UK law
CMA enters into Memorandum of Understanding with Ofcom in relation to Digital Markets, Competition and Consumers Act 2024
The CMA has published a Memorandum of Understanding that it has entered into with Ofcom in relation to the digital markets competition regime in Part 1 of the Digital Markets, Competition and Consumers Act 2024.
Ofcom proposes update to general information gathering policy
Ofcom has announced a proposed update to its general information gathering policy, reflecting new processes and additional powers acquired since 2005. The updated policy will set out how it exercises its statutory information gathering powers under various legislation, including the Communications Act 2003 and Postal Services Act 2011. Ofcom has clarified that the policy will not apply where there is separate guidance, such as for the Network and Information Systems Regulations 2018 and the Online Safety Act 2023.
CMA could approve Synopsys / Ansys merger if competition concerns are resolved
The Competition and Markets Authority has found that Synopsys’ proposed purchase of Ansys for $35 billion could reduce competition in the supply of certain semiconductor chip design and light simulation products in the UK. Synopsys and Ansys are two major suppliers in the semiconductor chip design and light simulation software sector and their products help a broad range of customers and industries. Having assessed the evidence, the CMA believes the merger could reduce choice for customers, which tend to be major companies that operate globally and in the UK, that rely on these software products. This could lead to a loss of innovation, lower quality software and/or higher prices which may then be passed onto UK businesses and consumers. During its Phase 1 investigation, the CMA examined the impact of the merger across a wide range of semiconductor chip design and light simulation software markets, looking at the extent to which Synopsys and Ansys currently compete or may do so in the future. The CMA found that while the products the companies offer are largely complementary, the deal could reduce competition in the supply of three software products where Synopsys and Ansys have strong market positions and compete closely with one another. The CMA’s concerns cover global register transfer level power consumption analysis, which is used to check how much power a chip consumes and requires to function; global optics software and global photonics software, which are used to design and model light-related products. Synopsys and Ansys can now submit proposals to address the CMA’s concerns. If suitable proposals are not submitted, the CMA will progress to an in-depth Phase 2 investigation.
EU law
European Commission publishes second draft of General-Purpose AI Code
The European Commission has issued the second draft of the General-Purpose AI Code of Practice, incorporating feedback from the first draft published on 14 November 2024. It contains measures for systemic risk assessment and mitigation, including model evaluations, incident reporting, and cybersecurity obligations. The Code structure has been adapted to outline objectives, commitment, and measures, (replacing the previous draft’s structure consisting of goals, measures, and sub-measures), and include preliminary examples of Key Performance Indicators (KPIs). It also seeks to clarify the obligations in the AI Act, in particular measures that can be taken to meet those obligations. The need to balance clear commitments with the flexibility to adapt as technology evolves has been stressed. The need for further development of ecosystems for AI governance and risk management has been stressed. It remains a work in progress. The third draft of the Code of Practice can be expected in mid-February.
European Commission seeks feedback on the measures Apple should take to ensure interoperability under DMA
European Commission has sent preliminary findings to Apple in the context of the two specification proceedings it started on 19 September 2024. These findings indicate the proposed measures for Apple to ensure interoperability of connected devices with iPhones and to make interoperability by third parties more predictable and transparent, as required by the Digital Markets Act (DMA). The preliminary findings in the first specification proceedings outline the proposed measures the Commission considers Apple should implement to effectively comply with its interoperability obligations in relation to several iOS connectivity features, predominantly used for and by connected devices. These can be notifications, automatic Wi-Fi connection, AirPlay, AirDrop, or automatic Bluetooth audio switching. The preliminary findings in the second specification proceedings outline the proposed measures that the Commission considers Apple should implement in relation to the request-based process developers need to go through to obtain interoperability with a specific iOS or iPadOS feature. The Commission consulted on the measures relevant for connected devices seeking interoperability with iOS, as well as on Apple’s interoperability request process for third parties. Interested parties had until 9 January 2025 to submit their views on each of the two sets of measures. Under the DMA, Apple must provide developers and businesses with free and effective interoperability with hardware and software features controlled by its operating systems iOS and iPadOS, which are core platform services for which Apple was designated as gatekeeper.
EUIPO issues discussion paper on search results
The EUIPO has published a discussion paper which aims to contribute to a better understanding of the interplay between the search engine, the user, and the website owners in relation to the two distinct technical functioning of search engines – ‘organic’ and ‘paid for’ search results. The paper also identifies the challenges and resulting good practices to address the misuses of search engines through SEO and SEM techniques.
