European Union

The European Commission first published a proposal for an AI Liability Directive (“AILD”) in September 2022 as part of a broader set of initiatives, including proposals for a new Product Liability Directive (“new PLD”) and the EU AI Act (see our blog posts here, here and here).

The AILD was intended to introduce uniform rules for certain aspects of non-contractual civil claims relating to AI, by introducing disclosure requirements and rebuttable presumptions.

However, unlike the new PLD and EU AI Act, which have both been adopted and have entered into force, the AILD has encountered stagnation and resistance during the legislative process.Continue Reading The Future of the AI Liability Directive

On January 29 – 31, 2025, Covington convened authorities from across our practice groups for the Sixth Annual Technology Forum, which explored recent global developments affecting businesses that develop, deploy, and use cutting-edge technologies. Seventeen Covington attorneys discussed global regulatory trends and forecasts relevant to these industries, highlights of which are captured below.  Please click here to access any of the segments from the 2025 Tech Forum.

Day 1: What’s Happening Now in the U.S. & Europe

Early Days of the New U.S. Administration

Covington attorney Holly Fechner and Covington public policy authority Bill Wichterman addressed how the incoming administration has signaled a shift in technology policy, with heightened scrutiny on Big Tech, AI, cryptocurrency, and privacy regulations. A new Executive Order on AI aims to remove barriers to American leadership in AI, while trade controls and outbound investment restrictions seek to strengthen national security in technology-related transactions. Meanwhile, the administration’s approach to decoupling from China is evolving, with stricter protectionist measures replacing prior subsidy-based initiatives.Continue Reading Covington Technology Forum Spotlight – The Great Race: Keeping Up as Technology and Regulation Rapidly Evolve

The Commission and the European Board for Digital Services have announced the integration of the revised voluntary Code of conduct on countering illegal hate speech online + (“Code of Conduct+”) into the framework of the Digital Services Act (“DSA”). Article 45 of the DSA states that, where significant systemic risks emerge under Article 34(1) (concerning the obligation on very large online platforms (“VLOPs”) and very large online search engines (“VLOSEs”) to identify, analyse, and assess systemic risks), and concern several VLOPs or VLOSEs, the Commission may invite VLOPs and VLOSEs to participate in the drawing up of codes of conduct, including commitments to take risk mitigation measures and to report on those measures and their outcomes. The Code of Conduct+ was adopted in this context. VLOPs and VLOSEs’ adherence to the Code of Conduct+ may be considered as a risk mitigation measure under Article 35 DSA, but participation in and implementation of the Code of Conduct+ “should not in itself presume compliance with [the DSA]” (Recital 104).

The Code of Conduct+—which builds on the Commission’s original Code of Conduct on countering illegal hate speech online, published in 2016—seeks to strengthen how Signatories address content defined by EU and national laws as illegal hate speech. Adhering to the Code of Conduct+’s commitments will be part of the annual independent audit of VLOPs and VLOSEs required by the DSA (Art. 37(1)(b)), but smaller companies are free to sign up to the Code as well.Continue Reading Introduction of the Revised Code of Conduct+ and the Digital Services Act

On 16 January 2025, the European Data Protection Board (“EDPB”) published a position paper, as it had announced last year, on the “interplay between data protection and competition law” (“Position Paper”).

In this blogpost, we outline the EDPB’s position on cooperation between EU data protection authorities (“DPAs”) and competition authorities (“CAs”) in the context of certain key issues at the intersection of data protection and competition law.

Key takeaways

  1. In the interest of coherent regulatory outcomes, the EDPB advocates for increased cooperation between DPAs and CAs.
  2. The Position Paper offers practical suggestions to that end, such as fostering closer personal relationships, mutual understanding, and a shared sense of purpose, as well as more structured mechanisms for regulatory cooperation.
  3. The EDPB is mindful of the Digital Markets Act’s (“DMA”) significance in addressing data protection and competition law risks.

Continue Reading EDPB highlights the importance of cooperation between data protection and competition authorities

In a new post on the Inside Privacy blog, our colleagues discuss the European Commission’s recent announcement of new standard contractual clauses for transfers of personal data to non-EU controllers and processors subject to the EU GDPR.

Continue Reading EU Commission Announces New SCCs for International Transfers to Non-EU Controllers and Processors Subject to the GDPR

On July 18, 2024, the President of the European Commission, Ursula von der Leyen, was reconfirmed by the European Parliament for a second five-year term. As part of the process, she delivered a speech before the Parliament, complemented by a 30-page program, which outlines the Commission’s political guidelines and priorities for the next five years. The guidelines introduce a series of forthcoming legislative proposals across many policy areas, including on defence and technology security.Continue Reading The Future of EU Defence Policy and a Renewed Focus on Technology Security

On July 30, 2024, the European Commission announced the launch of a consultation on trustworthy general-purpose artificial intelligence (“GPAI”) models and an invitation to stakeholders to express their interest in participating in the drawing up of the first GPAI Code of Practice (the “Code”) under the newly passed EU AI Act (see our previous blog here). Once finalized, GPAI model providers will be able to voluntarily rely on the Code to demonstrate their compliance with certain obligations in the AI Act.Continue Reading European Commission Launches Consultation and Call for Expression of Interest on GPAI Code of Practice

On 12 July 2024, EU lawmakers published the EU Artificial Intelligence Act (“AI Act”), a first-of-its-kind regulation aiming to harmonise rules on AI models and systems across the EU. The AI Act prohibits certain AI practices, and sets out regulations on “high-risk” AI systems, certain AI systems that pose transparency risks, and general-purpose AI (“GPAI”) models.

The AI Act’s regulations will take effect in different stages.  Rules regarding prohibited practices will apply as of 2 February 2025; obligations on GPAI models will apply as of 2 August 2025; and both transparency obligations and obligations on high-risk AI systems will apply as of 2 August 2026.  That said, there are exceptions for high-risk AI systems and GPAI models already placed on the market:  Continue Reading EU Artificial Intelligence Act Published

On May 30, 2024, the Court of Justice of the EU (“CJEU”) handed down its rulings in several cases (C-665/22, Joined Cases C‑664/22 and C‑666/22, C‑663/22, and Joined Cases C‑662/22 and C‑667/22) concerning the compatibility with EU law of certain Italian measures imposing obligations on providers of online platforms and search engines.  In doing so, the CJEU upheld the so-called “country-of-origin” principle, established in the EU’s e-Commerce Directive and based on the EU Treaties principle of free movement of services.  The country-of-origin principle gives the Member State where an online service provider is established exclusive authority (“competence”) to regulate access to, and exercise of, the provider’s services and prevents other Member States from imposing additional requirements.

We provide below an overview of Court’s key findings.Continue Reading CJEU Upholds Country-of-Origin Principle for Online Service Providers in the EU

On May 17, 2024, the Council of Europe adopted the Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law (the “Convention”).  The Convention represents the first international treaty on AI that will be legally binding on the signatories.  The Convention will be open for signature on September 5, 2024. 

The Convention was drafted by representatives from the 46 Council of Europe member states, the European Union and 11 non-member states (Argentina, Australia, Canada, Costa Rica, the Holy See, Israel, Japan, Mexico, Peru, the United States of America, and Uruguay).  The Convention is not directly applicable to businesses – it requires the signatories (the “CoE signatories”) to implement laws or other legal measures to give it effect.  The Convention represents an international consensus on the key aspects of AI legislation that are likely to emerge among the CoE signatories.Continue Reading Council of Europe Adopts International Treaty on Artificial Intelligence