Legal journal: Legislative Compass - April 2024

In today's Legislative Compass, we will provide you with a summary of important received news that may apply to you:

• from 1 May 2024, the amounts of basic compensation for the use of motorised road vehicles for business trips shall be increased,
• planned amendment to the Public Procurement Act based on a government proposal, which aims to move Slovakia forward, speed up public procurements and eliminate complications,
• Electronic election register,
• Amnesty for black buildings effective from 1 April 2024,
• the amendment on social insurance, which introduces a full-fledged 13th pension as a pension benefit,
• exclusion of deceased persons from the scope of the Personal Data Protection Act,
• new general consumer protection legislation and will replace most specific consumer protection laws, bringing us closer to codification of consumer law;
• relaxation of the limit on the number of holders of an energy business authorisation for whom a qualified person can perform the function of responsible officer.

We decided to discuss in more detail the topic of the forthcoming amendment to the Act on the Ownership of Residential and Non-Residential Premises, the European Media Freedom Act and the statement on the "pay or okay" model.

VOTE AT HOUSE MEETING SOON ELECTRONICALLY

The Ministry of Finance of the Slovak Republic is preparing an amendment to the Act on the Ownership of Apartments and Non-Residential Premises, which aims to enshrine new legislation on electronic voting into the Act. In particular, it is proposed to allow owners of apartments or non-residential premises in a building to vote at the owners' meeting also by electronic means. In addition to attending the owners' meeting directly or voting in writing, owners would have a third option. The use of electronic means does not constitute a new specific type of voting. It is only an opportunity to make it easier for owners of apartments or non-residential premises in a house to exercise their property rights in other ways than personal participation. This model has proven itself especially during the Covid-19 pandemic and since it has received positive feedback, it is proposed to introduce electronic voting also for the post-pandemic period. The amendment can be commented on in the MPK until 20 May 2024.
Scheduled to take effect from 1 January 2025.

THE EUROPEAN MEDIA FREEDOM ACT ENTERS INTO FORCE

[New European regulation protecting journalists, media and press freedom] (https://eur-lex.europa.eu/legal-content/SK/TXT/?uri=CELEX:32024R1083 ) was published in the Official Journal of the EU on 17 April 2024 and entered into force 20 days later, i.e. on 7 May 2024, but will mostly apply from 8 August 2025. This is the first ever binding legal act at European Union level to deal with this issue. From the point of view of substantive regulation, this act is intended to help:

• editorial independence by requiring Member States to respect the effective editorial freedom of media service providers, while improving the protection of journalistic sources, including against the use of spy software; -* *the independent functioning of public service media, including by guaranteeing adequate, sustainable and predictable financial resources and increasing transparency in the appointment of the chair or members of public service media boards;
• transparency of media ownership by imposing disclosure requirements for targeted information (e.g. official company names, contact details, owners);
• safeguards against unauthorised removal by very large online platforms (named in the Digital Services Act) of media content which has been produced according to professional standards but which is considered incompatible with terms and conditions;
• the right to customize the media offering on devices and interfaces such as connected TVs, allowing users to change default settings to reflect their own preferences;
• ensure that Member States assess the impact of key media market concentrations on media pluralism and editorial independence through media pluralism tests;
• ensure a more transparent audience measurement methodology for media service providers and advertisers to limit the risk of overestimation or misrepresentation of audience data;
• set requirements for the allocation of state advertising to media service providers and online platforms to ensure transparency and non-discrimination.

In addition, a new independent European Media Services Council will be established to promote the effective and consistent application of the media legal framework in the EU, including by issuing opinions on the impact of media market concentrations that could affect the functioning of the internal market for media services, and supporting the Commission in the preparation of guidelines on media regulation issues. The Council will also coordinate measures on media outside the EU that pose a risk to public security and organise a structured dialogue between very large online platforms, media and civil society.

EUROPEAN DATA PROTECTION BOARD (EDPB) COMMENTS ON 'PAY OR OKAY' MODEL

On 17 April 2024, the EDPB adopted in plenary an opinion on data protection under Article 64(2) GDPR. The opinion addresses the validity of consent to the processing of personal data for behavioural advertising purposes in the context of the "pay or okay" models put in place by large online platforms.

In its opinion on "pay or okay" models, the EDPB stated that users should have a real choice without having to hand over all their data or pay. It also argues that these models mostly do not meet the requirements of valid consent and online platforms should consider providing a free alternative without behavioural advertising. The EDPB considers that providing only a paid alternative to services that involve the processing of personal data for behavioural advertising purposes should not be a standard way for controllers. When developing alternatives, large online platforms should consider providing an 'equivalent alternative' that does not entail the payment of a fee. If operators decide to charge a fee for access to an 'equivalent alternative', they should strongly consider offering an additional alternative. This free alternative should be free of behavioural advertising, e.g. in the form of advertising involving the processing of less or no personal data.

Obtaining consent does not exempt the controller from complying with all the principles listed in Article 5 of the GDPR, such as purpose limitation, data minimisation and fairness. As regards the need for free consent, the following criteria should be taken into account: conditionality, harm, power imbalance and granularity.

For example, the EDPB also points out that no fee charged can make individuals feel compelled to agree. Operators should assess on a case-by-case basis whether the fee is reasonable at all, as well as what level is appropriate in the circumstances.

Controllers should also consider imbalances in power and the negative consequences of withholding consent.