Newsletter December 2018

EU agrees new rules on business insolvency

The EU is giving reputable bankrupt entrepreneurs a second chance, and making it easier for viable enterprises in financial difficulties to access preventive restructuring frameworks at an early stage to prevent insolvency.

Once adopted, the new rules will complement the 2015 Insolvency Regulation which focuses on resolving the conflicts of jurisdiction and laws in cross-border insolvency proceedings, and ensures the recognition of insolvency-related judgments across the EU

Cross-border payments in euro cheaper across the entire EU

The European Parliament and the Council reached a political agreement on a Commission proposal that will make cross-border payments in euro cheaper across the entire EU. The agreed rules will also bring full transparency in currency conversion when consumers are paying by card.

The political agreement will allow consumers and businesses in euro and non-euro countries alike to benefit from low-cost euro transactions across borders. The new regulation will also ensure that currency conversion charges are fully transparent and comparable allowing consumers to save money on currency conversion costs when they travel or shop abroad. Provisionally agreed by the European Parliament and Council last week, the new rules were given a green light by EU Permanent Representatives at their meeting in Brussels of 19th of December 2018.

Draft Law on Business Incubators and Accelerators in Public Debate

The draft law takes into account a number of amendments, such as: simplifying the procedure for granting the title of business incubator by removing the feasibility study, as well as other regulations that hinder the procedure; changing the period of validity of the business incubator title – from 10 years to an undetermined period; reducing the number of types of business incubators; creating a legislative framework for business accelerators; clarifying some methodological aspects and interaction with the central public administration authority with attributions in the field of small and medium enterprises and the business environment.

The project is in public debate until 18.01.2019.

Doing business through online platforms

The EU is introducing new rules which will offer business users in the EU a more transparent, fair and predictable online platform environment, together with an effective system for seeking redress. The proposed regulation is the first EU legislative act that addresses relations between online platforms and the businesses using them.

The main goal of the regulation is to establish a legal framework that guarantees, in the first instance, transparent terms and conditions for business users of online intermediation services. Business users are then also guaranteed, within this framework, effective possibilities for redress when these terms and conditions are not respected.

The online platforms to be covered by the regulation include online market places, online software application stores and/or online social media, as well as online search engines, irrespective of their place of establishment, provided they serve business users that are established within the EU and that they offer goods or services to consumers who are also located within the EU.

New rules allow Europeans to shop online without borders

The Regulation (EU) 2018/302 („Geo-blocking Regulation”) which entered into force on 3 December aims to provide consumers and businesses within the EU’s internal market with more opportunities. In particular, it addresses the problem of some customers not being able to buy goods and services from traders located in a different Member State, even at the same conditions as locals, only because of their nationality, place of residence or place of establishment. In 2015, a Commission survey found that only 37% of websites actually allowed cross-border customers to reach the final step before completing the purchase by entering payment details.

Member States are in charge of the enforcement of the Regulation and need to put in place the necessary structures to ensure a smooth start to its application. In particular, Member States must designate bodies entrusted with its enforcement and bodies which will provide practical assistance to consumers.

Use of Artificial Intelligence in Europe

Delivering on its strategy on artificial intelligence (AI) adopted in April 2018, the Commission presented in December a coordinated plan prepared with Member States to foster the development and use of AI in Europe.

This plan proposes joint actions for closer and more efficient cooperation between Member States, Norway, Switzerland and the Commission in four key areas: increasing investment, making more data available, fostering talent and ensuring trust. Stronger coordination is essential for Europe to become the world-leading region for developing and deploying cutting-edge, ethical and secure AI.

The coordinated plan for “AI made in Europe” details actions to start in 2019 or 2020 and prepares the ground for activities in the following years. Coordination with Member States will continue and the plan will be reviewed and updated annually.