PE investors need to be attuned to antitrust issues, particularly on the sell side, when investing in technology given the current US Federal Trade Commission’s aggressive approach to enforcement and focus on big tech. National security concerns and data security also loom large. Download the full PEI Keynote Interview to understand how antitrust, national security and data protection issues are key to PE firms when executing deals in the technology industry.
The United Kingdom just hosted the first-ever global Artificial Intelligence Safety Summit on 1 and 2 November 2023, an event that brought international attention to the regulation of Artificial Intelligence. UK Prime Minister Sunak underscored the urgency for global collaboration in the governance of AI, a technology that defies national boundaries and demands a collective regulatory approach. The summit’s outcome was the Bletchley Declaration, a commitment signed by leading nations, including Germany, the United States, and China, to enhance cooperation in the development and regulatory oversight of AI technologies.
Cybersecurity threats and risks are increasing each day, and cybercriminals are getting more sophisticated in their attacks. Companies need to ensure that their data security measures keep up with ever-changing regulations and that they have protocols in place to deal with cyber threats, breaches, and ransomware attacks. Retail brands recognize that in an increasingly connected world, cybersecurity should remain a top priority.
On 3 October 2023, the OECD published the Multilateral Convention to Facilitate the Implementation of Pillar Two’s Subject to Tax Rule (STTR). As a reminder, the STTR is an integral part of the Pillar Two package, which consists of domestic rules (the GloBE rules) and a treaty-based rule, the STTR. One of the key differences compared to the GloBE rules is that the STTR is not limited to MNE groups with a consolidated turnover exceeding the EUR 750 million threshold.
Baker McKenzie has a long-standing history of participation and involvement in the UN Climate Change Conference of the Parties (COP), advising governments, companies and other entities on implementing the Paris Agreement and leading on the development of both international and domestic carbon markets.
The team will be on the ground in Dubai for COP28 and look forward to engaging in ground-breaking discussions with all key stakeholders to share insights and continue to offer cutting-edge advice to our clients. In the meantime, we have prepared a series of primers on what we expect to be some of the key themes for COP28.
A text of the Multilateral Convention to implement Amount A of Pillar One and additional explanatory guidance was released on 11 October 2023 by the OECD. This text reflects the consensus achieved so far, but is not yet open to signature and changes could still be made.
The proliferation of sustainability-related disclosures is a key trend in the prevailing socio-economic and legislative landscape. Tax – an increasingly important metric in the sustainability agenda – is starting to follow suit. In recent years, global, regional, and domestic measures have emerged with a view to increasing tax transparency, and this trend shows no sign of abating.
In this article, which is part of our ESG & Tax series, we outline the evolving tax transparency landscape and identify some of the key trends for businesses to get to grips with.
Artificial Intelligence (AI) is driving new business opportunities across a growing number of industry sectors, including consumer goods and retail. Enticed by its transformative potential, companies are actively exploring, experimenting, and deploying AI solutions in business processes, products, and services and are finding ways to derive business value from it. The emergence of generative AI capable of human-like text that can analyze vast amounts of data and create new content has caught the public’s attention and turbocharged interest in potential use cases in the CG&R industry.
It has become clear that flexibility is currency in the new working world and legal frameworks are evolving to catch up with the changing working culture. Four-day work-weeks, flexible working arrangements and the right to disconnect are all on offer to employees, giving the opportunity for better work-life balance, and giving employers a competitive edge in talent retention.
On 17 July 2023, the OECD/G20 Inclusive Framework on BEPS released a package of documents as part of its continuing effort to implement the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy. On Pillar Two, this included further Administrative Guidance (including two new safe harbors) and the GLoBE Information Return, together with a report on the Subject to Tax Rule including a model treaty provision and accompanying commentary. We set out below our experts’ insights on these publications.