This Week’s Techlaw News Round-up

July 5, 2024

UK law

CMA publishes progress update on the mobile browsers and cloud gaming market Investigation

The Competition and Markets Authority has published an update about its market investigation into the supply of mobile browsers and browser engines, and the distribution of cloud gaming services through app stores on mobile devices in the United Kingdom. It has published its first set of working papers, as well as commissioning two primary research projects on smartphone users and web developers. In addition, it published the key findings from the qualitative research with smartphone users; and the full report from qualitative research with web developers. The CMA also plans to hold hearings with Google and Apple this month, and to publish its provisional decision report in October 2024. The statutory deadline for its final decision is 16 March 2025.

EU law

European Commission requests information from Temu and Shein on compliance with the Digital Services Act

The Commission has sent the online marketplaces Temu and Shein formal requests for information (RFIs) under the Digital Services Act (DSA). The Commission is requesting Temu and Shein to provide more information on the measures they have taken to comply with the DSA obligations related to the so-called “Notice and Action mechanism” (which allow users to notify illegal products), the online interfaces (which should be designed in a way that does not deceive or manipulate users via so called “dark patterns”), the protection of minors, the transparency of recommender systems, the traceability of traders and compliance by design. The action follows complaints by consumer organisations. The deadline is 12 July 2024. Next steps could involve the formal opening of proceedings under Article 66 of the DSA. Under Article 74(2) of the DSA, the Commission can impose fines for incorrect, incomplete, or misleading information in response to a request for information. Following their designation as Very Large Online Platforms, Temu and Shein are subject to the supervision of the Commission, including for the general obligations of the DSA, which entered into force on 17 February 2024. Temu and Shein also continue to be supervised in respect of their general obligations under the DSA by the Coimsiún na Meán and the Competition and Consumer Protection Commission as the competent authorities of in Ireland. Temu and Shein have four months from the designation to comply with the more stringent rules under the DSA, notably the obligation to duly assess and mitigate any systemic risks stemming from their services, such as the dissemination of unsafe and counterfeited products.

European Commission consults on draft Regulation on cybersecurity risk management under NIS2 Directive.

The European Commission is consulting on draft implementing Regulation on cybersecurity risk management & reporting obligations for digital infrastructure, providers and ICT service managers. The draft implementing regulation deals with the technical and methodological requirements of the risk management measures referred to in Article 23(3) of the NIS2 Directive; and the criteria for when an incident shall be considered significant under Article 23(3) of the NIS2 Directive. The consultation ends on 25 July 2024. The Commission plans to adopt the Implementing Regulation later in the year.

Irish government consults on implementation of AI Act

The Irish Department of Enterprise, Trade and Employment is consulting on the implementation of the EU’s AI Act. The consultation is intended to inform Ireland’s approach to implementing the Act and, specifically in relation to the configuration of national competent authorities required for implementation. The AI Act will apply on a phased basis over a 36-month period after it comes into effect. The consultation ends on 16 July 2024.