How are companies responding to the uptick in digital regulation?

CMS has conducted an in-depth study –Grasping the opportunity in Digital Regulation– on how companies are responding to the upturn in digital regulation. To this end, 450 General Counsels and legal directors of companies in the European Union and the United Kingdom were interviewed.

The study aims to highlight the perceived effects on innovation, competition, protection and cross-border consistency for companies operating in the following sectors: platforms/intermediaries, online intermediary services, content providers, life sciences & healthcare, energy & infrastructure, banking & finance, and automotive.

The main conclusions of this study:

Companies’ response to regulation will determine their success in the digital age.

• 76% agree that only those who adapt to digital regulation will succeed in this new economy.

• 73% agree that it is essential to act quickly in the face of new regulations to keep pace with digital innovation.

Businesses underestimate the impact of the EU’s non-personal data strategy.

• The EU is laying the foundations for a new data economy, but only:

o 9% consider non-personal data (NPD) to be “highly” strategic to their business.

o 13% believe that NPD regulation offers significant opportunities.

AI regulation presents more opportunities than threats.

• 94% believe that AI regulation offers “significant” or “moderate” opportunities, including the ability to compete on a secure playing field, with certainty and legal certainty.

• 80% believe AI regulation poses “significant” or “moderate” business threats, suggesting some concern about “over-regulation.”

Most in-house lawyers see regulation of digital platforms as a “significant” opportunity.

• 54% expect “significant” business opportunities to arise from regulation of digital platforms.

• This includes 71% of content providers, which have much to gain from regulation aimed at curbing the market power of recognized “gatekeepers.”

Most companies have assessed the impact of digital regulation. Now is the time to act.

• 73% have taken steps to assess the risks of digital regulation.

• 63% have consulted with an external advisor.

• Only 36% have reviewed their digital transformation plans, despite impending deadlines.

Digital Regulation Hub

CMS has launched its “Digital Regulation Hub”, the most comprehensive resource of key regulations, commentary and guidance to help navigate the regulatory landscape inside and outside the European Union.

The Digital Regulation Hub also features an interactive tracking tool that is regularly updated to account for new developments and resources for general counsels, senior managers and key business decision makers.