The continuing rise of Consumer Litigation in the EU - Trend 3: The Impact of Increased Digital Regulation
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Co-managing partner of our offices in the Netherlands and co-head of Bird & Bird's International Dispute Resolution practice group. I am a specialist in managing complex disputes in our sectors of focus, including all claims and insurance matters.
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In the third part of our mini-series looking at the continuing rise of Consumer Litigation in the EU we consider the impact of increased digital regulation and how it is adding to the rise of Consumer Litigation in the EU.
The Digital Decade
In the face of emerging digital development, the EU has decided to place itself as a frontrunner in the governance and regulation of digital technologies. In fact, the European Commission has publicized its determination “to make this Europe’s Digital Decade”. In accordance with this sentiment, EU legislators have either enacted or are proposing several new laws, which in addition to their impact on EU businesses and consumers will also have extra-territorial effect outside of the EU as well. In addition to regulating the digital space which we now all occupy, these new laws will also provide consumers with the right to litigate to hold these businesses accountable for any breaches so it is important for businesses to understand what their obligations will be and ensure they are compliant.
What are the new digital EU regulations?
| Status of the legislative process | Expected or determined entry into force | Implementation by Member States | |
| Artificial Intelligence Act | The European Parliament passed its version of the Act on 14 June 2023. This version was considered during the final trilogue which took place from 6 December to 8 December 2023. The Act is now going through lawyer linguistic cleaning. A ‘clean’ text is likely to be available just ahead of the European Parliament’s plenary vote to endorse the final AI Act, which is currently scheduled for the 10-11 April session. | Not yet known but possibly by the end of the second quarter of 2024 but not earlier than May 2024. | The majority of the Act will apply in Member States two years following the Act’s entry into force, meanwhile specific provisions will have different timelines. Prohibited systems will apply 6 months after the entry into force, requirements for General Purpose AI will apply after one year, and some high-risk system requirements will apply after 3 years. |
| Digital Services Act | N/A as the DSA is in force. | The Act entered into force on 16 November 2022. | The Act will be directly applicable in Member States from 17 February 2024. |
| Digital Markets Act | N/A as the DMA is in force. | The Act entered into force on 1 November 2022. | The rules under the Act have applied since 2 May 2023. Obligations for designated gatekeepers will apply as of March 2024. For more information see below. |
| Omnibus Directive | N/A as the Directive is in force. | The Directive entered into force on 7 January 2022. | Several Member States failed to meet the transposition deadline and were sent a letter of formal notice. Most States have implemented the Directive, with the exception of Slovakia and Austria which are still in the process of doing so. |
Artificial Intelligence Act - The
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