Expert Analysis

• Report On UK Investment Act Offers Welcome Insights

  

  The U.K. government's recent report on the National Security and Investment Act's first full year of operation is to be applauded for disclosing more information on the act's notification system than was required, enabling a better understanding of what has taken place and what the next year may hold, say Andrea Hamilton and Ajal Notowicz at Milbank.

• Loot Box Regulation In Europe Could Benefit From Reform

  

  In light of recent court rulings concerning video game loot boxes, authorities across Europe are taking increasing note of this mechanism, yet with a coordinated approach, appropriate regulations and a focus on enforcement, there is no need to issue a ban, say Elia Kim and Hazal Kirci at Simmons & Simmons.

• Preparing For M&A Under The Foreign Subsidies Regulation

  

  The EU Foreign Subsidies Regulation introduces requirements that companies operating in the region must consider in M&A transactions, and any foreign financial contributions received by a target should be checked during the due diligence stage, with specific provisions for commission approval if a notification requirement is triggered, say Hendrik Viaene and Stéphane Dionnet at McDermott.

• Important Generative AI Considerations In M&A

  

  The recent surge of interest in generative artificial intelligence and its use of machine learning algorithms means there are novel concerns as well as inherent risks for those engaging in M&A activity, and acquirers should pay careful attention to a target’s scope of ownership and licensing rights, say attorneys at Davis Polk.

• Why Data Protection Compliance May Cost The Environment

  

  Companies thinking about environmental, social and governance goals may conclude that using good data ethics is a win-win, but aligning data protection principles and carbon footprint reduction is not always straightforward and compliance efforts may be a trade-off between privacy, opportunity and the environment, says Alice Wallbank at Shoosmiths.

• Pension Trustee Case Could Lead To Fossil Fuels Divestment

  

  While the recent Court of Appeal case McGaughey v. Universities Superannuation Scheme attempts to link fossil fuel investment by trustees to significant risk of financial detriment, it is concerning that two out of 470,000 scheme members could be permitted to bring a claim without ensuring that other members are represented, says Anna Metadjer at Kingsley Napley.

• Outbound Screening May Be Next EU Investment Control Step

  

  Following the European Commission’s recent commitment to reduce dependence on third countries by developing an outbound investment review mechanism, it will be interesting to see whether member states will take a united stand or whether national security interests will trump such an approach, say Christoph Barth and Neil Hoolihan at Linklaters.

• Barclays Ruling Narrows Banks' Fraud Recovery Duty

  

  The U.K. Supreme Court's recent ruling in Philipp v. Barclays decided against the so-called Quincecare duty's application in authorized push payment fraud, shining light on how banks should balance their responsibility to follow customers' instructions against making reasonable inquiries, say lawyers at Ontier.

• Green Loans May Be Hungary's Path To Sustainable Financing

  

  Fueled by a rising trend in the use of green loans, Hungary is making impressive progress in its journey toward achieving a net-zero future, although the development of social and sustainability-linked loans is still a work in progress, say Gergely Szalóki and Bálint Bodó at Schönherr.

• AI Act Issues To Watch As EU Legislators Negotiate

  

  The EU is working to adopt the world's first comprehensive regulatory framework for artificial intelligence, but the AI Act proposals from the European Commission, Parliament and Council currently differ on law enforcement use of AI, classification of AI systems and related compliance obligations, say Alexander Roussanov and Lazarinka Naydenova at Arnold & Porter.

• How The Law Must Change To Accommodate Digital Assets

  

  The Law Commission's recent report shows that the common law of England and Wales is well suited to adapt to digital assets, and with targeted statutory reform to unlock the possibility of recognizing property in intangible things, the U.K. can become an ideal hub for parties to transact with emerging technology, says Sarah Green at the commission.

• Tackling Global Inflation Is A Challenge For Antitrust Agencies

  

  Recent events have put pressure on antitrust agencies to address the global cost-of-living crisis, but the relationship between competition and inflation is complex, and with competition agencies’ reluctance to act as price regulators, enforcement is unlikely to have a meaningful impact, say lawyers at Linklaters.

• Leading THC Case Lends Support To UK Legalization Debates

  

  Even though the Court of Appeal's ruling in R v. Margiotta on legally importing and supplying low THC cannabis cannot be relied on post-Brexit, it provides powerful arguments for the legalization of supply in low THC cannabis, including the fact the product is not considered a narcotic drug, say Robert Jappie at Fieldfisher and Josh Normanton at Trinity Chambers.

• Key Findings From EBA's Money Laundering Report

  

  The European Banking Authority's recent report on money laundering and terrorist financing risks, highlighting that payment institutions may be ineffectively assessing or managing those risks, makes clear that addressing its findings will be essential to protecting the European Union from financial crime, say lawyers at Hogan Lovells.

• Cos. Using AI Should Note Regulators' Privacy Concerns

  

  The past year’s unprecedented explosion in the use of artificial intelligence tools has sparked fears over the way personal data may be collected and treated, and organizations adopting AI will need to ensure that they have a lawful basis to use data collected in this way, says Paula Williamson at Excello Law.