A brief overview of the ever-evolving regulatory landscape in the tech industry—including: recent tech transformation, U.S. and international regulations, tech compliance, shaping public policy for the technology industry. If you find this presentation useful, connect with me on LinkedIn: http://bit.ly/NJGTLI
I will argue, though I'm biased that Technology has the most signifant impact on business, second only to the economy
As evidence Today the 5 most valuable companies in the US are all technology companies (by market cap)– none of which existed 20 years ago
Apple, Alphabet, Microsoft, Facebook, and Amazon
And with Tech's role driving the sharing economy, there are increasingly coming under regulations already in place for those industries
union labor contractors – 1099 vs employee
taxing regs for hotels – existing regulations such as rent-stabilized or coop-nanned homes,
insurance requirements for transportation
HIPPA and ACA rules
drones and FAA regulations
self driving cars – tech companies not subject to same regs as auto companies
cypto-currency
And with Tech's role driving the sharing economy, there are increasingly coming under regulations already in place for those industries
union labor contractors – 1099 vs employee
taxing regs for hotels – existing regulations such as rent-stabilized or coop-nanned homes,
insurance requirements for transportation
HIPPA and ACA rules
drones and FAA regulations
self driving cars – tech companies not subject to same regs as auto companies
cypto-currency
And this pace of change is accelerating. - See McKinsey chart
The technology industry itself is rapidly blurring into other, traditional industries. Some of you may have may have heard me say this before, but it bears repeating.
Digital transformation has already happened:
World's largest taxi company is tech cco. that owns no taxis – Uber
Largest accommodation co. is a tech co that owns no real estate - Airbnb
World's largest media company creates no content - Facebook
Largest phone co has no telco infrastructure – Skype
World's most valuable retailer has no inventory – Alibaba
World's largest movie house has no cinemas - Netflix
World's largest software cos. write no apps – Apple and Google
Fastest growing banks have not actual money – SocietyOne
Now for today's detailed discussion.
For all the reasons just discussion – growing portion of the economy, disruptive force, tech operating in traditional industries, pervasive in our daily lives driving economic winners and loser – the tech industry has drawn the attend of governments and regulators around the world
Governments struggle to keep pace with the rate of innovation
Complex as multiple jurisdictions are involved from local to multiple globals
While technology is not classically a regulated industry such as FS or Utilities, or healthcare, we are rapidly moving in that direction
And already have it in certain subsectors such as Telecommunications.
As tech increasingly is viewed as a "utility" as access is increasingly viewed as a "must" to compete an a barrier in the economic divide this will grow
a broad range of issues and concerns from privacy and security
to unfettered and equal access
to taxation
to sovereign rights
to immigration
and environmental concerns
affecting all our TIP sectors and subsectors
And serve as a drag on the pace of growth and potentially innovation
and a sampling of recent actions reflect the breadth and significance of these concerns
the most recent is a more traditional concern, but one that is likely to increase in frequency, is antitrust. AT&T proposing to buy Time Warner in a vertical integration Raising concerns about net neutrality and pricing l everage
As lines continue to blur between technology and other industries, we will see more of this
Apple and the US gov't – privacy and national security at odds
Facebook and Germany – personal privacy highlighting the differences in attitudes among countries
Microsoft and US gov't – privacy and security and the complications od data stored outside the US
In the early days of the tech industry the approach was to ignore government – other than as a marketplace, then to respond defensively when challenges, and reluctantly and tentatively begin to engage in policy and lobbying efforts – MS set up a Washington office as a result of US antitrust case years ago
CLOs are now front and center as business advisors
And companies are incurring additional costs – in this example setting up additional data centers within countries. This favors the large, wealthier companies, as the smaller, emerging companies cannot afford to do so
Raising the potential cost of "doing nothing"- no longer an option
a broad range of issues and concerns from privacy and security
to unfettered and equal access
to taxation
to sovereign rights
to immigration
and environmental concerns
affecting all our TIP sectors and subsectors
And serve as a drag on the pace of growth and potentially innovation
Other ISO Standards (Examples):
Occupational Health and Safety
Social Responsibility
Risk Management
Speaker note – This is very consistent with what DOJ and SEC have said they expect so nothing too surprising. Will be harder for countries where ABAC compliance isn't a priority.
- provide evidence in the event of a criminal investigation that you have taken reasonable steps to prevent bribery
- Because the standard is new, it is unclear what value the certification will hold
The Act sets forth detailed definitions of property, payroll, and sales, for purposes of these thresholds. Each year, taxpayers should monitor the dollar-based thresholds, as they will be subject to annual adjustments (rounded to the nearest $1,000), based on a 5% or more change in the Consumer Price Index.
Since the thresholds apply at the entity-level, the Act will impact tax filings of not only business entities and nonresident individuals, but also owners of certain pass-through entities (including trusts) doing business in Alabama. Thus, if either the property, payroll, or sales of a pass-through entity (or trust) exceeds a threshold amount, then an owner (or beneficiary) will be subject to Alabama income tax on its share of the entity's (or trust's) Alabama income.
, and
the seller conducts one or more of the activities as stipulated in AL Code Section 40-23-68 including:
maintains, occupies or uses an office, place of distribution
qualifies to do business or registers with the state to collect tax,
employs or retains under contract any representative, agent, salesman, canvasser, solicitor or installer for the purpose of selling, delivering, or the taking of orders for the sale of tangible personal property or any taxable services,
solicits, pursuant to a contract with a broadcaster or publisher located in the state,
solicits orders for tangible property by mail,
solicits, pursuant to a contract with a cable television operator located in the state,
solicits orders for tangible property by means of telecommunication or television shopping system which is intended to be broadcast by means of broadcasting to consumers in the state.
south Dakota
The remote seller's gross revenue of sale of tangible property, any products transferred electronically, or services delivered into South Dakota exceeds $100,000
The remote seller has 200 or more separate transactions tangible property, any products transferred electronically, or services delivered into South Dakota.