it said the cloud gaming rights will be sold to a third party – Ubisoft – in advance of the purchase. In the CMA’s view this would mean Ubisoft would replicate the role Activision would have played in the market as an independent player. The CMA has now opened a consultation, until 6 October, on Microsoft’s proposed remedies and will then make a final decision.

EU Law

EDPB and EDPS adopt joint opinion regulation to streamline cross-border enforcement needed

The EDPB and the EDPS have adopted a joint opinion on the European Commission’s Proposal for a Regulation on additional procedural rules for the enforcement of the GDPR. The proposal aims to accelerate investigations and the delivery of remedies for individuals in cross-border cases and follows a wish list sent by the EDPB to the European Commission in October 2022.

Recommendations include; making sure concerned supervisory authorities (CSAs) are more involved in the different steps of the procedure to avoid possible disputes at a later stage; ‘preliminary findings’ addressed to the parties under investigation and the ‘preliminary view’ to reject the complaint should be shared with CSAs before they are submitted to the parties under investigation or to the complainant; time limits should be defined for certain procedural steps (though, extendable where justified) to allow faster enforcement.