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Europe recalibrates: AI copyright and GDPR scope under pressure
Two parallel developments suggest that Europe is drawing clearer boundaries around both AI ownership and data protection. One comes from the Council and the other from a German court, and both signal a more cautious approach toward redefining legal fundamentals in the name of innovation or administrative simplification. 1. Digital omnibus leak: Member States cut the core of the proposed GDPR reform A leaked Council compromise draft removes entirely the proposed redefinition of “personal data” under the GDPR, and that alone underscores how controversial the Digital Omnibus has become. What happened? In November 2025, the European Commission launched the Digital Omnibus, with one of its central ambitions
Understanding the legal landscape of private credits
Private credit has become one of the fastest‑growing segments of modern finance, offering flexible alternatives to traditional lending. Our cross‑border overview brings together the key legal questions that arise across 12 jurisdictions, helping investors, lenders, and borrowers navigate an increasingly complex regulatory environment. This guide highlights the most important considerations—including licensing, security, financial assistance, tax aspects, and insolvency implications—to support more informed decision‑making in private credit transactions throughout Emerging Europe and Central Asia. Partner Tomáš Melišek drove the preparation of the material with the support of local teams of legal experts
Europe’s AI rulebook is taking shape, but the technology is not waiting
Artificial intelligence is entering a decisive phase in Europe. Despite the EU’s ambitious AI Act framework, key guidance remains pending while enforcement scrutiny intensifies and AI adoption accelerates. 1. EU AI Act: a strict framework struggling to keep pace While Europe’s ambition to regulate AI is unquestioned, recent developments signal that the legal framework is struggling to keep pace with both the rapid evolution of the technology and its own aspirations. 1.1. Missed Guidance and Growing Uncertainty The European Commission missed a key deadline on 2 February, when it failed to publish a comprehensive list of use cases to help businesses distinguish between high-risk and non-high-risk
Digital Product Passports: The regulatory shift fashion brands need to plan for
Fashion and luxury brands selling into the EU should prepare for a regulatory shift that will directly affect how products are documented, traced and placed on the market. Regulatory work is now intensifying on implementing measures, including the rollout of Digital Product Passports (DPPs). DPPs are becoming a central instrument in the EU’s strategy to advance circularity, transparency and sustainability. For the fashion industry, DPPs represent not only a compliance obligation, but a shift in how product data and supply chains are managed. DPPs as a new regulatory standard A Digital Product Passport will function as a product’s digital identity, containing information on origin, material composition
EU Pay Transparency Directive: CEE transposition status
The EU Pay Transparency Directive marks a significant shift in how organisations approach pay equity and transparency. Its core objective is to strengthen the principle of equal pay for equal work and work of equal value. EU Member States must transpose the Directive into national law by 7 June 2026, which means the clock is ticking for employers to prepare. Our Employment & Labour Law team prepared an overview summarising the transposition status of the Directive in the CEE as of January 2026. Click on the image below or use this link to read our overview in English.
Navigating the MiCA landscape: Considerations for forum shopping in CEE and beyond
As the European financial market undergoes a major digital transformation, the implementation of the Markets in Crypto-Assets Regulation (MiCA) stands out as a defining milestone. By introducing a harmonised legal framework, the EU is transforming from a frag mented regulatory landscape into the world’s largest single market for regulated digital assets. For crypto-asset service providers (CASPs) and institutional investors, this shift offers a “single passport”, legitimising the industry and enabling growth. Yet the practical application of these rules varies across Member States, influenced by differences in administrative capacity, supervisory culture, and national legal traditions. Choosing a “home” jurisdiction
AI automation: The buzzword behind the layoff waive?
Layoffs have reached historic highs this year, and the AI arms race could be partly to blame. In the United States, over one million jobs were cut between January and October, up 65% from the same period in 2024, according to a report by outplacement specialists Challenger, Gray & Christmas. From Amazon and UPS to Microsoft and Meta, a growing number of companies are restructuring their workforce as they adopt AI at scale. These decisions raise a broader question: how far and how fast can companies go when replacing human work with artificial intelligence? While automation at scale is not a one-size-fits-all solution, the hard truth is that the skills and jobs needed in the future of work are still largely unknown. As
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