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In Cybersecurity, Data and Tech

European Union: General-purpose AI obligations under the EU AI Act kick in from 2 August 2025

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2 August 2025 was an important deadline under the EU AI Act: obligations for providers of general-purpose AI (GPAI) models entered into force, provided the model is placed on the market on or after this date. The European Commission and EU AI Office have been gearing up for this deadline with recently released Guidelines for providers of general-purpose AI models (the Guidelines) and a final General-Purpose AI Code of Practice (the Code). The Code was subject to the Commission and the AI Board assessing its adequacy. The Commission confirmed the Code’s formal approval on 1 August. The Guidelines provide an interpretative framework for understanding the obligations of providers of general-purpose AI models, and the Code offers specific measures suggested by the Commission that providers can implement to demonstrate that they meet these obligations.

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In Employment

European Union: Specific regulation of technological impact on the workforce ahead?

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The Committee on Employment and Social Affairs of the European Parliament recently published a draft report on digitalisation, AI and algorithmic management in the workplace. It makes a number of recommendations including for a directive specifically regulating ‘algorithmic management’ in the workplace with protections extending to self-employed individuals in addition to workers. There are a number of steps in the EU legislative process before these proposals could become legally binding. Given their significance, including the broad definition of ‘algorithmic management’, impacted organisations should nevertheless monitor if and how they develop.

In Product Regulation & Liability

European Union tightens rules on e-commerce and non-EU product safety

by , , , and 1 Min Read

On 9 July 2025, the European Parliament (EP) adopted a resolution pressing for sweeping reforms in the e-commerce and imports sector, with a focus on consumer protection, product regulation, and unfair competition.1 The resolution sets out a series of measures, including calling for the swift implementation of the Digital Product Passport (DPP), strengthened customs enforcement through reform of the Union Customs Code (UCC), and the removal of the EUR 150 customs duty exemption for low-value consignments. The resolution will now be put submitted to the European Council and the European Commission for consideration.

In Product Regulation & Liability

European Union: EU restricts access of Chinese medical devices to the European market

by , and 7 Mins Read

For the first time, the European Commission completed an investigation under the International Procurement Instrument (IPI) and implemented measures to limit the participation of economic operators from non-EU countries – in this particular case, China – in the EU public procurement market. After EU suppliers of medical devices have arguably been denied fair access to Chinese government contract opportunities for years, the EU has now responded with Implementing Regulation (EU) 2025/1197 that requires contracting authorities/entities in all EU member states to exclude Chinese suppliers – and to a certain extent products manufactured in China – from larger public procurement contracts for medical devices.

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In AML & Financial Services Regulatory

European Union: New draft decree on Open Finance | July 2025

by , and 3 Mins Read

In recent years, the European Union has intensified its efforts to combat the abusive use of corporate structures lacking real substance, particularly in the tax domain. In this context, the ATAD III Directive proposal emerged, aimed at limiting the tax benefits of so-called “shell companies”. Although its implementation would have significantly impacted holding entities such as Spanish ETVEs, the project was ultimately abandoned in June 2025. This document analyzes the scope of the proposal, its implications, and current recommendations for groups with international structures.

In Corporate Compliance

European Union: Council adopts negotiating position on investment control reform

by , , , and 5 Mins Read

On 12 June 2025, the representatives of the EU Member States in the Committee of Permanent Representatives (Coreper) approved the Council’s negotiating mandate to revise Regulation (EU) 2019/452 (EU FDI Screening Regulation) on the screening of foreign direct investment (FDI). This clears the way for the so-called trialogue negotiations with the European Parliament and the European Commission. The aim of the reform is to strengthen the EU’s ability to respond to security-related risks of foreign investments and forms part of the EU Commission’s agenda of an ‘open strategic autonomy’ – while at the same time maintaining an open and investment-friendly environment.

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In Anti-Corruption

Webinar Summary: Global enforcement priorities and challenges – Thursday 5 June 2025

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In this session, a panel of speakers from across Baker McKenzie discussed global enforcement priorities and challenges. Trends in the EU (such as the proposed EU Directive on anti-corruption) were noted, but the panel focused, in particular, on Asia, Africa and Latin America.

In ESG

European Union: The European Commission’s action plan to drive innovation, sustainability and competitiveness in the automotive sector

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On 5 March 2025, the European Commission presented an industrial action plan to drive innovation, sustainability and competitiveness in the automotive sector. The plan seeks to offer a comprehensive strategy aimed at maintaining the global competitiveness of the European automotive industry while navigating the transition to clean mobility and digital integration. Simultaneously, it seeks to address challenges such as access to raw materials, uncompetitive trade practices and rising production costs.

In ESG

European Union: Parliament gives green light to postpone compliance timelines of CSRD and CSDDD

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In February 2025, the EU Commission introduced the Omnibus Simplification Package to streamline sustainability regulations. This package includes two proposed Directives: the “Stop-the-clock” Directive, which proposes delaying the CSRD and CSDDD compliance timelines, and a second Directive that suggests substantive changes to both the CSRD and CSDDD. The “Stop-the-clock” Directive is now close to being approved, giving businesses more certainty on the timeline for compliance.

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