Recent legislative and legal developments in the global digital world.
Wednesday, 4 September, 2019
The entry into force of the SCA, expected for mid September, has been delayed
This is the strong customer authentication system (SCA) envisaged in the Payment Services Directive (PSD2) to help combat fraud in e-commerce. Despite its entry into force being scheduled for September 14, 2019, the authorities of companies such as the United Kingdom, Germany, France or Italy have stated that they intend to delay it for a limited period, which could be around 18 months.
Monday, 26 August, 2019
Provisional agreement between France and the United States regarding the new French digital tax
France and the United States have reached a provisional agreement regarding the new French digital tax which was approved in July and is applicable retroactively. Under the terms of this agreement, US companies will pay this tax until the OECD has adopted an international treaty (which is expected to be in the first half of 2020). When this happens, France will pay companies the difference between the French tax and that agreed upon by the OECD.
The P2B Regulation, which will apply to all Member States as from July 12, 2020, was published in the Official Journal of the European Union. The European Commission must evaluate the Regulation by January 13, 2022.
This past week, the French Senate approved a digital tax of 3% on sales of companies that generate worldwide revenue of at least €750 million per year, with €25 million coming from within France. The US government is conducting an inquiry into the move, which it believes could unfairly target certain companies, and may take measures in response.
The EU Regulation on the free flow of non-personal data enters into force
This Regulation provides for: (i) the free flow of non-personal data across Member State borders, (ii) data availability for regulatory control purposes by competent authorities, (iii) facilitating the switching of cloud service providers for professional users, and (iv) cross-border collaboration in cybersecurity matters in the EU.
The Council of the European Union has established a framework to enable the European Union to impose restrictive measures to deter or counteract cyber-attacks affecting the EU or any of its Member States. Sanctions can be imposed on persons or entities that are responsible or provide support for such attacks.
The European Parliament approves the Regulation on platform-to-business trading practices
The European Parliament has approved the new Regulation on platform-to-business trading practices, with the aim of creating a fair, trusted and innovation-driven environment for businesses when using online platforms. The text has still has to be officially approved by the Council of the European Union. Once approved, the Regulation will enter into force twelve months after its publication in the Official Journal of the European Union.
The EC reforms copyright legislation to make it fit for the digital era
The new Copyright Directive will bring tangible benefits to citizens, creative sectors, the press, researchers, educators and cultural heritage institutions. The reform will bring copyright rules into line with today’s world, where music streaming services, video-on-demand platforms, news aggregators and user-uploaded-content platforms have become the main means of accessing creative works and press articles. The Directive was proposed by the European Commission in September 2016 and voted on by the European Parliament in March 2019.