As of Feb. 2, the first few requirements of the E.U. AI Act are now legally binding, and businesses operating in the region that do not abide by them are at risk of a fine. The next milestone for the AI Act will come at the end of April, when the European Commission will likely publish the final Code of Practice for General Purpose AI Models, according to Rulf. The code will become effective in August, as will the powers of member state supervisory authorities for enforcing the Act.
Source: EU AI Act: First Requirements Become Legally Binding
The legal team for the MLC has stated that it is ‘evaluating all options’ including a potential appeal of Spotify’s bundling court victory. Spotify’s bundling of audiobooks into its Premium Individual, Duo, and Family subscription plans are at the heart of the issue. Applying the rate formula applicable to bundled subscription offerings resulted in a reduction of the service provider revenue that Spotify reports, resulting in an underpayment of royalties.
In her decision on Wednesday, Judge Analisa Torres said that federal royalty rate rules clearly allowed Spotify to legally claim the lower rate, rejecting MLC’s argument that the company was not actually offering a “bundle” of services. “Audiobook streaming is a product or service that is distinct from music streaming and has more than token value,” the judge wrote, alluding to the specific wording of the federal rule. “Premium is, therefore, properly categorized as a Bundle.”
