On January 15, 2025, the European Commission (the “EC”) published a recommendation (the “Recommendation”)[1] addressed to all EU Member States urging them to review “outbound investments” in certain critical technologies sectors, notably semiconductors, artificial intelligence (“AI”), and quantum technologies.
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An Active Year in Enforcement, with Changes to Come
The following is part of our annual publication Selected Issues for Boards of Directors in 2025. Explore all topics or download the PDF.
The Securities and Exchange Commission (SEC) and Department of Justice (DOJ) both had active enforcement years in 2024. The SEC’s aggressive focus on crypto enforcement continued, resulting in the filing and continued
Selected Issues for Boards of Directors in 2025
2025 promises to be another turbulent year for boards of directors. On the heels of a historically unprecedented election, companies are still ramping up compliance with the ambitious agenda of the outgoing administration while simultaneously bracing for the changes promised by the next one. Against that backdrop, colleagues from across Cleary’s offices have zeroed-in on
Effective Board Oversight as AI Evolves
The following is part of our annual publication Selected Issues for Boards of Directors in 2025. Explore all topics or download the PDF.
Deployment of generative AI expanded rapidly across many industries in 2024, leading to broadly increased productivity, return on investment and other benefits. At the same time, AI was also a focus for
Commerce Issues Final ICTS Rule; Takes Steps to Implement the Program
On December 5, 2024, the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) issued a final rule (the “Final Rule”) implementing the procedures BIS will follow when reviewing information and communications technology (“ICTS”) transactions that may pose a risk to U.S. national security pursuant to Executive Order (E.O.) 13873.[1]
You’re Invited: U.S. Outbound Investment Security Program Webinar on January 7, 2025
The Treasury Department has released its “Final Rule” which will impose on U.S. persons notification requirements and restrictions for transactions involving entities engaged in activities relating to semiconductors and microelectronics, quantum information technologies, and artificial intelligence systems in “countries of concern.” The rule will go into effect on January 2, 2025.
FCO Finds That Microsoft’s Hiring of Key Inflection Employees and Licensing of Inflection Technology Constitutes a Reportable Concentration, but Declines Jurisdiction Due to Lack of Sufficient Local Nexus
On November 29, 2024, the German Federal Cartel Office (“FCO”) concluded that Microsoft’s hiring of nearly all of Inflection AI, Inc.’s (“Inflection”) employees together with agreements on financing and the use of Inflection’s intellectual property amounted to a “concentration” under German merger control law. However, due to the lack of “substantial domestic operations” at the time of
You’re Invited: U.S. Outbound Investment Security Program Webinar on December 16, 2024
The Treasury Department has released its “Final Rule” which will impose on U.S. persons notification requirements and restrictions for transactions involving entities engaged in activities relating to semiconductors and microelectronics, quantum information technologies, and artificial intelligence systems in “countries of concern.” The rule will go into effect on January 2, 2025.
SEC FY 2024 Enforcement Results: Record Dollars But Many Fewer Cases
On November 22, the Securities and Exchange Commission announced its enforcement results for the 2024 fiscal year with a record $8.2 billion in financial remedies.[1] At the same time, a few cases and sweeps comprised the vast bulk of that amount, and the number of cases brought dropped by 26%. In a press
EU Evaluates Standalone AI Liability Directive
For some time, the EU has been contemplating the introduction of a new Directive to make it easier for consumers to bring claims for a range of alleged harms caused by AI systems, commonly referred to as the AI Liability Directive (the “AILD”).