Digital Law Alert - April 2022

This month we bring you another selection of top digital law news stories from across the UK and EU.

• CISGIL v IBM: The UK Court of Appeal decision
• UK Financial Conduct Authority publishes new strategy
• Draft EU Digital Services Act negotiations result in agreement
• EU Data Governance Act adopted by European Parliament
• Bank of England proposals regarding FMI outsourcing and third party risk management
• Joint report by European Patent Office and European Investment Bank on 4IR innovation
• New UK public procurement regulations supporting international trade
• Proposed EU Regulation on a pilot regime for market infrastructures based on DLT
• UK agrees MoU with India regarding ICT cooperation

CISGIL v IBM: The UK Court of Appeal decision

The UK High Court’s ruling in CISGIL v IBM has been overturned by the Court of Appeal. The judgment of Soteria Insurance Limited (formerly CIS General Insurance Limited) v IBM United Kingdom Limited [2022] EWCA Civ 440 was handed down on 4 April 2022, in which it was declared in an about turn from the High Court’s ruling that wasted expenditure was recoverable by CISGIL. Read more from DLA Piper’s Tech and Sourcing team here.

UK Financial Conduct Authority publishes new strategy

As recently reported by our team, the UK’s Financial Conduct Authority/FCA has recently published its three year strategy for 2022-2025, seeking to improve outcomes for consumers and in markets throughout the UK. In its new strategy the FCA for the first time sets out the outcomes that the FCA expects from businesses across all markets. The strategy focuses on three key themes, each of which is supported by commitments showing how the FCA will help create the conditions necessary for the UK financial services sector to deliver the expected outcomes.

Draft EU Digital Services Act negotiations result in agreement

Recent negotiations between EU legislators have resulted in agreement regarding the draft EU Digital Services Act, which will introduce provisions focused on the liability of online intermediaries and creating due diligence obligations in respect of certain types of providers of online intermediary services when it comes into effect.  We provide more insight into the Digital Services Act here.

EU Data Governance Act adopted by European Parliament

By way of a progress update regarding the EU Data Governance Act, on 6 April 2022 the European Parliament adopted the proposal for the Act that is aimed at supporting increased data sharing in the EU and providing businesses with greater access to data that they can then use in the creation of new products and services. For those established businesses and start ups looking to access significant amounts of data to develop products and services relying on AI, the introduction of the Act could come as a welcome bonus.

Bank of England proposals regarding FMI outsourcing and third party risk management

On 14 April 2022 the Bank of England published its proposals in relation to outsourcing and third party risk management in Financial Market Infrastructures. The proposals focus on the BoE’s expectations and requirements in relation to risk and its support of greater resilience and adoption of cloud and complement the BoE’s Supervisory Statements on operational resilience. The proposals were published in the form of Consultations Papers that the BoE invites comments on (to be received by 14 July 2022).

Joint report by European Patent Office and European Investment Bank on 4IR innovation

A joint report published on 28 April 2022 by the EPO and the EIB compares activity in deep tech innovation in smart connected technologies in the  EU and US and concludes that Europe is lagging behind the US. Barriers to European innovation identified include ease of access to finance and specialist talent. The study identifies several key recommendations, such as the need for European businesses to be provided with greater early stage support in the form of targeted grants and early deployment policies.

New UK public procurement regulations supporting international trade

UK Parliament is considering the draft Public Procurement (International Trade Agreements) (Amendment) Regulations 2022 laid before it this month, which seek to implement the EEA EFTA Agreement between the UK, Norway, Iceland and Liechtenstein. The Regulations will replace a suite of existing secondary legislation and introduce a key provision focused on requiring tenderers that make low priced tenders to provide more clarity regarding their price calculations.

Proposed EU Regulation on a pilot regime for market infrastructures based on DLT

A proposal regarding a pilot regime for market infrastructures based on distributed ledger technology/DLT introduced in September 2020 has now been adopted by the Council of the EU. When it becomes effective the Regulation will create a three year innovation test bed for the development of DLT to facilitate the trading and settlement of listed financial instruments.

UK agrees MoU with India regarding ICT cooperation

The UK and India have agreed a Memorandum of Understanding/MoU that has the aim of developing mutually beneficial cooperation in telecommunications and information communication technology, according to a statement released by the UK’s Department for Digital, Culture, Media & Sport. The MoU is intended to pave the way towards further collaboration on telecoms and ICT development and the modernisation and expansion of networks and services.