TMT 2024

TMT 2024 ‒ Global Overview

While 2023 was undeniably the break-through year for artificial intelligence (and more specifically generative AI tools, such as ChatGPT), looking ahead into 2024, it is nearly certain that AI will continue to dominate conversations. In 2024 we also expect an increasing uptake in the deployment of 5G networks across many markets, as a consequence boosting the market for the internet of things (as IoT will benefit from high-speed connectivity), as well as leading to a further rise of cloud and edge computing deals. Many organisations will require more computing resources and more flexibility in this respect, which most will find with “hyperscalers”.

Alongside these technological advances, the world is grappling with ongoing challenges, including geopolitical tensions, environmental concerns, and economic uncertainties, all of which impact the TMT sector. In addition, cybersecurity remains a paramount concern for both businesses and policymakers, while regulatory focus intensifies on emerging technologies such as artificial intelligence, and scrutiny surrounding the digital economy and the market dominance of tech giants remains high on the agenda of lawmakers worldwide.

For those both within and outside the sector, staying abreast of major technological and legal developments can be challenging. This guide aims to offer valuable insights into the legal frameworks governing key aspects of the TMT sector. Acknowledging the dynamic nature of the TMT field, this Chambers TMT Guide focuses on being topic-driven rather than providing an exhaustive overview. Our aim is to address common questions that lawyers and in-house counsel frequently encounter in this era of permanent change.

Metaverse

The metaverse is a term describing a hypothetical enhanced digital environment in which we will be able to move smoothly between several spheres such as social, work, leisure and retail in one single digital environment. The metaverse could also be seen as the integration of the digital world and the physical world.

It could radically transform the way humans interact with technology and the offerings of technology companies. Meta (Facebook) is a big stakeholder in this respect and has made the metaverse one of its top priorities. Apple has recently also entered the arena by launching a mixed reality headset.

No specific laws for the metaverse have been introduced yet, but it raises many questions relating to intellectual property, enforcement, privacy, and (cyber)security.

Digital economy

Until the adoption of the EU Digital Markets Act (DMA) and the EU Digital Services Act (DSA) in 2022, there were only limited rules for digital services. This led to the introduction of a whole range of soft law instruments and legal uncertainty. The DSA became applicable on 17 February 2024 and as of 7 March 2024 the companies designated as “gatekeepers” will have to comply with the DMA. It remains to be seen how these instruments will be implemented in the EU member states over the next year and how significant the impact on the TMT sector will be.

Cloud and edge computing

In today’s interconnected world, the concept of “cloud" permeates every aspect of our daily lives, from entertainment and finance to communication and commerce. This pervasive integration brings forth a delicate balance between accessibility and control, with licensing models often superseding traditional notions of ownership. Organisations may have more flexibility and more easy access to computing resources but will at the same time be confronted with an increased level of dependency on their service providers and additional business continuity and security risks.

This shift towards cloud and edge computing introduces myriad legal considerations, from sector-specific regulations to data protection and liability concerns.

Artificial intelligence

The rise of artificial intelligence continues to reshape industries and societies, with innovations such as ChatGPT pushing the boundaries of what machines can achieve. However, this rapid advancement brings complex legal and societal challenges with it, including questions of liability, data protection, intellectual property, and fundamental rights. As businesses harness the power of AI, navigating the legal landscape (including the new European AI Act) becomes paramount to ensure responsible and ethical deployment of these technologies.

Internet of things (IoT)

IoT is a small acronym for something so large. The internet of things (IoT) expands its reach into every aspect of our lives, from smart homes to connected vehicles and industrial sensors. However, this proliferation of connected devices also introduces new security risks and legal considerations. As hackers target vulnerable IoT devices, the need for robust cybersecurity measures becomes increasingly urgent. Legal frameworks must adapt to address challenges such as data protection, communications security, and regulatory compliance in this rapidly evolving landscape.

Audio-visual media services

The digital transformation has democratised content creation, allowing organisations of all sizes to establish digital communications channels. However, this proliferation of online content triggers regulatory considerations, particularly regarding audio-visual media services. Understanding the applicability of regulations to online video channels and user-generated content is essential for compliance and risk management in this evolving legal landscape.

Telecommunications

Telecommunications regulations have evolved to encompass new technologies and communication methods, from voice-over IP (VoIP) to instant messaging and 5G networks. Compliance with regulatory frameworks is essential for organisations delivering electronic communication services, ensuring adherence to obligations related to network security, privacy, and consumer protection. As technology continues to advance, staying abreast of regulatory developments remains crucial for successful and compliant service provision.

Challenges with technology agreements

Navigating technology agreements in a global economy requires careful consideration of specific requirements and restrictions. From data localisation requirements to price-revision mechanisms, understanding the applicable legal frameworks is essential when selecting technology providers and negotiating contracts. By staying informed and proactive, organisations can mitigate risks and maximise opportunities in their technology agreements.

Trust services and digital identity

As online transactions become increasingly prevalent, trust services and digital identity schemes play a critical role in authentication and identification. Understanding the legal framework surrounding these technologies is essential to ensuring secure transactions. By staying informed about applicable regulations and best practices, organisations can navigate the evolving landscape of trust services and digital identity with confidence.