3

The Digital Business sectorDigital Revolution – Legal Transformation

Our vision for the digital

future

A world where technological innovation and the internet know no boundaries. Where the speed of change is making traditional legal issues more complex and generating new challenges, on a global basis.

Where genuine Digital Business legal expertisewill make all the di�erence.

An introduction by Adrian Bott 01

Telecoms and mobile 02

AdTech 04

Social media 06

Data 08

Outsourcing 10

Our vision for the digital future 12

Cloud and technology 14

Interactive entertainment 16

Advertising 18

Online commerce and payments 20

Internet of Things and telematics 22

Contact us 24

Our vision for the digital

future

A world where technological innovation and the internet know no boundaries. Where the speed of change is making traditional legal issues more complex and generating new challenges, on a global basis.

Where genuine Digital Business legal expertisewill make all the difference.

Our vision for the digital

future

A world where technological innovation and the internet know no boundaries. Where the speed of change is making traditional legal issues more complex and generating new challenges, on a global basis.

Where genuine Digital Business legal expertisewill make all the difference.

An introduction by Adrian Bott 01

Telecoms and mobile 02

AdTech 04

Social media 06

Data 08

Outsourcing 10

Our vision for the digital future 12

Cloud and technology 14

Interactive entertainment 16

Advertising 18

Online commerce and payments 20

Internet of Things and telematics 22

Contact us 24

An introduction by Adrian Bott 01

Telecoms and mobile 02

AdTech 04

Social media 06

Data 08

Outsourcing 10

Our vision for the digital future 12

Cloud and technology 14

Interactive entertainment 16

Advertising 18

Online commerce and payments 20

Internet of Things and telematics 22

Contact us 24

Converged world.Combined expertise.Connected results.

Interactive entertainment

Social media

Data privacy& IT security

IT outsourcing

Internet of Things& robotics

Payments& FinTech

Data analytics& A.I.

Advertising& AdTech

Mobile telecoms & apps

Online commerce

Digital mediaplatforms & content

Cloud & SaaS

Business intelligence & publishing

Digital business

25

Digital Business is driving an unprecedented convergence of people, businesses and things, disrupting models as it goes.

It isn’t just the depth and reach of convergence that is unprecedented – it is the pace. It took 75 years for the telephone to reach 50 million users worldwide; the internet connected the same number of people within four years; Xiaomi, the Chinese electronics group, had already sold more than that number of its ‘Mi’ smartphones in half that time; and there are now algorithms enabling multi-dimensional data analysis at 4 terabytes per second.

In this guide, we lay out our vision for the digital future and how we shape our legal services and expertise to meet the challenges this evolution brings. Rather than the traditional linear concept of ‘TMT’, we see Digital Business through the eyes of our clients: in reality all elements are inter-connected and inter-dependent in a ‘virtual’ loop.

Across OC’s international offices we collaborate to deliver holistic advice – whether regulatory, advisory or transactional – around the full loop.

Our Digital Business team is the largest of OC’s specialist sector groups – and it’s at the forefront of our international expansion. We have positioned ourselves in the key centres of innovation – Silicon Valley, San Francisco, London and Berlin among others – and in key markets (including Asia).

This ensures that the expertise we generate from acting for a spectrum of clients, from the newest “disrupters” to world-class global businesses, is honed with genuine sector knowledge.

Our vision is simple: in a digital future we shall be the best-equipped international law firm for Digital Business. Our offer is also simple: to be relevant to clients on a relationship basis, combining first-class technical capability with global market intelligence and a deep sector understanding. In short, offering them competitive advantage.

Digital Business spans so far and wide that it’s impossible to tell you everything about our practice in this guide, but I hope that its insights into our strengths and our passion for this area will inspire you to learn more about what we can help your business to achieve.

Adrian BottPartner, International Head of Digital Business

Introduction

With more than 7bn people and businesses, and at least 35bn devices, communicating, sharing, transacting and even negotiating with each other, a new world has come into being: the world of Digital Business.

01

An introduction by Adrian Bott 01

Telecoms and mobile 02

40 hceTdA

Social media 06

80 ataD

01 gnicruostuO

Our vision for the digital future 12

Cloud and technology 14

Interactive entertainment 16

81 gnisitrevdA

Online commerce and payments 20

Internet of Things and telematics 22

Contact us 24

Converged world.Combined expertise.Connected results.

Interactive entertainment

Social media

Data privacy& IT security

IT outsourcing

Internet of Things& robotics

Payments& FinTech

Data analytics& A.I.

Advertising& AdTech

Mobile telecoms & apps

Online commerce

Digital mediaplatforms & content

Cloud & SaaS

Business intelligence & publishing

Digital business

Digital Business is driving an unprecedented convergence of people, businesses and things, disrupting models as it goes.

It isn’t just the depth and reach of convergence that is unprecedented – it is the pace. It took 75 years for the telephone to reach 50 million users worldwide; the internet connected the same number of people within four years; Xiaomi, the Chinese electronics group, had already sold more than that number of its ‘Mi’ smartphones in half that time; and there are now algorithms enabling multi-dimensional data analysis at 4 terabytes per second.

In this guide, we lay out our vision for the digital future and how we shape our legal services and expertise to meet the challenges this evolution brings. Rather than the traditional linear concept of ‘TMT’, we see Digital Business through the eyes of our clients: in reality all elements are inter-connected and inter-dependent in a ‘virtual’ loop.

Across OC’s international offices we collaborate to deliver holistic advice – whether regulatory, advisory or transactional – around the full loop.

Our Digital Business team is the largest of OC’s specialist sector groups – and it’s at the forefront of our international expansion. We have positioned ourselves in the key centres of innovation – Silicon Valley, San Francisco, London and Berlin among others – and in key markets (including Asia).

This ensures that the expertise we generate from acting for a spectrum of clients, from the newest “disrupters” to world-class global businesses, is honed with genuine sector knowledge.

Our vision is simple: in a digital future we shall be the best-equipped international law firm for Digital Business. Our o�er is also simple: to be relevant to clients on a relationship basis, combining first-class technical capability with global market intelligence and a deep sector understanding. In short, o�ering them competitive advantage.

Digital Business spans so far and wide that it’s impossible to tell you everything about our practice in this guide, but I hope that its insights into our strengths and our passion for this area will inspire you to learn more about what we can help your business to achieve.

Adrian BottPartner, International Head of Digital Business

Introduction

With more than 7bn people and businesses, and at least 35bn devices, communicating, sharing, transacting and even negotiating with each other, a new world has come into being: the world of Digital Business.

01

As with many convergent products, the shiny end result belies the legal and technical complexities under the lid. I deal with the challenge of identifying and applying laws from a bricks-and-mortar age to converged products and services daily. It’s fascinating to witness first-hand the convergence not only of technology but also of the business models of the ISPs involved – they saw this TV platform as an integral part of their engagement, monetisation and retention strategy.

Even if they do not talk about convergence, consumers are clearly hungry for it. In the EU – with its market of 750 million people – the typical living room has five connected devices. On top of this, the average time per day that a smartphone-owner spends online has nearly doubled to 195 minutes in the past two years, according to Analysis Mason’s 2014 report. Recent telecoms deals across Europe show that the main players are moving fast to satisfy rising demand.

The main players are currently focusing on content as a way to differentiate themselves, strengthen consumer loyalty and reduce churn. Content also enables them to increase average revenue per user by upselling data packages and additional services. Examples of the focus on content include EE’s launch of its film store, BT’s explosive entry into the sports rights market and Vodafone’s acquisitions of ONO and Kabel Deutscheland.

At OC we’re dealing with issues in this area on a day-to-day basis. Since joining, I’ve worked with businesses from top industry players to start-ups on some of their most innovative and disruptive projects, including the legal implications of storing content in the cloud and the launch of new devices and services.

In the connected world there are always data protection and e-commerce issues to grapple with. We aim to resolve these in a way that means the client can both fulfil their objectives and retain customers.

For example, we recently conducted a survey in which clients reported a drop-off rate of up to 40% when an additional step was introduced into an online purchase process. We use that sort of knowledge to make sure that the legal solutions we construct really help the businesses we advise.

With technology this cutting-edge, our work isn’t always about existing law. We’re currently working with a group of companies, including Vodafone, Sky, O2, Three, Talk Talk, BT, Microsoft and Symantec, to submit a lobbying paper to the UK government on forthcoming changes to consumer rights legislation.

Many market leaders believe that we’re only really at the beginning of a tech-led, mobile-first, cloud-first revolution. The pace of change we’ve seen since the advent of the first iPhone is nothing compared to what we’ll see by 2020. For me, that’s as exciting as it is challenging.

Digital media specialist and UK partner John Davidson-Kelly, who spent three years working within this fast-moving sector, explains how OC is helping clients overcome the hurdles.

Digital convergence has moved centre stage. ISPs and mobile operators no longer provide just data and voice packages: the big players now are moving into the realm of quad play – offering the four components of fixed line, mobile, broadband and television.

I lived and breathed convergence in this sector for three years in my role as Head of Legal at YouView, a hybrid internet and broadcast television platform. I realised that this new approach to digital delivery requires a different way of working behind the scenes – and legal advice needs to be constructed in a way that reinforces these trends.

Telecoms and mobile

Internet Service Providers (ISPs) and mobile operators across Europe are changing dramatically to meet an explosion in consumer demand. But with the law lagging behind, technology businesses are facing significant challenges.

200%The average time per day that a smartphone-owner spends online has nearly doubled in the past two years.Analysis Mason’s 2014 report

02 03

As with many convergent products, the shiny end result belies the legal and technical complexities under the lid. I deal with the challenge of identifying and applying laws from a bricks-and-mortar age to converged products and services daily. It’s fascinating to witness first-hand the convergence not only of technology but also of the business models of the ISPs involved – they saw this TV platform as an integral part of their engagement, monetisation and retention strategy.

Even if they do not talk about convergence, consumers are clearly hungry for it. In the EU – with its market of 750 million people – the typical living room has five connected devices. On top of this, the average time per day that a smartphone-owner spends online has nearly doubled to 195 minutes in the past two years, according to Analysis Mason’s 2014 report. Recent telecoms deals across Europe show that the main players are moving fast to satisfy rising demand.

The main players are currently focusing on content as a way to differentiate themselves, strengthen consumer loyalty and reduce churn. Content also enables them to increase average revenue per user by upselling data packages and additional services. Examples of the focus on content include EE’s launch of its film store, BT’s explosive entry into the sports rights market and Vodafone’s acquisitions of ONO and Kabel Deutscheland.

At OC we’re dealing with issues in this area on a day-to-day basis. Since joining, I’ve worked with businesses from top industry players to start-ups on some of their most innovative and disruptive projects, including the legal implications of storing content in the cloud and the launch of new devices and services.

In the connected world there are always data protection and e-commerce issues to grapple with. We aim to resolve these in a way that means the client can both fulfil their objectives and retain customers.

For example, we recently conducted a survey in which clients reported a drop-off rate of up to 40% when an additional step was introduced into an online purchase process. We use that sort of knowledge to make sure that the legal solutions we construct really help the businesses we advise.

With technology this cutting-edge, our work isn’t always about existing law. We’re currently working with a group of companies, including Vodafone, Sky, O2, Three, Talk Talk, BT, Microsoft and Symantec, to submit a lobbying paper to the UK government on forthcoming changes to consumer rights legislation.

Many market leaders believe that we’re only really at the beginning of a tech-led, mobile-first, cloud-first revolution. The pace of change we’ve seen since the advent of the first iPhone is nothing compared to what we’ll see by 2020. For me, that’s as exciting as it is challenging.

Digital media specialist and UK partner John Davidson-Kelly, who spent three years working within this fast-moving sector, explains how OC is helping clients overcome the hurdles.

Digital convergence has moved centre stage. ISPs and mobile operators no longer provide just data and voice packages: the big players now are moving into the realm of quad play – offering the four components of fixed line, mobile, broadband and television.

I lived and breathed convergence in this sector for three years in my role as Head of Legal at YouView, a hybrid internet and broadcast television platform. I realised that this new approach to digital delivery requires a different way of working behind the scenes – and legal advice needs to be constructed in a way that reinforces these trends.

Telecoms and mobile

Internet Service Providers (ISPs) and mobile operators across Europe are changing dramatically to meet an explosion in consumer demand. But with the law lagging behind, technology businesses are facing significant challenges.

200%The average time per day that a smartphone-owner spends online has nearly doubled in the past two years.Analysis Mason’s 2014 report

02 03

Steve Wilson (Silicon Valley), Tim Birt (London and New York) and Ulrich Baumgartner (Munich) analyse the AdTech revolution.

AdTech gives brands their most powerful tool-kit so far for analysing and targeting consumers and a much-needed source of revenue for online publishers. AdTech’s impact on the market is undeniable: software solutions and SaaS-based platforms can be scaled to suit individual businesses and can be combined with traditional marketing techniques. The consequent consumer interactions produce incredibly precise, instant and continuous information, and valuable consumer insight. Given that, it is perhaps not surprising that the sector has attracted significant investment on both sides of the Atlantic.

While the US market has developed high-profile hubs on the West and East Coasts, particularly Palo Alto and NYC, Europe has also developed AdTech hubs in London, Munich, Hamburg and Madrid. There is also a mobile-led centre of excellence in Barcelona.

However, despite its rapid growth and critical importance to the marketing services industry, AdTech is an extremely fragmented industry involving multiple sub-sectors, including data-driven programmatic ad-servicing, content-led ‘native’ advertising and customer acquisition via pay-per-click and cross-device re-targeting. This fragmentation, alongside the rapid migration from desk-top to mobile, has created new challenges for an industry that is already operating within an increasingly complex regulatory environment.

For example, the proposed General Data Protection Regulations are expected to bring a new era in EU-wide regulation and encourage local regulators to be more active. The Regulations will also introduce the principle of ‘privacy by design’, highlighting the need for legal compliance throughout the development process. This places an increasing emphasis on AdTech providers and their customers to ensure they are compliant and avoid regulatory and privacy issues.

AdTech techniques already dominate the market. In five years’ time they will be at the heart of all advertising software systems – and the leading players will be those who clear the current investment, technology and regulatory hurdles in the most sophisticated and scalable ways.

Today regulation lags behind technology and consumer behaviour and it is essential that the AdTech industry works collaboratively and proactively to help shape the legislative framework within which it is to operate. This is particularly important considering how much more powerful tracking, analysis and reporting tools will be in future.

AdTech

Along with social media, AdTech has played a key role in opening up two-way communications between brands and consumers, while offering a valuable source of income to online publishers. But as AdTech evolves, developers, publishers, brands and investors need to keep a careful eye on the opportunities and risks – particularly increased levels of operational complexity, specialisation and regulation.

79%of European media buying agencies were using programmatic advertising in early 2014 (AppNexus).

“AdTech gives brands their most powerful tool-kit so far.” Tim Birt, Partner, Osborne Clarke

0504

Steve Wilson (Silicon Valley), Tim Birt (London and New York) and Ulrich Baumgartner (Munich) analyse the AdTech revolution.

AdTech gives brands their most powerful tool-kit so far for analysing and targeting consumers and a much-needed source of revenue for online publishers. AdTech’s impact on the market is undeniable: software solutions and SaaS-based platforms can be scaled to suit individual businesses and can be combined with traditional marketing techniques. The consequent consumer interactions produce incredibly precise, instant and continuous information, and valuable consumer insight. Given that, it is perhaps not surprising that the sector has attracted significant investment on both sides of the Atlantic.

While the US market has developed high-profile hubs on the West and East Coasts, particularly Palo Alto and NYC, Europe has also developed AdTech hubs in London, Munich, Hamburg and Madrid. There is also a mobile-led centre of excellence in Barcelona.

However, despite its rapid growth and critical importance to the marketing services industry, AdTech is an extremely fragmented industry involving multiple sub-sectors, including data-driven programmatic ad-servicing, content-led ‘native’ advertising and customer acquisition via pay-per-click and cross-device re-targeting. This fragmentation, alongside the rapid migration from desk-top to mobile, has created new challenges for an industry that is already operating within an increasingly complex regulatory environment.

For example, the proposed General Data Protection Regulations are expected to bring a new era in EU-wide regulation and encourage local regulators to be more active. The Regulations will also introduce the principle of ‘privacy by design’, highlighting the need for legal compliance throughout the development process. This places an increasing emphasis on AdTech providers and their customers to ensure they are compliant and avoid regulatory and privacy issues.

AdTech techniques already dominate the market. In five years’ time they will be at the heart of all advertising software systems – and the leading players will be those who clear the current investment, technology and regulatory hurdles in the most sophisticated and scalable ways.

Today regulation lags behind technology and consumer behaviour and it is essential that the AdTech industry works collaboratively and proactively to help shape the legislative framework within which it is to operate. This is particularly important considering how much more powerful tracking, analysis and reporting tools will be in future.

AdTech

Along with social media, AdTech has played a key role in opening up two-way communications between brands and consumers, while offering a valuable source of income to online publishers. But as AdTech evolves, developers, publishers, brands and investors need to keep a careful eye on the opportunities and risks – particularly increased levels of operational complexity, specialisation and regulation.

79%of European media buying agencies were using programmatic advertising in early 2014 (AppNexus).

“AdTech gives brands their most powerful tool-kit so far.” Tim Birt, Partner, Osborne Clarke

0504

;) #

Social media

Legal, Public Policy & Privacy Director Oscar Casado Oliva outlines the challenges ahead.

We’re much more than a social media company. We describe ourselves as the first Telecoms 2.0 company – as we were the first MVNO (Mobile Virtual Network Operator) to integrate secure social communication – instant messaging, sharing content, photos and video with voice calls. No one had previously offered both social media and telecoms services on a single app.

And that is our plan for development – to provide the market with new services that have never been offered before. We are also launching in Mexico, Peru and Argentina – and will go into other countries in Latin America, as well as the USA, Canada, Asia and Africa.

Our OTT (over-the-top content) cloud-based app is a free, downloadable service, enabling VoIP calls and sharing without consuming data/voice allowances. But there is a tariff for the telecoms side. So the services we offer – phone, SMS, photo-sharing, VoIP calls and the others – are all available through one device. It works on a multi-platform basis for smartphones and tablets. Everything is in the cloud.

We work in a fast-moving environment but the legal framework is less developed. My CEO says that he doesn’t want a lawyer who says ‘You can’t do that’. He wants one who says ‘This is how you do it’ – that’s why we’ve chosen to work with Osborne Clarke, a firm that makes things happen. So, for instance, we’ve been working with OC on the personal data notifications we have to make to customers.

Normally, this is done using lengthy legal disclaimers. But we’ve been working with OC on the possibility of using instantly recognisable icons instead. That is a real step forward.

We have to comply with Spanish and European law and, increasingly, that of other jurisdictions as we expand into new areas. OC has helped us with everything – including becoming an MVNO, our risks, regulation and growth abroad. One of the most important factors for us is their wide international experience; we are now working with OC on creating a global risk map.

Tuenti, pronounced like ‘twenty’, means ‘your identity’. That comes from ‘you’, like the French ‘tu’ and ‘identity’.

Once known as ‘the Spanish Facebook’, Tuenti outgrew that label by expanding into telecoms and is now better known as ‘the cloud phone company’. With its innovative value-added services, it reached 17m users in 2014.

“We describe ourselves as the first Telecoms 2.0 company.”Oscar Casado Oliva, Legal, Public Policy & Privacy Director

“My CEO says that he doesn’t want a lawyer who says ‘You can’t do that’. He wants one who says ‘This is how you do it’.”Oscar Casado Oliva, Legal, Public Policy & Privacy Director

0706

;) #

Social media

Legal, Public Policy & Privacy Director Oscar Casado Oliva outlines the challenges ahead.

We’re much more than a social media company. We describe ourselves as the first Telecoms 2.0 company – as we were the first MVNO (Mobile Virtual Network Operator) to integrate secure social communication – instant messaging, sharing content, photos and video with voice calls. No one had previously offered both social media and telecoms services on a single app.

And that is our plan for development – to provide the market with new services that have never been offered before. We are also launching in Mexico, Peru and Argentina – and will go into other countries in Latin America, as well as the USA, Canada, Asia and Africa.

Our OTT (over-the-top content) cloud-based app is a free, downloadable service, enabling VoIP calls and sharing without consuming data/voice allowances. But there is a tariff for the telecoms side. So the services we offer – phone, SMS, photo-sharing, VoIP calls and the others – are all available through one device. It works on a multi-platform basis for smartphones and tablets. Everything is in the cloud.

We work in a fast-moving environment but the legal framework is less developed. My CEO says that he doesn’t want a lawyer who says ‘You can’t do that’. He wants one who says ‘This is how you do it’ – that’s why we’ve chosen to work with Osborne Clarke, a firm that makes things happen. So, for instance, we’ve been working with OC on the personal data notifications we have to make to customers.

Normally, this is done using lengthy legal disclaimers. But we’ve been working with OC on the possibility of using instantly recognisable icons instead. That is a real step forward.

We have to comply with Spanish and European law and, increasingly, that of other jurisdictions as we expand into new areas. OC has helped us with everything – including becoming an MVNO, our risks, regulation and growth abroad. One of the most important factors for us is their wide international experience; we are now working with OC on creating a global risk map.

Tuenti, pronounced like ‘twenty’, means ‘your identity’. That comes from ‘you’, like the French ‘tu’ and ‘identity’.

Once known as ‘the Spanish Facebook’, Tuenti outgrew that label by expanding into telecoms and is now better known as ‘the cloud phone company’. With its innovative value-added services, it reached 17m users in 2014.

“We describe ourselves as the first Telecoms 2.0 company.”Oscar Casado Oliva, Legal, Public Policy & Privacy Director

“My CEO says that he doesn’t want a lawyer who says ‘You can’t do that’. He wants one who says ‘This is how you do it’.”Oscar Casado Oliva, Legal, Public Policy & Privacy Director

0706

5654322

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Data

OC client nugg.ad is Europe’s leading specialist in digital target group marketing and brand engagement measurement. Despite the fact that online advertising is facing complex regulatory issues, nugg.ad has developed unique approaches to predictive behavioural targeting for automated marketing campaigns and data protection, as well as compatibility with RTA and programmatic platforms.

Nicole Nauen, LL.M, Legal Counsel, and Christian Pfeiffer, Data Protection Officer, explain how they tackled and solved the challenges.

We are Europe’s largest targeting platform, offering real-time technology for audience targeting, brand advertising and data management. Our core technology has dedicated teams assisting different international companies – and all that is done in accordance with data protection rules. As a result nugg.ad has been awarded several data protection certificates.

nugg.ad faces significant challenges. We have to deal with both national and European laws as we work with publishers, advertisers, media agencies and ad networks from across Europe. For many of our services German law applies but our international clients have to meet the legal requirements of the country in which they are based. We give them the necessary guidelines to help them comply with existing laws and OC gives us important legal advice regarding the application of national law to our technology.

The legal issues are complicated as we work on ‘connected data processing’ – collecting, analysing and sharing data in the online advertising world. This is a new legal field in the EU, but OC has helped us work out what we need to do to meet the legal requirements of users. OC also prepared us for the implications of the decision by the European Court of Justice regarding the right to be forgotten. With their legal expertise we are able to offer our connected products in exactly the way we want to.

Dealing with these issues effectively is becoming even more important, as we believe that the use of real-time advertising techniques will increase in the future. There is a lot of uncertainty in the digital advertising market and there may be a lot of change. We have to work with lawyers who understand our business model – and the lawyers at OC know our sector very well. We are always working on new ideas, products and solutions. Explaining our business model to a lawyer without the expertise would be difficult, as we would have to explain a complex technological set-up with strict data protection rules.

nugg.ad is a subsidiary of Deutsche Post DHL with offices in Berlin, Hamburg, Cologne, London, Paris, Copenhagen, Oslo, Amsterdam, Milan and Warsaw.

“Explaining our business model to a lawyer without the expertise would be difficult, as we would have to explain a complex technological set- up with strict data protection rules.”Nicole Nauen, Legal Counsel, nugg.ad

“The legal issues are complicated as we work on ‘connected data processing’ – collecting, analysing and sharing data in the online advertising world.”Christian Pfeiffer, Data Protection Officer, nugg.ad

08 09

5654322

598323251

250143211

65678739045

250143211

65678739045

59211

Data

OC client nugg.ad is Europe’s leading specialist in digital target group marketing and brand engagement measurement. Despite the fact that online advertising is facing complex regulatory issues, nugg.ad has developed unique approaches to predictive behavioural targeting for automated marketing campaigns and data protection, as well as compatibility with RTA and programmatic platforms.

Nicole Nauen, LL.M, Legal Counsel, and Christian Pfeiffer, Data Protection Officer, explain how they tackled and solved the challenges.

We are Europe’s largest targeting platform, offering real-time technology for audience targeting, brand advertising and data management. Our core technology has dedicated teams assisting different international companies – and all that is done in accordance with data protection rules. As a result nugg.ad has been awarded several data protection certificates.

nugg.ad faces significant challenges. We have to deal with both national and European laws as we work with publishers, advertisers, media agencies and ad networks from across Europe. For many of our services German law applies but our international clients have to meet the legal requirements of the country in which they are based. We give them the necessary guidelines to help them comply with existing laws and OC gives us important legal advice regarding the application of national law to our technology.

The legal issues are complicated as we work on ‘connected data processing’ – collecting, analysing and sharing data in the online advertising world. This is a new legal field in the EU, but OC has helped us work out what we need to do to meet the legal requirements of users. OC also prepared us for the implications of the decision by the European Court of Justice regarding the right to be forgotten. With their legal expertise we are able to offer our connected products in exactly the way we want to.

Dealing with these issues effectively is becoming even more important, as we believe that the use of real-time advertising techniques will increase in the future. There is a lot of uncertainty in the digital advertising market and there may be a lot of change. We have to work with lawyers who understand our business model – and the lawyers at OC know our sector very well. We are always working on new ideas, products and solutions. Explaining our business model to a lawyer without the expertise would be difficult, as we would have to explain a complex technological set-up with strict data protection rules.

nugg.ad is a subsidiary of Deutsche Post DHL with offices in Berlin, Hamburg, Cologne, London, Paris, Copenhagen, Oslo, Amsterdam, Milan and Warsaw.

“Explaining our business model to a lawyer without the expertise would be difficult, as we would have to explain a complex technological set- up with strict data protection rules.”Nicole Nauen, Legal Counsel, nugg.ad

“The legal issues are complicated as we work on ‘connected data processing’ – collecting, analysing and sharing data in the online advertising world.”Christian Pfeiffer, Data Protection Officer, nugg.ad

08 09

Affiliates and near-shoringThierry Viérin, Partner, OC BelgiumNearshoring and offshoring are high on the Belgian agenda as a means of remaining competitive. Affiliated companies are often used – with one of our large IT clients showing the way through setting up a Polish affiliate for its accounting and finance functions. Large Belgian IT and telecoms players are extracting more efficiency gains from outsourcing. The big Indian IT groups have won much of this work.

Contracts and disputes Béatrice Delmas-Linel, Partner, OC France Growing awareness of IT security issues is leading to more sophisticated contractual frameworks. Economic pressures and time sensitivity around IT outsourcing projects are resulting in ever more frequent contract performance disputes. That highlights a need for clear contract terms, including for dispute resolution and reversibility, and for a minimum of contractual flexibility even for small projects.

What are the issues that are shaping the European outsourcing market? OC’s outsourcing experts talk about what they are working on.

Outsourcing Service and efficiency Ulrich Bäumer, Partner, OC Germany Multi-sourcing is replacing single-sourcing as businesses seek greater efficiency and specialist support. Increasingly, they are parcelling out smaller, modular projects and expecting higher levels of expertise. They are also appointing project managers to exert greater control over outsourcers and to push up service levels. As a result, efficiency and value for money have become far more important to businesses than outsourcer brand rankings.

Cloud and environmentJeroen Lub, Partner, OC Netherlands Low-cost cloud services outsourcing is growing in the Dutch market – with outsourced (big) data processing increasingly giving a competitive edge to many digital businesses. Accurate analysis and effective use of data are also important and that’s increasingly reflected in the way that outsourcing relationships are structured. We’re also seeing much more focus on sustainable outsourcing.

Short-term agreements and flexibility John Buyers, Partner, OC UKAs an extremely mature outsourcing market, the UK is seeing many companies trading through fourth- or even fifth-generation outsourcing. The trend for shorter-term agreements and multi-sourced vendor environments is growing, as is customer flexibility to transfer increasingly modular arrangements from one provider to another at very short notice.

10 11

Affiliates and near-shoringThierry Viérin, Partner, OC BelgiumNearshoring and offshoring are high on the Belgian agenda as a means of remaining competitive. Affiliated companies are often used – with one of our large IT clients showing the way through setting up a Polish affiliate for its accounting and finance functions. Large Belgian IT and telecoms players are extracting more efficiency gains from outsourcing. The big Indian IT groups have won much of this work.

Contracts and disputes Béatrice Delmas-Linel, Partner, OC France Growing awareness of IT security issues is leading to more sophisticated contractual frameworks. Economic pressures and time sensitivity around IT outsourcing projects are resulting in ever more frequent contract performance disputes. That highlights a need for clear contract terms, including for dispute resolution and reversibility, and for a minimum of contractual flexibility even for small projects.

What are the issues that are shaping the European outsourcing market? OC’s outsourcing experts talk about what they are working on.

Outsourcing Service and efficiency Ulrich Bäumer, Partner, OC Germany Multi-sourcing is replacing single-sourcing as businesses seek greater efficiency and specialist support. Increasingly, they are parcelling out smaller, modular projects and expecting higher levels of expertise. They are also appointing project managers to exert greater control over outsourcers and to push up service levels. As a result, efficiency and value for money have become far more important to businesses than outsourcer brand rankings.

Cloud and environmentJeroen Lub, Partner, OC Netherlands Low-cost cloud services outsourcing is growing in the Dutch market – with outsourced (big) data processing increasingly giving a competitive edge to many digital businesses. Accurate analysis and effective use of data are also important and that’s increasingly reflected in the way that outsourcing relationships are structured. We’re also seeing much more focus on sustainable outsourcing.

Short-term agreements and flexibility John Buyers, Partner, OC UKAs an extremely mature outsourcing market, the UK is seeing many companies trading through fourth- or even fifth-generation outsourcing. The trend for shorter-term agreements and multi-sourced vendor environments is growing, as is customer flexibility to transfer increasingly modular arrangements from one provider to another at very short notice.

10 11

A.I.Artificial intelligence will command increasing investment and deployment in the digital ecosystem. Already embedded more deeply in online life than many realise, the ability of computers to learn, process data ever faster and interact with (and outperform) the human brain will improve exponentially.

These predictions reflect real issues that our clients are facing. We are working with them to identify obstacles and solutions, as they turn their visions into reality. With many of these developments will come new legal issues – and that is where our Digital Business expertise will deliver its greatest value.

DataPrivacy regulation is all-pervasive but fragmented, and will need reform well before 2020. Personal data capture has mushroomed as smartphone reach and functionality has expanded to include sensors and online payments. As a result sophisticated encryption and security technologies are attracting increasing attention and investment.

Internet of ThingsThe current extent of early-stage investment indicates that IoT businesses are going to account for significant activity in the next five years.

Connected devices will spawn product categories that have the potential to become new household brands. Already significantly more advanced than the consumer market appreciates and accelerated by developments in machine learning, robotics will have a marked impact by 2020.

By 2020, more than half of the Earth’s population

will have internet access.

Predictions beyond the short term are not the business of this guide. However, the following insights into the digital future are gathered from our research, and from discussions

with the clients and intermediaries we work closely with. As such, we believe that they are born of tangible

trends in the direction and speed of travel.

“By 2020, more people will have cellular and 3G coverage than have access to fresh water and electricity.”

“By 2020 we will see significant new business opportunities and domination of A.I. by the key global tech brands, alongside some significant legal challenges.”

“Quantum cryptography, enabling unhackable data networks, will become a commercial reality. Apps, enabling visual expression of complex data analyses, will turn Big Data into fully actionable information.”

“Over US$1 billion is being injected into IoT companies annually, with health, telematics, smart homes and location-based technologies leading the deal tables.”

“4D printing (using hard and soft printing materials in combination) is likely to become commercially viable, undermining economies of scale and disrupting every field it touches.”

2020 Vision

Mobile Mobiles will account for more time connected online than all other means. Smartphones will outnumber traditional computers by three to one.

Coupled with economies of scale, falling development costs and advanced chip technology this will drive profound change to the internet, making wearables, Smart TV and the Connected Car ubiquitous.

PrintingThis area will make huge strides in the run-up to 2020. Not only will a larger range of materials be adapted for 3D printing but software and machine learning will drive exponential advances.

Medical applications, aviation and automotive parts, engineering and consumer goods will all be ‘printed’ in local centres for local delivery, changing online fulfilment models. 4D printing will revolutionise many aspects of our lives.

1312

A.I.Artificial intelligence will command increasing investment and deployment in the digital ecosystem. Already embedded more deeply in online life than many realise, the ability of computers to learn, process data ever faster and interact with (and outperform) the human brain will improve exponentially.

These predictions reflect real issues that our clients are facing. We are working with them to identify obstacles and solutions, as they turn their visions into reality. With many of these developments will come new legal issues – and that is where our Digital Business expertise will deliver its greatest value.

DataPrivacy regulation is all-pervasive but fragmented, and will need reform well before 2020. Personal data capture has mushroomed as smartphone reach and functionality has expanded to include sensors and online payments. As a result sophisticated encryption and security technologies are attracting increasing attention and investment.

Internet of ThingsThe current extent of early-stage investment indicates that IoT businesses are going to account for significant activity in the next five years.

Connected devices will spawn product categories that have the potential to become new household brands. Already significantly more advanced than the consumer market appreciates and accelerated by developments in machine learning, robotics will have a marked impact by 2020.

By 2020, more than half of the Earth’s population

will have internet access.

Predictions beyond the short term are not the business of this guide. However, the following insights into the digital future are gathered from our research, and from discussions

with the clients and intermediaries we work closely with. As such, we believe that they are born of tangible

trends in the direction and speed of travel.

“By 2020, more people will have cellular and 3G coverage than have access to fresh water and electricity.”

“By 2020 we will see significant new business opportunities and domination of A.I. by the key global tech brands, alongside some significant legal challenges.”

“Quantum cryptography, enabling unhackable data networks, will become a commercial reality. Apps, enabling visual expression of complex data analyses, will turn Big Data into fully actionable information.”

“Over US$1 billion is being injected into IoT companies annually, with health, telematics, smart homes and location-based technologies leading the deal tables.”

“4D printing (using hard and soft printing materials in combination) is likely to become commercially viable, undermining economies of scale and disrupting every field it touches.”

2020 Vision

Mobile Mobiles will account for more time connected online than all other means. Smartphones will outnumber traditional computers by three to one.

Coupled with economies of scale, falling development costs and advanced chip technology this will drive profound change to the internet, making wearables, Smart TV and the Connected Car ubiquitous.

PrintingThis area will make huge strides in the run-up to 2020. Not only will a larger range of materials be adapted for 3D printing but software and machine learning will drive exponential advances.

Medical applications, aviation and automotive parts, engineering and consumer goods will all be ‘printed’ in local centres for local delivery, changing online fulfilment models. 4D printing will revolutionise many aspects of our lives.

1312

However, there is one issue that is holding back many organisations: security. Issues like Edward Snowden’s NSA revelations and the ongoing US/EU privacy debate have understandably caused concerns. But the fact is that cloud providers are constantly tightening security in response to threats, regulation and other developments. This has led some commentators to say that the cloud offers better security in many cases than traditional on-premises infrastructure and systems.

Different cloud providers have differing approaches to security – so due diligence is vital, as is an assessment of the impact on service levels and cost. Contingency plans in the event of a breach must also be well thought out, as no system is totally secure.

The provider’s regulatory compliance also needs to be probed. Only one in a hundred providers, according to Skyhigh Networks, would currently comply with all aspects of the EU’s proposed General Data Protection Regulation, predicted to replace the Data Protection Directive in or after 2017.

However, it is a promising start if a provider complies with current requirements and can discuss the cost and contractual implications of the draft laws for businesses.

Many businesses are still looking for reassurance against vulnerability to hackers and transparency on costs and service levels. But Microsoft Azure, Google Cloud and Amazon Web Services have secured cloud computing’s place in mainstream IT services: the market is maturing and that in itself should give businesses the confidence to consider the cloud.

OC partners Béatrice Delmas-Linel and Emily Jones, based in France and the UK respectively, talk security.

The arguments for switching to the cloud are overwhelming for many businesses. Gone will be the heavy investment, maintenance and running costs associated with owning an IT infrastructure. In general, businesses will become lighter on their feet – able to expand and upgrade systems rapidly, responding to new business demands as they arise.

The cloud is now spreading from early adopters to the mainstream. At least 60 per cent of data centre computing will be run through the cloud by 2025, according to Emerson Network Power.

Cloud and technology

The transition to cloud computing is one of the most critical decisions facing many businesses. But one factor in particular is still preventing some businesses from making that move.

“Only one in a hundred cloud providers would currently comply with all aspects of the proposed EU General Data Protection Regulation.”Skyhigh Networks 2014

>60%of data centre computing will be run through the cloud by 2025.Emerson Network Power

1514

However, there is one issue that is holding back many organisations: security. Issues like Edward Snowden’s NSA revelations and the ongoing US/EU privacy debate have understandably caused concerns. But the fact is that cloud providers are constantly tightening security in response to threats, regulation and other developments. This has led some commentators to say that the cloud offers better security in many cases than traditional on-premises infrastructure and systems.

Different cloud providers have differing approaches to security – so due diligence is vital, as is an assessment of the impact on service levels and cost. Contingency plans in the event of a breach must also be well thought out, as no system is totally secure.

The provider’s regulatory compliance also needs to be probed. Only one in a hundred providers, according to Skyhigh Networks, would currently comply with all aspects of the EU’s proposed General Data Protection Regulation, predicted to replace the Data Protection Directive in or after 2017.

However, it is a promising start if a provider complies with current requirements and can discuss the cost and contractual implications of the draft laws for businesses.

Many businesses are still looking for reassurance against vulnerability to hackers and transparency on costs and service levels. But Microsoft Azure, Google Cloud and Amazon Web Services have secured cloud computing’s place in mainstream IT services: the market is maturing and that in itself should give businesses the confidence to consider the cloud.

OC partners Béatrice Delmas-Linel and Emily Jones, based in France and the UK respectively, talk security.

The arguments for switching to the cloud are overwhelming for many businesses. Gone will be the heavy investment, maintenance and running costs associated with owning an IT infrastructure. In general, businesses will become lighter on their feet – able to expand and upgrade systems rapidly, responding to new business demands as they arise.

The cloud is now spreading from early adopters to the mainstream. At least 60 per cent of data centre computing will be run through the cloud by 2025, according to Emerson Network Power.

Cloud and technology

The transition to cloud computing is one of the most critical decisions facing many businesses. But one factor in particular is still preventing some businesses from making that move.

“Only one in a hundred cloud providers would currently comply with all aspects of the proposed EU General Data Protection Regulation.”Skyhigh Networks 2014

>60%of data centre computing will be run through the cloud by 2025.Emerson Network Power

1514

Konstantin Ewald and Paul Gardner, OC partners and digital media specialists, based in Cologne and London respectively, predict the next moves.

Speak to anyone in the games industry and the conversation soon turns to the huge changes taking place in the market. From multi-platform products to changing consumer demographics, the issues affecting the sector are transformational. The shift to online services is also enabling developers to become publishers, requiring new business models and skill sets. For an industry that has only recently taken centre stage in the entertainment industry, it’s a challenging time.

The EU Consumer Rights Directive is actively shaping the market’s legal framework and publishers face a far stricter privacy regime, if the proposed EU Data Protection Regulation is implemented in 2017. These regulations may impact both design and profitability as publishers try to balance their need for data collection with the light-touch approach favoured by regulators. The issue of marketing to children is also high on the agenda, and this is likely to have an impact on how publishers operate in future.

Contractual relations between developers, publishers and other players are also changing to reflect the new world. For example, a contract for the development of an online game may need to accommodate agile software development and watertight service levels agreements during the production process and a live team after the release of a game, reflecting the need for continued development.

On the financing side, more money is available from alternative sources – helping developers to directly market their own games. Unfortunately, these new developments are placing increasing strain on the legal and regulatory framework. The German Court’s decision on the illegal use of key selling business models is just one example of how difficult copyright issues can be.

Add in controversies like #GamerGate and the ongoing debate about in-app purchases and it’s easy to see that the games industry is still going through significant change as it comes of age. For the industry, growth is dependent on unlocking new mass markets, which, in turn, is dependent on resolving these issues. And that’s something we’re working closely with the industry to achieve.

Interactive entertainment

The games market is going through some fundamental changes and businesses, large and small, need to adapt at speed. But what factors are pushing the rapid pace of change and, more importantly, what does the future hold?

65%of European developer companies are developing for mobile.GDC, 2014

“From multi-platform products to changing consumer demographics, the issues affecting the sector are transformational.”Paul Gardner, Partner, Osborne Clarke

16 17

Konstantin Ewald and Paul Gardner, OC partners and digital media specialists, based in Cologne and London respectively, predict the next moves.

Speak to anyone in the games industry and the conversation soon turns to the huge changes taking place in the market. From multi-platform products to changing consumer demographics, the issues affecting the sector are transformational. The shift to online services is also enabling developers to become publishers, requiring new business models and skill sets. For an industry that has only recently taken centre stage in the entertainment industry, it’s a challenging time.

The EU Consumer Rights Directive is actively shaping the market’s legal framework and publishers face a far stricter privacy regime, if the proposed EU Data Protection Regulation is implemented in 2017. These regulations may impact both design and profitability as publishers try to balance their need for data collection with the light-touch approach favoured by regulators. The issue of marketing to children is also high on the agenda, and this is likely to have an impact on how publishers operate in future.

Contractual relations between developers, publishers and other players are also changing to reflect the new world. For example, a contract for the development of an online game may need to accommodate agile software development and watertight service levels agreements during the production process and a live team after the release of a game, reflecting the need for continued development.

On the financing side, more money is available from alternative sources – helping developers to directly market their own games. Unfortunately, these new developments are placing increasing strain on the legal and regulatory framework. The German Court’s decision on the illegal use of key selling business models is just one example of how difficult copyright issues can be.

Add in controversies like #GamerGate and the ongoing debate about in-app purchases and it’s easy to see that the games industry is still going through significant change as it comes of age. For the industry, growth is dependent on unlocking new mass markets, which, in turn, is dependent on resolving these issues. And that’s something we’re working closely with the industry to achieve.

Interactive entertainment

The games market is going through some fundamental changes and businesses, large and small, need to adapt at speed. But what factors are pushing the rapid pace of change and, more importantly, what does the future hold?

65%of European developer companies are developing for mobile.GDC, 2014

“From multi-platform products to changing consumer demographics, the issues affecting the sector are transformational.”Paul Gardner, Partner, Osborne Clarke

16 17

London-based advertising law specialist Anna Williams explains in more detail.

Expedia is one of the world’s most successful travel companies and a leading digital business. As a truly global player with a large customer base, it uses international advertising and marketing campaigns to drive its business forward. That means not only being culturally astute but also making sure that campaigns comply with local regulatory regimes, often across numerous jurisdictions.

Each piece of marketing material has to be considered carefully. It doesn’t matter whether it’s a TV script, an email campaign or a prize promotion: all of the many localised versions need to work first time, every time.

The problem for any global business in this position is obtaining consistent, high-quality legal advice in multiple jurisdictions and then turning that into an action plan that will make the campaign work.

For a busy in-house team, the impact of continually having to procure multiple legal reviews, analyse them and feed back to the business in plain English can be enormous. That’s why, for the last four years, Expedia has worked alongside its longstanding legal adviser, OC, to co-ordinate EMEA reviews.

We work with Expedia’s legal and marketing teams through our own offices, as well as through our network of trusted advisers. Our work includes agreeing objectives, managing the collation of advice within Expedia’s overall legal review budget and, ultimately, creating a single easy-to-understand piece of legal advice for its in-house lawyers to action.

Despite many advertising campaigns running in any given month, our ‘Expedia Hub’ guarantees a fast turnaround, so that legal advice keeps up with the speed of the business and supports Expedia’s highly successful digital brand.

Advertising

Marketing compliance is never easy, but when your campaigns are global things can get very complex. In this case study, find out how we worked with global online travel giant Expedia to help them manage their multi-strand campaigns.

As a truly global player with a large customer base, it uses international advertising and marketing campaigns to drive its business forward.

1918

London-based advertising law specialist Anna Williams explains in more detail.

Expedia is one of the world’s most successful travel companies and a leading digital business. As a truly global player with a large customer base, it uses international advertising and marketing campaigns to drive its business forward. That means not only being culturally astute but also making sure that campaigns comply with local regulatory regimes, often across numerous jurisdictions.

Each piece of marketing material has to be considered carefully. It doesn’t matter whether it’s a TV script, an email campaign or a prize promotion: all of the many localised versions need to work first time, every time.

The problem for any global business in this position is obtaining consistent, high-quality legal advice in multiple jurisdictions and then turning that into an action plan that will make the campaign work.

For a busy in-house team, the impact of continually having to procure multiple legal reviews, analyse them and feed back to the business in plain English can be enormous. That’s why, for the last four years, Expedia has worked alongside its longstanding legal adviser, OC, to co-ordinate EMEA reviews.

We work with Expedia’s legal and marketing teams through our own offices, as well as through our network of trusted advisers. Our work includes agreeing objectives, managing the collation of advice within Expedia’s overall legal review budget and, ultimately, creating a single easy-to-understand piece of legal advice for its in-house lawyers to action.

Despite many advertising campaigns running in any given month, our ‘Expedia Hub’ guarantees a fast turnaround, so that legal advice keeps up with the speed of the business and supports Expedia’s highly successful digital brand.

Advertising

Marketing compliance is never easy, but when your campaigns are global things can get very complex. In this case study, find out how we worked with global online travel giant Expedia to help them manage their multi-strand campaigns.

As a truly global player with a large customer base, it uses international advertising and marketing campaigns to drive its business forward.

1918

Specialist e-commerce lawyer Tom Harding and expert payments lawyer Kate Johnson explore the regulatory issues facing the retail sector.

Consumer rights, privacy, payments and security are all issues that e-commerce players are well used to dealing with. However, the double whammy of the Consumer Rights Directive, which came into force in June 2014, and the proposed Second Payment Services Directive (PSD2), which is due to be implemented in 2017, creates a whole new series of regulatory headaches for retailers. The Consumer Rights Directive enhances consumer rights and imposes more defined customer purchase journeys, as well as surcharge and hidden charges restrictions. Many retailers have already tackled these challenges, with some exceeding the requirements of the regulations. The most effective examples offer customers equal rights across online or offline purchases as part of a wider ‘omni-channel’ approach.

The real challenge is determining where today’s complex, multi-channel sales journeys fit within the more traditional models envisaged by the Directive. Only then can retailers understand how to achieve compliance.

The realistic way in which many retailers are approaching the Consumer Rights Directive is likely to influence their approach to the proposed PSD2. One specific objective of this Directive is to enhance competition by regulating payment initiation services, which bypass card networks to make payments direct to merchants. This means previously unregulated players – such as online intermediary marketplaces and certain technical service providers – will be faced with a choice of partnering with a regulated financial institution or becoming directly regulated.

PSD2 will also usher in a more intense focus on payment security and force the use of strong customer authentication. For example, customers will need to use two or more independent elements of knowledge (something only the user knows), possession (something only the user possesses) and inherence (something the user is) to validate their identity. This could make chip and PIN, a mobile device and biometric data (like fingerprinting) all necessary when making a purchase.

The increasing use of alternative payment methods, such as contactless cards and e-wallets on mobile phones, also raise regulatory issues. Cards, for example are very different from electronic payments, which are in turn different from ‘add to bill’ options. This shows how important it is for retailers and brands to create robust strategies to drive customer convenience while addressing charges and the associated liability framework.

Finding a practical solution is difficult but can be beneficial too. Aside from reducing regulatory concerns, alternative security methods and payments make the customer journey smoother, improving the overall experience, increasing spend and fostering brand loyalty.

Online commerce and payments

The increasing use of intelligent data analysis techniques, alongside rapidly advancing technology, is driving change in online commerce. Used correctly, they create an opportunity for brands to build further customer loyalty and engagement. But how can brands meet the needs of the ‘I want it now’ consumer and the substantial demands of regulators?

59%Online purchases made using alternative payments will rise to 59% in 2017 from 43% in 2012.WorldPay 2014

2120

Specialist e-commerce lawyer Tom Harding and expert payments lawyer Kate Johnson explore the regulatory issues facing the retail sector.

Consumer rights, privacy, payments and security are all issues that e-commerce players are well used to dealing with. However, the double whammy of the Consumer Rights Directive, which came into force in June 2014, and the proposed Second Payment Services Directive (PSD2), which is due to be implemented in 2017, creates a whole new series of regulatory headaches for retailers. The Consumer Rights Directive enhances consumer rights and imposes more defined customer purchase journeys, as well as surcharge and hidden charges restrictions. Many retailers have already tackled these challenges, with some exceeding the requirements of the regulations. The most effective examples offer customers equal rights across online or offline purchases as part of a wider ‘omni-channel’ approach.

The real challenge is determining where today’s complex, multi-channel sales journeys fit within the more traditional models envisaged by the Directive. Only then can retailers understand how to achieve compliance.

The realistic way in which many retailers are approaching the Consumer Rights Directive is likely to influence their approach to the proposed PSD2. One specific objective of this Directive is to enhance competition by regulating payment initiation services, which bypass card networks to make payments direct to merchants. This means previously unregulated players – such as online intermediary marketplaces and certain technical service providers – will be faced with a choice of partnering with a regulated financial institution or becoming directly regulated.

PSD2 will also usher in a more intense focus on payment security and force the use of strong customer authentication. For example, customers will need to use two or more independent elements of knowledge (something only the user knows), possession (something only the user possesses) and inherence (something the user is) to validate their identity. This could make chip and PIN, a mobile device and biometric data (like fingerprinting) all necessary when making a purchase.

The increasing use of alternative payment methods, such as contactless cards and e-wallets on mobile phones, also raise regulatory issues. Cards, for example are very different from electronic payments, which are in turn different from ‘add to bill’ options. This shows how important it is for retailers and brands to create robust strategies to drive customer convenience while addressing charges and the associated liability framework.

Finding a practical solution is difficult but can be beneficial too. Aside from reducing regulatory concerns, alternative security methods and payments make the customer journey smoother, improving the overall experience, increasing spend and fostering brand loyalty.

Online commerce and payments

The increasing use of intelligent data analysis techniques, alongside rapidly advancing technology, is driving change in online commerce. Used correctly, they create an opportunity for brands to build further customer loyalty and engagement. But how can brands meet the needs of the ‘I want it now’ consumer and the substantial demands of regulators?

59%Online purchases made using alternative payments will rise to 59% in 2017 from 43% in 2012.WorldPay 2014

2120

Connected vehicle technology has radically changed transport, leasing, insurance and vehicle safety businesses, to name just a few. The insurance sector has perhaps been the most dramatically affected. In just five years, telematics data’s ability to predict risk has outstripped statistical data. Insurers have had to become service providers, communicating with their customers about telematics data and creating new segments with offers targeted to customer needs. At the same time, they’ve had to navigate new data protection regulations, gender rulings and multiple M&As in and outside the pure insurance sector.Thomas Hallauer Research & Marketing Director, PTOLEMUS Consulting Group

As one of the market’s most innovative and trusted providers of vehicle tracking and telematics solutions, we’re only too aware of how technology, environmental pressures and ‘new thinking’ are rapidly transforming the sector. Operating at the leading edge inevitably has some degree of risk attached. That’s why it’s important to have advisors that understand our business well enough to balance risk and provide commercial advice that doesn’t hinder innovation.Greville CoeManaging Director, Isotrak

The rapid rise of telematics has really kept us on our toes. Clients come to us with completely new technology and issues that have never been raised before. Often, there is no established solution. We have to combine all of our automotive industry experience, understanding of technological innovation and legal expertise to come up with practical solutions that allow our clients to take their technology to market.Simon SpoonerPartner, Osborne Clarke

Telematics is a real game changer for the automotive sector. The legal framework needs to evolve with technology, so we work closely with policy makers in Brussels and in the EU member states to ensure consumer choice and fair competition in a multibillion Euro market that is rapidly changing.Hartmut RöhlPresident of the European Association of Automotive Aftermarket Distributors (FIGIEFA)

Internet of Things and telematics

The internet is rapidly evolving from a network of ideas into a ‘network of everything’. Nowhere is this more apparent than in the field of machine- to-machine (M2M) communications, which is underpinning the development of the Internet of Things into an essential part of our everyday lives. Telematics is, in many ways, the poster child for the Internet of Things, demonstrating how M2M communications can touch every area of our lives. Here, our telematics clients, contacts and partners explain how the automotive sector is adapting to the legal challenges raised by rapid technological change.

“Clients come to us with completely new technology and issues that have never been raised before. Often, there is no established solution.”Simon Spooner, Partner, Osborne Clarke

2322

Connected vehicle technology has radically changed transport, leasing, insurance and vehicle safety businesses, to name just a few. The insurance sector has perhaps been the most dramatically affected. In just five years, telematics data’s ability to predict risk has outstripped statistical data. Insurers have had to become service providers, communicating with their customers about telematics data and creating new segments with offers targeted to customer needs. At the same time, they’ve had to navigate new data protection regulations, gender rulings and multiple M&As in and outside the pure insurance sector.Thomas Hallauer Research & Marketing Director, PTOLEMUS Consulting Group

As one of the market’s most innovative and trusted providers of vehicle tracking and telematics solutions, we’re only too aware of how technology, environmental pressures and ‘new thinking’ are rapidly transforming the sector. Operating at the leading edge inevitably has some degree of risk attached. That’s why it’s important to have advisors that understand our business well enough to balance risk and provide commercial advice that doesn’t hinder innovation.Greville CoeManaging Director, Isotrak

The rapid rise of telematics has really kept us on our toes. Clients come to us with completely new technology and issues that have never been raised before. Often, there is no established solution. We have to combine all of our automotive industry experience, understanding of technological innovation and legal expertise to come up with practical solutions that allow our clients to take their technology to market.Simon SpoonerPartner, Osborne Clarke

Telematics is a real game changer for the automotive sector. The legal framework needs to evolve with technology, so we work closely with policy makers in Brussels and in the EU member states to ensure consumer choice and fair competition in a multibillion Euro market that is rapidly changing.Hartmut RöhlPresident of the European Association of Automotive Aftermarket Distributors (FIGIEFA)

Internet of Things and telematics

The internet is rapidly evolving from a network of ideas into a ‘network of everything’. Nowhere is this more apparent than in the field of machine- to-machine (M2M) communications, which is underpinning the development of the Internet of Things into an essential part of our everyday lives. Telematics is, in many ways, the poster child for the Internet of Things, demonstrating how M2M communications can touch every area of our lives. Here, our telematics clients, contacts and partners explain how the automotive sector is adapting to the legal challenges raised by rapid technological change.

“Clients come to us with completely new technology and issues that have never been raised before. Often, there is no established solution.”Simon Spooner, Partner, Osborne Clarke

2322

“There is only one fi rm that I’ve hired fl at out and I will put them up at the top. Osborne Clarke does all of our European, Middle East and has also given some Africa advice… they are our fi rst line of contact for any issues coming up, from distribution to competition to employment.”Rafferty Jackson, Executive Vice President and General Counsel, Beats

osborneclarke.com/digital-business

Osborne Clarke is a brand under which several national fi rms operate. Full details here: osborneclarke.com/defi nitions

© Osborne Clarke 2015. Publication number 23502255

These materials are written and provided for general information purposes only. They are not intended and should not be usedas a substitute for taking legal advice. Specifi c legal advice should be taken before acting on any of the topics covered.

For more information visit osborneclarke.com/digital-business

Adrian BottInternational Head of Digital Business +44 20 7105 7458adrian.bott@osborneclarke.com

Contact us

If you’d like to find out more about what we can help your business achieve, please contact:

24

“There is only one fi rm that I’ve hired fl at out and I will put them up at the top. Osborne Clarke does all of our European, Middle East and has also given some Africa advice… they are our fi rst line of contact for any issues coming up, from distribution to competition to employment.”Rafferty Jackson, Executive Vice President and General Counsel, Beats

osborneclarke.com/digital-business

Osborne Clarke is a brand under which several national fi rms operate. Full details here: osborneclarke.com/defi nitions

© Osborne Clarke 2015. Publication number 23502255

These materials are written and provided for general information purposes only. They are not intended and should not be usedas a substitute for taking legal advice. Specifi c legal advice should be taken before acting on any of the topics covered.

For more information visit osborneclarke.com/digital-business