European Union (EU)

In April 2021, the European Commission released its proposed Regulation Laying Down Harmonized Rules on Artificial Intelligence (the “Regulation”), which would establish rules on the development, placing on the market, and use of artificial intelligence systems (“AI systems”) across the EU. The proposal, comprising 85 articles and nine annexes, is part of a wider package of Commission initiatives aimed at positioning the EU as a world leader in trustworthy and ethical AI and technological innovation.

The Commission’s objectives with the Regulation are twofold: to promote the development of AI technologies and harness their potential benefits, while also protecting individuals against potential threats to their health, safety, and fundamental rights posed by AI systems. To that end, the Commission proposal focuses primarily on AI systems identified as “high-risk,” but also prohibits three AI practices and imposes transparency obligations on providers of certain non-high-risk AI systems as well. Notably, it would impose significant administrative costs on high-risk AI systems of around 10 percent of the underlying value, based on compliance, oversight, and verification costs. This blog highlights several key aspects of the proposal.Continue Reading European Commission Proposes New Artificial Intelligence Regulation

On 10 September 2020, the UK Information Commissioner’s Office (“ICO”) published its beta-phase “Accountability Framework” (“Framework”).  The Framework is designed to assist organisations, of any size and across all sectors, in complying with the accountability principle under the GDPR and in meeting the expectations of the ICO.

The Framework will help those within organisations who are responsible for implementing data protection compliance strategies.  The ICO envisages that organisations will use the Framework in conjunction with other relevant guidance and materials available from the ICO.  The ICO emphasises that each organisation must be mindful of its own circumstances when managing data protection risks, and that a “one size fits all” approach should not be adopted.
Continue Reading UK Information Commissioner’s Office Publishes Draft Accountability Framework Tool

The Court of Justice of the European Union’s recent decision in the “Schrems II’ case was one of the most highly anticipated decisions in the world of data privacy, striking down the EU-U.S. Privacy Shield, but upholding the validity of standard contractual clauses.

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Today, the Court of Justice of the European Union issued a landmark decision striking down the EU-U.S. Privacy Shield—an agreement between EU and U.S. authorities authorizing transfers of EU personal data to the United States—but upholding the validity of standard contractual clauses (“SCCs”), another mechanism that EU-based organizations use to transfer data internationally. Covington represents BSA | The Software Alliance (“BSA”) in the case, and key aspects of BSA’s arguments on the validity of SCCs were reflected in the Court’s decision.
Continue Reading EU’s Highest Court Strikes Down Privacy Shield But Upholds Other Key International Data Transfer Mechanism

On May 4, 2020, the European Data Protection Board (“EDPB”) updated its guidelines on consent under the GDPR.  An initial version of these guidelines was adopted by the Article 29 Working Party prior to the GDPR coming into effect, and was endorsed by the EDPB on May 25, 2018.
Continue Reading Updated EDPB Guidelines on Consent and Implications for Cookies

On 19 February 2020, the new European Commission published two Communications relating to its five-year digital strategy: one on shaping Europe’s digital future, and one on its European strategy for data (the Commission also published a white paper proposing its strategy on AI; see our previous blogs here and here).  In both Communications, the Commission sets out a vision of the EU powered by digital solutions that are strongly rooted in European values and EU fundamental rights.  Both Communications also emphasize the intent to strengthen “European technological sovereignty”, which in the Commission’s view will enable the EU to define its own rules and values in the digital age.  The Communications set out the Commission’s plans to achieve this vision.
Continue Reading European Commission’s plans on data and Europe’s digital future (Part 3 of 4)

The European Commission, as part of the launch of its digital strategy for the next five years, published on 19 February 2020 a White Paper On Artificial Intelligence – A European approach to excellence and trust (the “White Paper”).  (See our previous blog here for a summary of all four of the main papers published by the Commission.)  The White Paper recognizes the opportunities AI presents to Europe’s digital economy, and presents the Commission’s vision for a coordinated approach to promoting the uptake of AI in the EU and addressing the risks associated with certain uses of AI.  The White Paper is open for public consultation until 19 May 2020.
Continue Reading European Commission’s White Paper on Artificial Intelligence (Part 2 of 4)

On January 23, 2020, the European Parliament’s Internal Market and Consumer Protection Committee approved a resolution on artificial intelligence (“AI”) and automated decision-making (“ADM”). The resolution references several major pieces of work carried out by the European Commission on AI and provides a list of existing EU instruments that are relevant to AI and ADM — which together present a potential roadmap of areas of reform.

The resolution was approved in committee by 39 votes in favor, none against and four abstentions. It will next be voted on by the full Parliament in an upcoming plenary session. If adopted, it will be transmitted to the EU Council and the Commission for consideration. The Commission’s Executive Vice-President Margrethe Vestager is expected to present plans for a European approach to AI in a Commission meeting on February 19, 2020.Continue Reading European Parliament Committee Approves Resolution on AI for Consumers

On December 12, 2019, the European Parliament endorsed a non-binding resolution on enabling the digital transformation of health and care. The resolution calls on the European Commission to take a number of actions to foster the development of digital health systems in Europe to improve patient care and support research efforts — particularly those using innovative technologies such as AI.
Continue Reading European Parliament Endorses Digital Health Resolution

On December 19, 2019, Advocate General (“AG”) Henrik Saugmandsgaard Øe handed down his Opinion in Case C-311/18, Data Protection Commissioner v Facebook Ireland and Maximillian Schrems (“Schrems II”). The AG’s Opinion provides non-binding guidance to the Court of Justice of the EU (“CJEU”) on how to decide the case.

In brief, the AG recommended that the CJEU find that Decision 2010/87 (setting out standard contractual clauses for controller to processor transfers) should not be invalidated. The Opinion also concluded that the Court did not need to rule on the validity of the EU-U.S. Privacy Shield to decide Schrems II.Continue Reading AG Publishes Opinion on the Validity of the EU Standard Contractual Clauses