Companies regularly store information about their customers, clients, employees, investors, partners and vendors. Privacy and data security are therefore important aspects of most M&A transactions. Although the risk of non-compliance with privacy laws may result in severe negative consequences, many M&A agreements still lack adequate privacy-related representations and warranties.
Members of Parliament recently filed an application to amend the Data Protection Act 2018 in order to clarify certain aspects which have led to confusion over the past couple of months. In addition to several provisions relating to competence, the proposed act, among other things, contains a rephrased version of the fundamental right to data protection, introduces the mandatory appointment of data protection officers and suggests enabling the matching of images with explicit consent.
Approximately one year before the General Data Protection Regulation will come fully into force, the Austrian legislature has officially started a six-week consultation process for the national Data Protection Amendment Act 2018. If and to what extent the legislature will make use of the competencies provided for by the 'opening clauses' in the General Data Protection Regulation is highly relevant to companies, and the amendment act has answered this question.
A draft law amending the Federal Act against Unfair Competition 1984 and the Price Labelling Act was recently published for public consultation. The draft law intends to introduce a ban on most-favoured nation clauses in contracts between online travel agencies and hotel operators. Commercially, the draft law puts online travel agencies' business model at risk and may even deter innovation and investments beyond this niche industry.
The Austrian registry operator recently initiated the launch process for approximately 5,000 one and two-character domain names under the top-level domain (TLD) '.at'. Owners of trademarks consisting of one or two characters should consider requesting delegation of their short trademarks as domains under the '.at' TLD in order to use them or at least prevent unauthorised third parties from taking advantage of their marks.
The European Union's legal framework for e-signatures recently came into effect via the eIDAS Regulation. The British Virgin Islands was one of the first jurisdictions to recognise the validity of e-signatures and electronic records. Along with other BVI statutory developments, the BVI Electronic Transactions Act 2001 provides flexibility in cross-border transactions involving BVI companies.
NIC Chile, which administers the '.cl' domain name, recently announced that as of May 30 2016, 508,893 '.cl' domain names had been registered. According to NIC Chile's director, one of the domain name's strengths has been its acceptance at a local level following the decision of several national and international companies and services to develop their internet profile through '.cl' domains.
The General Office of the State Council recently issued the Measures for the Management of Scientific Data, which aim to improve and standardise the management of scientific data, safeguard scientific data security and encourage transparency and the sharing of scientific data. This is the first time that China has released measures which regulate scientific data at the national level. However, compared with some European countries and the United States, China still has far to go in this regard.
Following a media report that certain mobile phone application software was infringing user privacy, the Ministry of Industry and Information Technology organised talks with three internet companies. The ministry pointed out that the companies had collected and used users' personal information without fully disclosing the purpose of its use. The companies must now conduct rectifications to fully protect users' rights to be informed.
The European Commission's recent communication shows that only two member states have adopted the national legislation required to implement the EU General Data Protection Regulation. Others, Croatia included, are at different stages of the process. To meet the May 25 2018 deadline, Croatia should promptly address its national approach to open issues – in particular, its policies surrounding administrative fines.