the data economy - f.datasrvr.com · 1105 - 1130 big data and antitrust: competition law issues in...

The Data Economy Wednesday 8 May 2019

Agenda 0900 - 0915 Welcome and introduction

0915 - 0940 New infrastructures in the data economy: Impact of Greater Bay Area

initiative, smart cities, autonomous mobility and more

0940 - 1005 AI & Blockchain: New Technologies benefiting from and enabling the data

economy

1005 - 1030 Impact of data privacy: Cybersecurity/ data localisation/ data surveillance/

data ethics

1030 – 1040 Coffee break

1040 - 1105 Doing deals in the data economy: The role of data in tech transactions and

the impact of data transfer on the restructuring of groups

1105 - 1130 Big data and antitrust: Competition law issues in the data economy

1130 - 1155 Future of work in the data economy: Employment issues in the data age

1155 - 1205 Coffee break

1205 - 1230 Open data and its impact

1230 - 1300 Digital taxation

Lunch Keynote with Rob Koepp, Director of The Economist Corporate Network in

Hong Kong

Welcome and Introduction

Raffaele Giarda Global Chair, TMT Group Rome

Paolo Sbuttoni Partner Hong Kong

New infrastructures in the data economy: Impact of Greater Bay Area initiative, smart cities, autonomous mobility and more

Raffaele Giarda Global Chair, TMT Group Rome

Jennifer Trock Partner Washington DC

Rico Chan Partner Hong Kong

Liability and

Insurance

Where are we? Volume deployment at least

10 years away

ADS equipped vehicles

developed over the next 2

years

Testing takes the form of

on-road testing and

simulation miles

Civil negligence

Criminal liability

Contractual liability

Insurance

Regulatory

Trends M2M Communications

IoT applied to cars

Ethics based regulation

Harmonizing solutions

Regulatory

trends to watch Balance of top-down and

industry-led regulation

Adaptation of road laws

Connectivity standards

Blockchain: New technologies benefiting from and enabling the data economy

Sue McLean Partner London

Gavin Raftery Partner Tokyo

Dominic Edmondson Associate Hong Kong

©2019 Baker McKenzie

Models

7

A centralised system

Model 1

Current

system

An open network that anybody can

access. The digital ledger of transactions

is shared, transparent and run by all

participants

Model 2

Public blockchain

(permissionless)

Model 3

Private blockchain

(permissioned)

The preferred option of most regulated

entities. It is a private system which

controls access to certain invited

participants.

Impact of data privacy: Cybersecurity/ data localisation/ data surveillance/ data ethics

Jay Ruan Partner Shanghai

Paolo Sbuttoni Partner Hong Kong

Michael Egan Partner Chicago

Anne Petterd Partner Singapore

Francesca Gaudino Partner Milan

Impact of

new legislation

Cybersecurity

Data Localization

Data Surveillance

Data Ethics

Interplay between

privacy consumer

and antitrust law

Commercial

aspects

China

perspectives

Impact

on Csuite

Data

ethics

Cybersecurity

+ vigilance

Impact of Data Privacy

Doing deals in the data economy: The role of data in tech transactions and the impact of data transfer on the restructuring of

groups

Kirsty Wilson Partner London

Rob Wright Partner Hong Kong

Darcy Down Partner Chicago

Tracy Wut Partner Hong Kong

Delivering a successful integration

Project Team

Cultural impact Clarity

around

integration

objectives

Clear

direction

Implement all

encompassing

communication

strategy

Compliance

and Code of

Conduct

IT systems

Incentives and

harmonisation of

terms and

conditions Resources

and cost

Align with

integration

timeline

Conflicts with

business

priorities

Financial

Reporting

Employees

and unions Between

work-

streams

Market

profile

Senior

champion

Balanced

integration

team

Align with

acquisition

objectives Don’t over

estimate

synergies

Minimise

opportunity for

competitors

Prioritise

objectives

Retention of

talent and

institutional

knowledge

Fiscal

efficiencies

Achievable

deadlines

Resources

not just a

30 day

plan

Strong and

relevant

project

management

Minimise

distraction to

the day to

day business

Top down

Clear,

frequent and

consistent

Successful

Integration

Big data and antitrust: Competition law issues in the data economy

Sam Mobley Partner London

Carolina Pardo Partner Bogota

Stephen Crosswell Partner Hong Kong

Antitrust Plus

Exploring platform dominance and data

advantage/power

Interest in mergers of datasets and the hunt for

killer acquisitions

Scrutiny of e-commerce/online when reviewing distribution

practices

Appetite to assess new ways of interacting

with competitors: AI and online collusion

The Global Antitrust Spotlight

Focus on adapting to

tackle the new digital reality: data, tech and

platforms


Agencies grappling with digital: Americas, Asia Pacific and Europe


Regulation and Antitrust reform

15

Reversing the

burden of proof –

e.g. for 'defensive'

acquisitions of

start-ups

Enhanced data

access to allow

switching and

interoperability to

open up secondary

markets

Less emphasis

on traditional

market definition

analysis

- EU Reg on platform

fairness (P2B)

- UK proposal for Code of

Conduct for companies with

Strategic Market Status

REGULATION / ANTITRUST REFORM

Regulation

/ Antitrust

reform? Exclusionary Behaviour

Anticompetitive mergers

Collusion risks

UNDER DISCUSSION BY

REGULATORS CLOSER SCRUTINY IS

ON THE CARDS…

Data-driven deals:

- Consider 4Vs for measuring 'data advantage’

- Internal documents may tell the story…

Data sharing / pooling :

- Exchanging competitively sensitive info

- Freezing out rivals

Platforms and competition ‘for the market’:

Multi-homing, switching, complementary

services – all under protection

Compliance and advocacy:

Many regulatory and antitrust options being

considered

Future of work in the data economy: Employment issues in the data age

Fermin Guardiola Partner Madrid

Meredith Kaufman Partner New York

Rowan McKenzie Partner Hong Kong


Future of work in the data economy

17

Open data and its impact

Manuel Lorenz Partner Frankfurt

Karen Man Partner Hong Kong

Anne-Marie Allgrove Partner Sydney

Adrian Lawrence Partner Sydney


Open Data

19

Account + Transaction Data

Access Seeker Key Issues

Accreditation process

Reciprocity

Complexity of rules

Ease of access to data

Key Issues

Who is covered?

What data is covered?

Liability

Cost of implementation

Data Holder

Key Issues

Consent + Knowledge process

Control of “own” data

Access to services and choice

Customer

API Access to data Accreditation Body

Regulator(s)

Consent

Services

Consent + Access Request

Primary Aims Facilitate Innovation and Competition

Promote Customer Choice

Maintain Privacy and Security

Digital taxation

Kate Alexander Partner London

Dominika Korytek Partner San Francisco

Carrie Lui Associate Hong Kong


The long tail of BEPS Action 1

21

Jun

2016 2017

Apr

2018

Oct

2018

Jan

2019

Mar

2019

Jun

2019 2020

Oct

2015 2013

OECD Task

Force on the

Digital Economy

(Task Force)

formed

Inclusive

Framework

formed

Interim

report

released

OECD Policy

Paper released

and update

from Task

Force

Osaka

G20

Meeting

BEPS Action 1

final report

released

Task Force

re-formed

UK DST

announced

Update on

progress by

Task Force

OECD

Consensus

solution

expected


OECD Consultation – current proposals

22

Pillar I Proposals

User Participation

• Nexus based on the existence of active user engagement

Marketing Intangibles

• Allocation of some return to the market state (above and beyond the ALP result)

• Multiple variations and levers

Significant Economic Presence

• Nexus based on "a purposeful and sustained interaction with the jurisdiction via digital technology and other automated means."

Pillar II Proposals

Income Inclusion Rule

• Tax on income of foreign branches or controlled entities if subject to a low ETR

• Styled as a minimum tax; draws on aspects of GILTI

Tax on Base Eroding Payments

• Undertaxed Payments Rule denies deduction for related party payments not subject to a minimum ETR

• Subject to Tax Rule denies tax treaty benefits for undertaxed payments

The new politics: a path to

consensus?


Different approach across the world

23

United States

Base erosion and anti-

abuse tax (“BEAT”)—

minimum tax of 5% for

2018, 10% for 2019-24,

and 12.5% for 2025 and

after

United Kingdom

DST potentially from April

2020

France

Potential tax on

highly-digitalised

enterprises from

January 2019

Spain

Temporary tax

on digital

company

revenue

considered for

2019 Italy

Tax on digital

services expected

to enter into force

in 2019

India

From 1 June 2016, 6% "equalization levy" imposed on payments to non-

residents for digital advertising services

Taiwan

30% "deemed profit“

from digital supplies for

an effective rate of 3%

or 6% effective from

2017

Malaysia

Service tax will apply to

Business-to-Business imported

taxable services via a reverse

charge mechanism from 1

January 2019.

Service tax will apply to

Business-to-Consumer digital

services provided by foreign

service provider by requiring the

foreign service provider to

register and collect service tax.

This will take effect from 1

January 2020

Indonesia

Proposals to tax foreign

e-commerce businesses are being

considered, including requiring a local

entity to be incorporated and introducing

a VAT on all e-commerce transactions

Singapore

GST will apply on

imported services

from January 2020

Australia

Senate has expressed not to support a

3% digital focused levy


Comparison of proposed unilateral measures

EQ. LEVY

Withholding

taxes

TAIWAN

ISRAELI WEB PE INDIAN SEP

AUS MAAL /

UK DPT

Alternative

applications of the

PE threshold

US GILTI/BEAT

Specific regimes targeting

large MNEs

UK DST

EU DST / FRENCH THDE /

ITALIAN DST

Turnover taxes

Keynote from Rob Koepp, Director of The Economist Corporate Network in Hong Kong


Comparison of proposed unilateral measures

The Data Economy Wednesday 8 May 2019

the data economy - f.datasrvr.com · 1105 - 1130 big data and antitrust: competition law issues in...

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