Sunday Special | Source of Global Updates on Legal and Compliance Developments

Welcome to the latest edition of Legal and Compliance News, your source of updates on the legal and compliance developments around the world. In this issue, we cover:

- Argentina's new regulation for mobile users' data and identity

- EU's major reform of the General Product Safety Directive

- Japan's new export control on semiconductor equipment

- China's challenges with post-importation transfer pricing adjustments

- Global Legal ConfEx in New Delhi, India

- UK's update on Data Protection Act 2018 after Brexit

- US Supreme Court Justice Clarence Thomas' corruption scandal

## Argentina: New regulation for mobile users' data and identity

With Resolution No. 263/2023, published on 17 March in the Official Gazette, the National Communications Entity (Ente Nacional de Comunicaciones (ENACOM)) approved a new Regulation for the Collection of Personal Data and Identity Validation of Users of Mobile Services that Hold a Mobile Number. The regulation aims to prevent identity theft, fraud and other crimes related to mobile communications. It requires mobile service providers to collect and verify the personal data and identity of their users, as well as to keep a record of such information. The regulation also establishes sanctions for non-compliance, ranging from fines to suspension or revocation of licenses.

## EU: Major reform of the General Product Safety Directive

On 30 March 2023, Members of the European Parliament endorsed proposed reforms to the General Product Safety Directive (GPSD) in the form of a Regulation, intended to safeguard consumers. This new Regulation looks set to be one of the most significant updates to the EU’s product regulatory landscape in modern history – making substantial amendments to the GPSD, which has been in force for more than two decades. The main changes include:

- Expanding the scope of the Regulation to cover all products sold in the EU, including online and second-hand products

- Introducing new obligations for online marketplaces and platforms to ensure product safety and traceability

- Strengthening market surveillance and enforcement powers of national authorities

- Establishing a central database for product recalls and alerts

- Enhancing consumer information and awareness on product safety and risks

## Japan: New export control on semiconductor equipment

On 31 March 2023, the Japanese Ministry of Economy, Trade and Industry initiated a public comment procedure for the Draft Amendment to Ministerial Ordinance and the Draft Amendment to Circular that is intended to impose new export control requirements on certain sensitive semiconductor manufacturing equipment from Japan. The public comment period is from 31 March 2023 to 29 April 2023. Anyone can submit a comment through either (i) the Japanese government’s website, (ii) email, or (iii) mail. The new export control aims to prevent the proliferation of weapons of mass destruction and their delivery systems, as well as to protect Japan's national security interests. It requires exporters of certain semiconductor equipment to obtain prior approval from the government before exporting them to any destination, except for those countries that have concluded an agreement with Japan on mutual recognition of export control systems.

## China: Challenges with post-importation transfer pricing adjustments

Post-importation transfer pricing adjustments have always presented great challenge for multinational companies doing business in China due to the lack of formal nationwide mechanism which simultaneously addresses the tax, customs and foreign exchange administration requirements, in order to allow customs valuation adjustment to be made in response to a post-importation TP adjustment. While a TP and customs aligned approach which was introduced in a pilot program in Shenzhen in 2022 allows retroactive TP adjustment to be made with respect to imported goods, the application of the pilot program is currently limited to companies registered in Shenzhen which have in place advanced pricing arrangements with the China tax authority. Therefore, most companies still face uncertainties and risks when making post-importation TP adjustments in China.

## Global Legal ConfEx in New Delhi, India

The Global Legal ConfEx is a highly anticipated event scheduled to take place in New Delhi, India, on April 19, 2023. The event will gather a vast array of legal professionals, including in-house counsel, general counsel, heads of litigation and e-discovery, contracts managers, and data privacy heads from around the country. The event will feature keynote speeches, panel discussions, case studies, breakout sessions and networking opportunities on various topics related to legal technology, innovation, compliance and risk management. Some of the highlights of the event include:

- A keynote speech by Justice Dipak Misra, former Chief Justice of India

- A panel discussion on "The Future of Legal Services Delivery: AI vs Human Intelligence"

- A case study on "How to Implement a Successful E-Discovery Strategy"

- A breakout session on "How to Manage Data Privacy and Cybersecurity Risks in a Post-COVID World"

- A networking session with legal service providers and vendors

The event is expected to attract over 500 attendees and 50 speakers from various sectors and industries. To register for the event, please visit the official website: https://www.events4sure.com/glc2023delhi

## UK: Update on Data Protection Act 2018 after Brexit

The UK has updated its Data Protection Act 2018 (Transitional Provision) Regulations 2023 to reflect the changes brought by Brexit. The regulations, which came into force on 1 January 2023, amend the Data Protection Act 2018 to ensure that it continues to operate effectively after the end of the transition period. The main changes include:

- Replacing references to EU law and institutions with UK law and institutions

- Preserving the effect of existing EU adequacy decisions and standard contractual clauses for data transfers from the UK to third countries

- Extending the extraterritorial scope of the UK data protection regime to cover controllers and processors outside the UK that offer goods or services to individuals in the UK or monitor their behaviour

- Establishing a new mechanism for international data transfers from the UK to third countries that do not have an adequacy decision from the UK

- Creating a new role of "UK representative" for controllers and processors outside the UK that are subject to the UK data protection regime

The regulations also provide for a six-month "bridging period" during which data transfers from the EU to the UK can continue without additional safeguards, subject to certain conditions. This period will end on 30 June 2023 or earlier if the EU grants an adequacy decision to the UK.

## US: Supreme Court Justice Clarence Thomas' corruption scandal

US Supreme Court Justice Clarence Thomas has been accused of corruption for his ties to a conservative think tank that received donations from Google and Facebook. According to a report by The Guardian, Thomas failed to disclose his connections to the Texas Public Policy Foundation (TPPF), which filed briefs in support of Google and Facebook in several cases before the Supreme Court. The report also revealed that Thomas' wife, Virginia Thomas, was paid $680,000 by TPPF between 2017 and 2021 for her work as a senior fellow. Moreover, Thomas attended several events hosted by TPPF, where he met with executives and lobbyists from Google and Facebook.

The allegations raise serious questions about Thomas' impartiality and ethics, as well as his compliance with federal law and judicial codes of conduct. Under federal law, judges are required to recuse themselves from cases in which they have a personal or financial interest or a close relationship with a party or an attorney. Under judicial codes of conduct, judges are also expected to avoid any appearance of impropriety or bias that might undermine public confidence in the judiciary.

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