UK law
CMA consults on draft rules for digital markets competition regime levy
The Competition and Markets Authority (CMA) is seeking views on the approach to a levy for the digital markets competition regime and draft strategic market status (SMS) levy rules under Section 110 of the Digital Markets, Competition and Consumers Act 2024. Section 110 gives the CMA powers to charge a levy to firms designated with Strategic Market Status (SMS Firms). The levy only applies to SMS firms, that is firms satisfying the turnover condition1 and which are found by the CMA, after a nine-month investigation, to have Substantial and Entrenched Market Power and a Position of Strategic Significance in a particular digital activity. Because the Act does not prescribe how the SMS Levy should be allocated between SMS Firms, the consultation focuses on the options the CMA has considered and its proposed methodology for how to apportion the SMS Levy among SMS Firms. The consultation ends on 3 July 2025.
FCA issues consultations on stablecoins and crypto custody
The FCA has published proposals for issuing stablecoins, crypto custody and financial resilience of cryptoasset firms, aimed at supporting a safe, competitive sector. The FCA’s proposals would require firms providing crypto custody services, who have responsibility for keeping consumers’ crypto safe, to ensure they are effectively secured and can be easily accessed at any time. The proposals also seek to reduce the likelihood and impact of firm failures across regulated firms undertaking the activities of stablecoin issuance and cryptoasset custody. In addition ,the FCA has proposed prudential rules and guidance for issuing qualifying stablecoins and safeguarding qualifying cryptoassets. The proposals set out the risks the FCA wants to prevent, the outcomes it wants for consumers and markets and the proposals it seeks to implement. Its proposals set appropriate standards that are proportionate, and which it will expect firms to meet. It says that its regime will bring certainty, and firms and consumers will be able to place trust in qualifying stablecoins.
Lisa Nandy gives speech to Media & Telecoms 2025 and Beyond Conference
Culture Secretary Lisa Nandy has given a speech to the Media & Telecoms 2025 and Beyond Conference. Among other things, she talked about the issue of copyright and AI and said “But I do want to pause for a moment on AI, which has been the subject rightly of so much debate, not just here, but across the world. We are determined to find a way forward that works for the creative industry and creators, as well as the tech industries. Creators are the innovators, fundamental to our economic success in the future. And with my colleague Peter Kyle, we’re working together to find a better solution. The issue of AI and copyright needs to be properly considered and enforceable legislation drafted with the inclusion, involvement and experience of both creatives and technologists. And so as soon as the Data Bill is passed by Parliament, Peter and I will begin a series of roundtables with representatives from across the creative industries to develop legislation, with both houses of Parliament given time to consider it before we proceed. We approach you with no preferred option in mind. During the consultation we have heard you loud and clear that what works for one part of the creative industries doesn’t work for another. Now you know as well as I do that in this international landscape, there are no easy solutions, but this government is determined to work with you to find a solution with transparency and trust as its foundation. We have heard you loud and clear.” The Data Use and Access -Bill remains in the ping-pong stage in the UK parliament and it remains to be seen if it will pass in this session,
EU law
European Commission proposes Council Decision to conclude AI Framework Convention
The European Commission has published a proposal for a Council Decision to conclude the EU’s adoption of the Council of Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law. The proposal says that the Convention will be implemented in the EU via the AI Act. The European Parliament will have to give its consent before the Council can formally adopt the Decision. Separately, there are rumours that the European Commission is considering postponing when the AI Act comes into application. This follows controversy about the AI models code of practice, industry concern, and delays in the development of technical standards. There are precedents for “stop the clock” initiatives and so the Commission might delay enforcing the law while it makes some amendments to simplify certain provisions.
EU sets out its International Digital Strategy
The EU has set out its International Digital Strategy, which has the following objectives: to expand international partnerships, by deepening existing Digital Partnerships and Dialogues, establishing new ones, and fostering collaboration through a new Digital Partnership Network, the EU will strengthen its tech competitiveness and security as well as that of its partners; to deploy an EU Tech Business Offer, by combining EU private and public sector investments to support the digital transition of partner countries, incorporating components such as AI Factories, investments in secure and trusted connectivity, Digital Public Infrastructure, cybersecurity, and more; and to strengthen global digital governance, by promoting a rules-based global digital order, in line with the EU’s fundamental values.
