What were the hottest legal topics of the past decade? What gave our clients pause for thought? We listed five things to provide plenty to talk about not just over the holidays, but far into the new decade, as well.
16.12.2019
What Were the Major Commercial Law Trends of the 2010s? Five Conversation Starters for the Holidays
1. Data Protection
Data protection regulations lay down the ground rules for the processing of personal data. The amount of data being processed has exploded, and organisations have begun leading and developing their operations with data. It has become more important than ever to ensure that processing is done legally.
The EU’s General Data Protection Regulation entered into force in May 2018. This new legislation has forced companies to learn a risk-based approach to the planning and implementation of personal data processing. High-profile case law has emphasised transparency, the providing of information and the compliance of processing with the law. The data protection revolution is ongoing and can be expected to take on new forms in the future.
2. Digitalisation and AI
Digitalisation and technological innovations have begun shaping businesses. Machine learning and blockchain have given rise new opportunities in a number of fields, including the legal services industry. Examples include document automation, online dispute resolution and AI document analysis. The use of AI also comes with risks, however: if the machine learning process is flawed, the decisions made by AI could be discriminatory. AI still needs a person (perhaps even a lawyer) to back it up.
3. Sustainability
Sustainability has become a driver of successful business. In addition to profit, an increasing number of companies are also seeking to minimise environmental impacts, take good care of their personnel and handle corporate governance well. Sustainable practices exceed the minimum level required by law. Sustainability requirements are being extended down the supply chain, and interest group impacts are being identified. To lead with data, you have to use the data responsibly.
A significant number of companies are already seeking to achieve social impact through their operations—a fact that cannot help but be reflected in the legal services industry. This development can be seen in sustainable investment assignments, new forms of financing, compliance work, public-sector procurement and numerous energy-industry assignments.
4. Brexit
The UK’s departure from the EU has been a mainstay in news headlines since 2017 when the country formally announced its withdrawal. Given the fresh election results, Brexit looks set to take place on 31 January 2020, but the shape of the UK’s and EU’s relationship following the transition period remains unclear.
The schedule is extremely tight, and if no agreement is reached, the UK will become a third country to the EU at the end of next year. In the legal field, a hard Brexit would particularly impact trader’s permits, the trade of goods and IPR issues. In many industries, companies are hoping for the best, but preparing for the worst. There is plenty here to keep lawyers busy for years to come.
5. Climate Change
Everyone has heard of Swedish climate activist Greta Thunberg, who despite her young age has taken a strong stance on climate policy. Climate change has dominated public debate and impacted personal choices. The Paris climate accord will be applied starting in 2020, and the EU has just approved a green deal. The battle to stave off climate change continues, and is showing up in the legal field, for example, in the form of emissions-free energy projects.
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Latest references
WithSecure – Sale of open source data collection product and business
We advised WithSecure Oyj in the sale of its open source data collection product and business to Patria Oyj. The divested business combining software and services falls outside WithSecure’s current strategy. Through the sale, WithSecure sharpens its focus on the Elements portfolio. WithSecure is a global cyber security company (listed on NASDAQ OMX Helsinki) with more than 35 years of industry experience. WithSecure offers partners flexible commercial models, ensuring mutual success across the dynamic cyber security landscape. Patria is an international company in the defence and security industry offering defence, security and aviation life cycle support services and technology solutions. As a result of the transaction, Patria will open a new office in Oulu and 10 WithSecure experts currently working in the business area will join Patria.
Case published 30.9.2024
A. Ahlström – ESG advisory and corporate sustainability due diligence process planning
We advised A. Ahlström in establishing a corporate sustainability due diligence process plan which incorporates best practices and tailored solutions based on our expertise within relevant business sectors. Our comprehensive ESG offering also included tailored training for members of the investment team and management team and the board of directors of several portfolio companies. ‘The ESG team at Castrén & Snellman provided us with legal and practical advice around the ESG regulatory tsunami that we need to incorporate in our ESG work,’ comments Camilla Sågbom, Director, Sustainability and Communications, at A. Ahlström Oy. A. Ahlström is a family-owned industrial company, developing leading global specialist positions in Forest & Fiber and Environmental technology sectors.
Case published 5.9.2024
Vapaus Bikes Finland – Series A funding round
We represented Vapaus Bikes Finland Oy, a company offering employee benefit bikes, in its international EUR 10 million Series A funding round. The investors behind the funding are private equity investors Shift4Good and Superhero Capital Ltd as well as Tesi together with the European Guarantee Fund of the European Investment Bank. The equity-based funding will support the company’s international expansion, software development, platform automation, and the growth of its concept for the second-hand market of bikes. Vapaus Bikes Finland is at the forefront of sustainable mobility services and has been a pioneer in the Employee Benefit Bikes sector since late 2020. It has been ranked among Finland’s fastest growing companies. Shift4Good is an impact venture capital fund focused on the decarbonisation of the transportation sector. Tesi (officially Finnish Industry Investment Ltd) is a state-owned, market-driven investment company that invests in venture capital and private equity funds and directly in Finnish startups and growth companies.
Case published 21.8.2024
City of Rovaniemi – Former employees ordered to pay damages in an investment decision matter
We successfully acted for the City of Rovaniemi in a matter concerning offence in public office and damages claims in relation to a significant investment decision made by the city. The defendants were the city’s former municipal corporate officer, who was in an employment relationship, and a city treasurer, who was in a public-service employment relationship and acted as the supervisor of the municipal corporate officer. The criminal matter related to the City Board’s decision to invest EUR 2 million of the city’s funds in bonds offered by a newly established investment company in accordance with a decision prepared by the defendants. A significant part of the company’s operations involved quick loan business. The main legal question in the matter was whether the investment of public funds constitutes an exercise of public authority and whether regulation on offences in public office therefore becomes applicable even to a person in an employment relationship. The municipal corporate officer in an employment relationship was charged with aggravated abuse of public office based on her negligence in the preparation and presentation of the investment decision as well as based on a conflict of interest due to the fact that she had invested her own money in a company that received funding from the investment target presented to the City Board. The charges of an offence in public office against the city treasurer concerned his position as the supervisor and reporter of the city’s investment activities. He was also involved in the preparation and presentation of the City Board’s decision. The processing of the matter started in the District Court of Lapland in June 2022. In its judgment given in August 2022, the District Court stated, based among other things on our argumentation, that the investment of public funds constitutes an exercise of public authority and that regulation on offences in public office can therefore be applied to the municipal corporate officer. The District Court deemed that the conduct of the former municipal corporate officer fulfils the characteristics of abuse of public office and that the conduct of the former city treasurer fulfils the characteristics of violation of official duty with respect to the preparation of the investment decision, but the right to bring charges had become time-barred. Punishments could therefore not be imposed on the defendants, but the defendants were ordered to jointly and severally pay the city approximately EUR 114,000 in damages plus interest for late payment. The city treasurer’s share of the amount was 10%. The prosecutor accepted the judgment but the other parties appealed it to the Court of Appeal. Acting for the city, we pursued claims for both punishment and damages in the Court of Appeal. The Rovaniemi Court of Appeal processed the matter in November and December 2023. In its judgment given in June 2024, the Court of Appeal upheld the District Court’s judgment with respect to the abuse of public office and violation of official duty. The Court of Appeal deemed that the municipal corporate officer had failed in her duty to declare the conflict of interest. In addition, she had failed in her duty to ensure that the prepared decision was in compliance with the city’s investment guidelines and that it had been properly put out to tender. The Court of Appeal also found that the text of the investment proposal was insufficient and misleading and that the municipal corporate officer’s conduct was intentional. As regards the city treasurer, the Court of Appeal held that he had failed in his duty to ensure that the investment proposal to the City Board complied with the investment guidelines, that the presentation was not misleading and that risks were taken into account as required by the investment guidelines. With the judgement, the Court of Appeal took a clear position that abuse in public offices and when exercising public authority is not acceptable. The judgment is also significant as it declares that investing public funds constitutes an exercise of public authority and that the liability for acts in office therefore becomes applicable even to persons in employment relationships. In addition, a key question for the Court of Appeal to assess was defining the amount of economic damage in a matter related to investment activities. The Court of Appeal held based on our arguments that the conduct of the municipal corporate officer and the city treasurer had caused damage to the city. The Court of Appeal increased the amount of damages to EUR 210,000 with the city treasurer’s share limited to 10%. The amount was increased because the Court of Appeal deemed that the city had suffered damage not only in terms of the loss of capital but also in terms of the loss of estimated return on investment. The judgement is not final.
Case published 21.8.2024