NEWS & INSIGHTS

Up-to-date.

Implementation status of certain EU regulations

Technology 

01. New development regarding NIS 2 Directive implementation in various Kinstellar jurisdictions

The EU's NIS2 Directive is a cybersecurity act aimed at improving overall cybersecurity in the EU. Member States must implement it by 17 October 2024. Below we provide an update from Kinstellar’s TMT teams in various jurisdictions.

STATUS

◉ Bulgaria | ◉ Croatia | ◉ Czech Republic | ◉ Hungary | ◉ Romania | ◉ Slovakia

02.  New development regarding Regulation on a Single Market for Digital Services (Digital Services Act) implementation in various Kinstellar jurisdictions

The Digital Services Act (the DSA), outlined in Regulation (EU) 2022/2065, constitutes a legal framework within EU legislation aimed at contemporising the provisions of the Electronic Commerce Directive 2000. It specifically addresses issues pertaining to illegal content, transparent advertising, and disinformation within the digital realm. Below is an update from Kinstellar’s TMT teams in various jurisdictions.

STATUS
◉ Bulgaria | ◉ Croatia | ◉ Czech Republic | ◉ Hungary | ◉ Romania | ◉ Slovakia

◉ implemented;
◉ specific version of the draft act is already in place, not approved by the legislative body yet;
◉ preliminary information - implementation in process / ongoing discussion; and
◉ no information - the implementation not in process / no discussion taking place

New significant market power operator in Bulgaria

On 30 July 2024, Bulgaria's Communications Regulation Commission (the CRC) designated Vivacom Bulgaria EAD as a significant market power operator in the wholesale market for passive infrastructure access essential for internet and television services. The CRC identified a lack of effective competition and imposed obligations on Vivacom, including transparency, non-discrimination, access, cost-oriented pricing, a reference offer for duct access, and a three-month advance notice for asset transfers to third parties.

Major changes to gambling regulations

Recent amendments to Bulgaria's gambling act introduce significant changes for gambling organisers, including bans on advertisements and new monitoring requirements for internet service providers to block access to unlicensed gambling websites. These changes have notably affected the advertising strategies of gambling operators and associated platforms. However, a recent decision by the regulator has reopened the possibility for these platforms to reconsider entering the Bulgarian market. Find out more here and here.

New law on cryptoassets 
A draft of the Bulgarian Cryptoassets Act was released for public consultation on 20 August 2024. This act aims to regulate the previously unregulated crypto sector by requiring licenses for crypto service providers. The Financial Supervision Commission and the Bulgarian National Bank will set capital requirements for market participants ranging from EUR 50,000 to EUR 350,000. While the regulation is expected to improve transparency and protect investors, it may also increase administrative burdens and costs for smaller companies. The consultation period expired on 20 September 2024. 

New labor law changes significantly impact the processing of employee data
In accordance with a new ordinance from 2024 on keeping records on employees, employers are obliged to maintain records of data on their employees.  If, for example, an employer decides for this purpose to collect and keep copies of employee's identity cards, such processing must have a legal basis in line with the General Data Protection Regulation.

Digital Economy Act to rapidly increase fines for unsolicited commercial communications
The Digital Economy Act prepares the Czech Republic for the adaptation of the European Digital Services Act (DSA) and the Data Governance Act (DGA). Without further justification or discussion, the draft proposes to increase the upper limit of the pecuniary administrative fine for unsolicited commercial communications from CZK 10 million up to CZK 20 million. E-commerce businesses in particular should take note and continue to monitor the legislative procedure. 

Proposed Amendment to the Czech Audiovision Act to impact video-on-demand providers and bring a new incentive scheme for the video game industry
The main changes are the extension of selective support to TV and VOD productions, a new incentive scheme for the video game industry, and improvements to the film incentive mechanism. Those considering how to finance a potential video game or film project in the Czech Republic should follow the development closely. The Amendment has recently passed its first reading in the Chamber of Deputies of the Czech parliament (the lower chamber) and is expected to be adopted by the end of 2024 and to take effect in January 2025.

Romania enacts law restricting ads for electronic cigarettes and heated tobacco products
Romania enacted Law 232/2024, amending Advertising Law 148/2000 and Audiovisual Law 504/2002, which adds to the existing prohibition on advertising tobacco products by including the following: electronic cigarettes (including vape cigarettes), products for smokeless inhalation of tobacco substitutes, electronic devices for heating tobacco and products for smokeless inhalation of tobacco substitutes, and pouches with nicotine for oral use. 

Romanian gambling regulator strengthens rules to prevent access to illegal gambling
In August, the Romanian National Office for Gambling (NOG) published a draft legislative initiative (so-called Draft Order), which establishes requirements that must be implemented by ancillary service providers in the gambling industry as part of an effort to keep unlicensed operators out of the industry.

Serbia and Balkans draw attention to data protection compliance

The Serbian and Western Balkans Data Protection Authorities have started to directly approach large technology companies regarding local compliance with personal data protection regulations. This step is part of ongoing efforts to ensure that companies operating in the region meet their obligations under local laws, including the requirement to appoint representatives and align their practices with national regulations.

Serbian Securities Commission approves Treasury Token offering

The Serbian Securities Commission has approved the publication of a white paper for the initial offering of 28,301 Treasury Tokens, issued by Treasury d.o.o. Belgrade, with a nominal value of EUR 106 in the RSD equivalent according to the middle exchange rate of the National Bank of Serbia on the day of token sale, in accordance with the Law on Digital Assets in Serbia.

The Council for Media Services is to be the coordinator of digital services

The Council for Media Services is to be the coordinating body for overseeing compliance with the obligations of providers of online intermediary services, including internet search engines. This is based on the draft amendment to the Media Services Act and transposition of the DSA and other relevant European Union (EU) regulations, which was approved by the Slovak government in May.

Auction of .sk domains

SK-NIC, a.s. is launching the release of 1-, 2- and 3-character .sk domains for registration from 1 October 2024. These are, e.g., domains such as 1.sk, ba.sk or hm.sk.

Key changes to Turkish Data Protection Law is in effect

Amendments to the Turkish Personal Data Protection Law, particularly regarding sensitive data and cross-border data flows, were introduced on 12 March and took effect on 1 June 2024. The new rules for cross-border transfers will be effective from 1 September 2024. These amendments aim to enhance alignment with the GDPR and provide greater flexibility. Find out more here. 

Crypto Law

The Crypto Law No. 7518, amending the Capital Markets Law, was published in the Official Gazette on 2 July 2024 and took effect immediately. This law establishes a comprehensive regulatory framework for crypto asset service providers in Turkey, formalising the legal structure for the crypto sector. Find out more here. 

EU roaming services under “Roaming Like at Home” model available for Ukrainians

The recently adopted law aims to fulfil Ukraine's European integration requirements in electronic communications. It establishes Ukraine's participation in the shared Ukraine-EU roaming zone, enabling Ukrainians to access roaming services in EU countries without extra charges under the "Roaming Like at Home" (RLAH) framework. This law will take effect on a date to be determined by the EU-Ukraine Association Committee's decision.

Ukrainian authorities actively working on AI recommendations

In June 2024, the Ministry of Digital Transformation of Ukraine presented the White Paper on Regulation of Artificial Intelligence in Ukraine, which provides insights into how AI will be regulated in Ukraine in the future. In recent months, the Ministry of Digital Transformation has also issued official recommendations on the use of AI in media, advertising and marketing communications.

New amendments to the legal framework governing IP rights to be effective

Beginning in mid-December 2024, trademark owners in Uzbekistan will be able to claim compensation from infringers ranging from USD 600 to USD 30,000, irrespective of actual damages incurred. Currently, the maximum compensation is set at USD 900 for a single violation and USD 1,500 for repeated offenses. The new compensation structure will consider the nature of the infringement, the infringer's level of fault, and common business practices. These amendments reflect Uzbekistan's ongoing efforts to bolster the legal protection of intellectual property rights.