The information and technology sector has grown exponentially in Kosovo in the past five years, mainly focusing on the provision of services to international markets. This growth has happened mainly because of two reasons: first, the labor force is cheaper compared to the European market and, second, around 70% of the population is under the age of 35 and has advanced digital skills. The mix of these two has ensured access to international markets and the provision of quality deliverables.

According to publicly available research reports, Poland holds the seventh place in terms of the number of experts working on artificial intelligence (AI) projects in the European Union and even takes the lead in CEE. On the other hand, the level of adoption of AI-based solutions by Polish businesses is relatively disproportionate. The estimations made by the government visualize the potential impact of AI on the Polish economy. According to these calculations, the implementation of AI solutions in the Polish economy could contribute to increasing the GDP growth rate by 2.65% annually.

Following Russia’s war in Ukraine, Latvia has adopted preventive legislation in the name of its national security and interests. In particular, in May and September 2022, the Latvian Parliament adopted amendments to the law aimed at strengthening its information space. Thus, it is no longer allowed to retransmit programs whose jurisdiction undermines or threatens the territorial integrity, sovereignty, or national independence of another country.

All evidence shows that the legal rules regarding the marketing activity which is carried out by influencers will increasingly be the subject of legal analysis in the coming years. Influencer marketing has grown into a global industry showing significant growth year after year. In comparison, according to the Influencer Marketing Hub, the value of the market was estimated globally only at USD 1.7 billion in 2016 while, by 2022, this figure reached USD 16.4 billion.

At the end of September 2022, the European Commission (EC) published the long-expected proposals for legal regulation on civil liability for damage caused with the involvement of artificial intelligence (AI Liability) and liability for damage caused by a defective product (Product Liability). Whereas a proposal on AI Liability already existed (Civil liability regime for AI, published by the European Parliament in 2020), this is the first draft of an updated Product Liability.

When establishing a company in Montenegro, the new legal requirement which refers to the registration of Ultimate Beneficial Owners (UBO) should be considered. The Revenue and Customs Administration of Montenegro established the UBO Register within the Central Registry of Business Entities, in accordance with the provisions of the Law on Prevention of Money Laundering and Terrorist Financing in 2021. 

Since January 1, 2022, the Europe Now program has been in place in Montenegro, setting strategic goals for the country’s economic policy. Ten months into its tenure BDK Advokati Partner Luka Popovic and Harrisons Head of Montenegro Milan Keker look at what has been accomplished so far.

Serbian law firms seem to have carved out a considerable share of the Montenegrin legal market. CEE Legal Matters looks at the interplay of these two formerly linked legal markets and explores in what respects they are complementary, where they clash, and how this reflects on the work of lawyers.

At the end of 2020, there were 26 banks operating independently from other banks in Serbia. At the end of 2021, there were 23 such banks.  A few merger processes are still ongoing and will lead to that number shrinking to just 19 before the end of 2022. 

According to the United Nations eGovernment Development Survey 2022, Serbia’s eGovernment Development Index was evaluated as “very high,” moving forward 18 places. Following the Strategy for the Development of Artificial Intelligence, Serbia set the use of AI in the healthcare sector as a priority and started supporting projects for cooperation between public bodies and commerce to share and use data. Digitalization prevents corruption but, on the other hand, cannot meet the expectations of citizens if data protection principles are not implemented in real time.

The telecommunication industry in Serbia and the region is going through transformative changes at the core of its business. The market has seen significant consolidation and competition for consumers has become tough. Considerable investment has ensued in the sector, introducing significant changes in both services and delivery. These trends have sparked a remarkable focus shift from traditional land and mobile telephony services to information technologies and media distribution. Consumer needs and aspirations, fueled by the convergence of technologies, have set the bar high, and telecommunication companies have been able to adapt quickly.

The Serbian Competition Authority (SCA) has been relatively busy lately, and the outcome is an abundance of soft law on the one hand and inconsistent practice in actual casefiles on the other.

M&A activity in Serbia finally showed some positive trends in 2022, despite high inflation and supply chain challenges. During the first three quarters of 2022, the Serbian M&A market has performed well, given the current economic environment, and was primarily defined by deals in the energy and real estate sectors, the IT industry, and further consolidation of the banking sector. 

Although there are several incentives for renewable energy projects supported by the state, there also seem to be several factors that could impede Serbia’s potential for renewables and deter further investments in the sector. Kinstellar Belgrade Managing Partner Branislav Maric, JPM Jankovic Popovic Mitic Senior Partner Jelena Gazivoda, and Gecic Law Partner Ognjen Colic weigh which will carry a stronger impact.

Global economic movements have led the real estate and construction sectors across CEE to face several issues: supply chain problems, rising construction material prices, and labor shortages, to name but a few, have made it difficult for real estate and construction projects to be completed with the same efficiency as before. Bojovic Draskovic Popovic & Partners Partner Marija Bojovic, SOG Law Firm Partner Milos Gledovic, and Andrejic & Partners Partner Aleksandar Andrejic look at the extent to which these issues are reflected in the Serbian real estate market. 

The technology start-up sector in Serbia has, for a while now, been quite rewarding and attractive for investors from all walks of business. Looking at the past few years, the Balkan country has seen investments ranging from early-stage and entry-level all the way to complete buyouts, to the tune of several hundred million euros. With all this funding flowing into the country, Bojanovic & Partners Managing Partner Vladimir Bojanovic and Zivkovic Samardzic Partner Igor Zivkovski talk about where does it go afterward, and what kind of effects is it producing?

There is a growing concern, across CEE, about a potential wave of insolvency and restructuring proceedings. Given the economic aftermath of COVID-19, coupled with the ramifications of rising inflation and interest rates, energy crisis concerns, and the war in Ukraine – the road ahead seems bumpy at best.

Regional networks are a big deal in CEE of late, and one of the fastest growing alliances is Alliott Global Alliance. We sat down with AGA CEO Giles Brake to learn about the alliance’s history, strategy, and plans in CEE. We also reached out to AGA law firms across the region to find out more about what drew them in, what benefits they’ve been reaping, and their role as members of a global network.