The last quarter of the year has begun, and we are kicking it off with a selection of the most important news, judgments, case law and trends in the technology sector. WHAT'S NEW, Pérez-Llorca's technology newsletter, is a joint effort of the firm's teams in Spain, Portugal, Mexico and Colombia.
EUROPEAN UNION
Public consultation on the Digital Fairness Act: In July, the European Commission opened the public consultation on the Digital Fairness Act (DFA), a regulatory proposal to strengthen consumer protection in digital environments. The future text, which is still unknown, will address dark patterns, algorithmic personalisation and unfair contracts, establishing a unified legal framework in the European digital market. If approved, which is not yet certain, technology companies will have to incorporate compliance from the design phase of digital products and services.
The obligations of the Artificial Intelligence Act (“AIA”) relating to general-purpose artificial intelligence (“AI”) models enter into force: On 2 August, the AIA obligations related to general purpose models came into force. The European Commission published guidance documents, including the AI Code of Good Practice, to facilitate business compliance. These measures particularly affect companies developing AI models using big data or refining such models.
Application of the Data Act begins: The Data Act became applicable on 12 September, marking a milestone in European regulation on access to and use of data generated by connected devices. This cross-cutting regulation impacts businesses in all sectors, requiring comprehensive strategies to protect valuable data and identify opportunities to access third-party data. Organisations must develop new business models and value-added services in this new regulatory scenario
Spain
Draft Organic Law for the protection of minors in digital environments: On 10 September, the Congress of Deputies approved the processing of the Draft Organic Law for the protection of minors in digital environments. The legislation establishes measures such as raising the minimum age for registration on social networks to 16, age verification mechanisms and new criminal offences related to AI deepfakes and grooming. This law represents a comprehensive framework to preserve the rights of minors in the digital environment and protect their personal data.
Draft Royal Decree on the Artist’s Statute: The Spanish government presented the Draft Royal Decree on the Artist’s Statute, which introduces specific limits on the use of generative AI in the creative sector. The proposed legislation expressly excludes, unless otherwise agreed, the use of generative AI for the subject matter of artistic contracts and prohibits the unauthorised use of the voice, image or creations of artists and scriptwriters. If adopted, the legislation would permit only a very limited number of uses at the production or promotional stages, provided they do not involve the undue impersonation of the artist.
Sanctioning powers for serious infringements in the use of AI systems: Since 1 August, the Spanish Agency for the Supervision of Artificial Intelligence (using the Spanish acronym, AESIA) has had sanctioning powers for serious infringements in the use of AI systems. Fines can reach up to €35 million, in line with the AIA. However, comprehensive national legal development for the effective imposition of sanctions remains pending.
Portugal
Anacom as the AI regulatory authority in Portugal: The Portuguese government designated Anacom (Autoridade Nacional de Comunicações) as the market supervisory authority and focal point of contact for the implementation of the AIA. The choice is based on Anacom’s experience as a technology regulator and its constructive role with companies and operators, having taken over responsibility for oversight of the Digital Services Act. This designation represents a key step in the implementation of the AI Act, although questions remain about Anacom’s ability to provide itself with the human and technical resources necessary to fully assume this new responsibility.
LATAM
Mexico
Reform of the Federal Economic Competition Law: In July, the Federal Economic Competition Law was reformed to establish the creation of the National Antitrust Commission (CNA) to replace COFECE. The transition will be completed when President Sheinbaum appoints and the Senate ratifies the new Plenary and Presiding Commissioner. This process is expected to be completed during the last quarter of 2025.
Reform of the Federal Law for the Protection of Industrial Property: On 15 September, an initiative to reform the Federal Law for the Protection of Industrial Property was presented to protect rightholders from infringements arising from the use of AI. The proposal aims to prevent the creation of misleading AI-generated content, the unauthorised replication of trademarks, and the misuse of trade secrets for model training purposes. This reform aims to balance technological development with the protection of industrial property rights.
Reduction of concentration reporting thresholds: The reform lowers the monetary thresholds that trigger the need for a mandatory concentration notification, meaning that a significantly greater number of transactions will require prior approval. Exceptions that allowed certain transactions to be omitted from reporting, including transactions between foreigners without assets accumulated in Mexico, were eliminated. This amendment extends the scope of transactions subject to merger control to include smaller-scale acquisitions, which now require prior authorisation.
Competence in e-commerce: The Competition Authority (COFECE) has concluded its sector inquiry into retail e-commerce, which it initiated in 2022. The inquiry identified potential barriers to entry for new competitors in these markets. Although the authority recognised behavioural barriers that could restrict sellers’ mobility between platforms, it decided not to impose corrective remedies due to a lack of consensus on the benefits for consumers and SMEs. This decision sets a precedent for a cautious approach to the regulation of digital platforms, highlighting the challenges involved in intervening in emerging technology markets.
Colombia
Amendments to the Colombian Criminal Code: Law 2502 introduces an aggravating factor to the offence of identity fraud when it is committed by means of AI, particularly through deepfakes. This amendment to Article 296 of the Criminal Code represents the first regulatory development in the country that seeks to directly regulate the effects of AI. It therefore establishes a precedent in the Andean region to recognise the implications of AI used for fraudulent purposes, which is increasingly common on social media and in financial services.
AI: In technology transactions, there is a growing trend towards incorporating AI compliance analysis and audits during the due diligence process. This approach enables the degree of regulatory compliance to be assessed and possible contingencies that could affect the transaction to be identified, especially in light of the imminent entry into force of the AIA. Typical consequences of such analyses include adjustments to the valuation of the transaction, the setting of conditions precedent or suspensive conditions, the negotiation of indemnity clauses, as well as possible changes to the timing or structure of the transaction.
On the other hand, the incorporation of AI systems in document review processes can help to optimise analysis times, while maintaining the necessary professional oversight and allowing for improved operational efficiency in almost any type of transaction.
Software: As with AI, it is becoming increasingly important to supplement the legal due diligence process with specialised technical audits that assess the target company’s technology systems, including the architecture of its platforms, the quality of the developed code, open-source software dependencies, cybersecurity aspects and the intellectual property rights chain, as well as compliance with regulatory design. This holistic approach enables the identification and status of the company’s technology assets to be verified, potential integration and usage risks to be detected, and these findings to be translated into concrete elements of the transaction.
EUROPEAN UNION
CJEU
Remuneration for the public communication of phonograms on a radio station (UPFR v DADA Music -C‑37/24-): The Court of Justice has addressed the determination of tariffs for the public communication of phonograms by radio broadcasters in a dispute between the latter and a collective management organisation over statutory minimum remuneration systems. The judgment confirms that States are not obliged to maintain fixed minimum tariffs under European law when they guarantee equitable remuneration linked to the real economic value of the use in accordance with the relevant Directives. Link here →
CJEU
Characterisation of Internet sites as audiovisual media services (Makeleio EPE -C-555/23 -, Zougla G.R. AE -C-556/23- and Ethniko Symvoulio Radiotileorasis (ESR)): The Court of Justice considered whether certain information society service providers should be classified as audiovisual media service providers. Some cases concerned newspaper websites that disseminated audiovisual content that was sanctioned for inciting violence or hatred. The judgment confirms that, when they meet the specified conditions, these sites can be considered audiovisual media services under the relevant Directive. Link here →
Spain
Publication of the source code of an application on the basis of the Transparency Law: The Supreme Court recognised the right of a foundation to access the source code of an application that automates the verification of the discounted electricity rate (bono social eléctrico). The judgment established that when the Administration uses algorithmic systems that impact social rights, a heightened requirement of transparency applies, and access to the code may be required. This doctrine allows citizens to verify that the operations implemented comply with the applicable legal framework. Link here →
PLL TechLaw judgment | Presumption of transfer of rights to software: Madrid Commercial Court No. 18, in its judgment of 29 July 2025, dismissed a claim for infringement of intellectual property rights over two computer programs. The court concluded that the claimants did not prove their standing as authors or rightholders. Furthermore, the substantial sums paid for commissioning the works justified the transfer of exclusive exploitation rights rather than a mere licence. This judgment is significant because it emphasises the importance of demonstrating the chain of rights in intellectual property litigation and recognises the presumption of transfer of exploitation rights in commissioned works when economic and contractual circumstances justify it, even in the absence of an express written agreement, as required by the Intellectual Property Law.
Infringement of the right to privacy: The Supreme Court confirmed that installing an electronic peephole with a camera that captures the communal area constitutes an unlawful intrusion into the privacy of neighbours when there is no real security issue. The judgment dismissed the appeal of a couple who were forced to remove a device which was intended for “simple convenience” in a building with no history of security incidents. The ruling reaffirms the proportionality test and the need for less intrusive alternatives such as alarms or sensors. Link here →
LATAM
Mexico
Registration of AI-generated works denied: On 2 July, the Supreme Court of Justice definitively confirmed that works generated by AI systems cannot be registered under copyright. The court established that only natural persons can be considered authors, as creative protection is a human right that requires uniquely human individuality and creativity. Technology companies must ensure meaningful human intervention in creative processes to maintain copyright protection.
Use of AI in courts: On 22 August, the Second Collegiate Court for Civil Matters of the Second Circuit recognised the viability of using AI as an auxiliary tool in judicial proceedings to calculate guarantees in constitutional protection proceedings. The court stated that AI facilitates the administration of justice, making it easier and more efficient while reducing human error and generating consistency in precedent. While this decision creates opportunities for AI-based legal solutions, it also requires rigorous explainability and traceability standards.
Colombia
Algorithmic transparency: The Constitutional Court defined the scope of the principle of algorithmic transparency in the exercise of the right of access to public information. The court ruled that the state must provide the source code of applications developed with public funds when there is no concrete evidence of harm that would justify denying access. This decision strengthens citizens’ ability to audit automated decision-making systems to ensure they operate properly and that personal data is protected.
Algorithmic transparency: The Constitutional Court annulled a section of Article 56 of Law 1450 of 2011 which permitted zero-rating plans for mobile telephony. The court found that this practice infringes the principles of net neutrality, equal access to content, and freedom of expression. According to the ruling, zero-rating has the potential to create divisions among users and generate discrimination in the secondary market for mobile applications by favouring certain content over others unfairly.
AI revolutionises the legal function: At a recent meeting organised by Forbes, legal industry experts highlighted how AI is transforming the legal function in companies. From contract management to regulatory compliance, AI is a key tool for improving the efficiency and competitiveness of law firms. Professionals from different companies agreed on the importance of integrating AI in a strategic way, ensuring an effective implementation that drives growth and differentiation in the market.
AI reinforces the key role of human talent in the public and private sectors: At the WLW forum, experts emphasised that, in the face of AI-driven transformation, the human factor remains essential in both the public and private sectors. Although AI can streamline legal, regulatory and administrative processes, it is people’s commitment and ethical vision that ensures these technologies are used responsibly and effectively. Rather than replacing professionals, AI frees up time and resources, enabling human talent to focus on strategic tasks, innovation, and decision-making. This consolidates their fundamental role in the new technological landscape.
AI tool for judicial support without decision-making content: The High Council for Administrative and Tax Courts of Portugal announced the development of an artificial intelligence tool to support judges in ancillary functions, such as case file management and document analysis. It emphasised that the application would not contain any decision-making content, and that judicial decisions would always be the exclusive responsibility of the judge. This initiative reflects the trend towards judicial digitisation with clear safeguards on preserving the human judicial function.
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