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New pressure, new delays: the EU’s double move on AI
Europe has just introduced two significant developments that will directly affect how companies build, deploy, and oversee AI in 2026. One strengthens reporting. The other reshapes key compliance deadlines. 1. The AI act whistleblower tool is live—and it changes the game The EU’s new AI Act Whistleblower Tool is officially online, allowing any individual professionally connected to an AI model provider to flag risky or unlawful practices linked to general-purpose AI models and certain regulated AI systems. Reports can be submitted anonymously, in any EU language together with supporting documents via a secure inbox that also supports follow-up questions. While the AI Office will maintain strict
Alternative distribution models in the automotive sector: Consumer protections and liabilities
Alternative distribution models based on direct sales to consumers can be carried out with the varied involvement of traditional dealers. This means, among other things, producers taking on a significant number of consumer law obligations previously borne by dealers. In any event, the actual liability of producers in relation to direct sales depends on the respective contractual terms between manufacturers and agents. For example, in Austria, the differing contractual terms between a producer and agent, and an agent and customer, can lead to the following scenarios: a) a commercial agent selling vehicles in the name of the manufacturer while the manufacturer as the seller remains fully liable in terms of contractual
Regional Competition Law Update – Q3 2025
Kinstellar’s Competition & FDI team is pleased to present the Q3 2025 update to our Regional Competition Review. This latest edition provides a snapshot of recent enforcement activity, legislative changes, and emerging trends across Austria, Bulgaria, Croatia, Czech Republic, Romania, Turkey and Ukraine. Key highlights include the introduction of new “call-in” powers in Bulgaria, as well as proposed and newly implemented FDI regimes in Croatia and Ukraine, alongside a range of developments that are reshaping competition and FDI control across the region, such as: Austria – Enforcement and energy market focus Czech Republic – Merger remedies, sector inquiries, and cartel fines Romania
GDPR x AI: When privacy meets machine intelligence
As Europe moves ahead with the AI Act, the European Commission has made clear that there will be “no stop the clock, no grace period, and no pause”, despite calls from major tech players such as Google, Meta, Mistral, and ASML to delay implementation. The timeline remains firm: core provisions apply from February 2025, general-purpose model rules from August 2025, and high-risk AI obligations from August 2026. The message is clear: the Commission intends to keep its ambitious AI timeline on track, while it looks to streamline other digital obligations for companies. Against this backdrop, the GDPR may also be entering a new chapter. Nearly seven years after its adoption, a leaked draft of the Digital Omnibus package
Stop-the-Clock directive: transposition progress in Central and Eastern Europe
The Stop-the-Clock Directive (Directive (EU) 2025/794), which postpones the application of certain provisions of the EU's Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), giving companies breathing room and time to prepare for new sustainability reporting and due diligence requirements, is to be transposed by 31 December 2025. It has been gradually transposed across Central and Eastern Europe. Here’s a short overview of its transposition status: Country Status Austria Not yet transposed
EBA consults new SREP Guidelines: Revisions reflect regulatory developments, including DORA and ESG, as well as lessons learned
On 24 October 2025, the European Banking Authority (“EBA”) published a consultation paper on revised guidelines on common procedures and methodologies for the supervisory review and evaluation process (“SREP”) and supervisory stress testing (EBA/CP/2025/21). The consultation period will last three months, until 26 January 2026. The revised SREP Guidelines are expected to apply from 1 January 2027. New SREP Guidelines will integrate recent legislative changes and address lessons learned Since the issuance of the initial SREP Guidelines in 2014 and its subsequent revisions in 2017 and 2021, the European regulatory framework has significantly advanced. Mainly, the CRR III/CRD IV banking package, the Digital
EU adopts 19th sanctions package against Russia
On 23 October 2025, following a European Commission proposal issued on 19 September 2025 and extended negotiations among Member States, the Council of the EU adopted its 19th sanctions package against Russia in response to its ongoing aggression against Ukraine. The latest package reinforces existing restrictions targeting Russia’s military-industrial complex, energy sector and financial system, building on the measures introduced under the 18th package. It further strengthens the EU’s efforts to combat circumvention, including by designating additional entities and individuals located in third countries. In parallel, the EU has adopted additional sanctions against Belarus, including trade-related measures
AI awareness: Safeguarding your brand in an era of AI-generated content
The way we consume information is changing at an incredible pace, and we wanted to share a quick insight into a shift that may have real implications for your business. Recently, several clients have reached out to us with concerns about articles that are evidently AI-generated, potentially damaging their brand image and reputation. Unfortunately, this isn't an isolated issue, but it is part of a larger shift in the digital landscape. For the first time, more than half of all the visual and text-based content on the internet is now AI-generated. This means that the data your company relies on and the data it feeds into AI carries significant risks, demanding proactive strategies to remain compliant. What
Alternative distribution models in the automotive sector: Contractual law issues
The European automotive industry is in the midst of a profound transformation. Traditional dealership networks are being redefined, with manufacturers increasingly weighing direct-to-consumer, agency, or hybrid sales models. While such innovations can enhance brand control and customer engagement on the part of manufacturers, they also raise complex contractual law issues related to commercial and legal sustainability. At the centre of these challenges is the reality that altering hitherto existing distribution models requires substantial changes to existing contractual relationships. After all, most dealership agreements contain detailed provisions on exclusivity, termination rights, and non-compete obligations. Failure
EU FDI Screening: Insights from the Commission’s 5th Annual Report and what they mean for CEE
The European Commission published its fifth annual report on the screening of foreign direct investment (FDI) into the EU accompanied by a Staff Working Document. The report covers developments during 2024 and provides an overview of FDI screening across the EU, the evolution of national screening mechanisms, and emerging investment trends highlighting both the EU’s ongoing openness to foreign investors and its efforts to strengthen safeguards for security and public order. While the EU-27 continued to attract significant investment FDI inflows slowed in 2023 and 2024 due to a decline in greenfield investments, even as mergers and acquisitions began to recover unevenly across Member States and sectors. By the end of
Kinstellar Capital Markets series: Multiple voting rights – A chance for European capital markets?
Multiple voting rights have long been a topic of debate across Europe. The EU is now following the example of major global exchanges such as the NYSE, NASDAQ, and LSE by enabling founders and entrepreneurs to raise capital without relinquishing strategic control. With the Multiple Voting Share Directive (MVSD), the EU introduces a harmonised legal framework allowing companies seeking admission to multilateral trading facilities (MTFs)—including SME growth markets—to adopt multiple voting rights under specified conditions. This allows companies to preserve influence while accessing capital markets, offering opportunities not only for start-ups but also for strategically important sectors and family-owned businesses
Croatia introduces Draft Foreign Direct Investment Screening Act
The Croatian Government has introduced the Draft Act on the Screening of Foreign Investments, which is currently undergoing public consultations. The Draft Act seeks to establish a foreign direct investment (FDI) screening mechanism in line with Regulation (EU) 2019/452 and OECD investment standards. Its aim is to create a national framework for reviewing FDIs that may pose risks to national security or public order. The Draft Act is open to public comments (via https://esavjetovanja.gov.hr/) until 3 October 2025. Scope of application The screening mechanism will apply to: Foreign investors – natural or legal persons from third countries, and EU entities that are under direct or