Instructional goals
The course will provide students with a sound understanding of the most
fundamental business issues concerning the intersection (sometimes
emerging as a clash) between the legal institutes and the new
technologies, especially the Artificial Intelligence ones. In this perspective the course seeks to assess the dynamics and the
business implications stemming from the current digital transformation,
scrutinizing the legal aspects that firms and users have to deal with in the rapidly
changing economic scenario. Accordingly, the different modules will
analyse the core aspects of the business and digital and AI law, also through a
critical assessment of the main practical cases as to enhance the
students’ critical thinking and to underline that in an interconnected
world, technology law issues are global in scope. The main areas of
interest are: contract models and the role of new technologies (Internet,
multi-sided platforms, apps); Consumer protection in the digital age;
Competition law and policy, with specific attention to the competition
challenges posed by the ‘Big Five’ tech companies (Google, Microsoft,
Apple, Facebook, Amazon); Different forms of online advertising
(including search engine marketing, email marketing and social media
marketing) and their regulation in the different jurisdictions; The role of
IPRs in the digital environments; BIG DATA, artificial intelligence and legal
challenges (including the GDPR Regulation); The EU regulations: AI Act, Digital Markets Act, GDPR, Digital Services Act, Data Act, Data Governance Act.
Prerequisites
Student are required to have a background of the general theory of law,
with specific enhpasis on the problems of today legal rules to regulate
technological phenomena. Advanced knowledge of AI and Information and
communication technology devices is recommended
Intended learning outcomes
At the end of the course, students will have acquired an in-depth and
critical knowledge of the most relevant issues located at the crossroad
between technologies, including those related to artificial intelligence,
and legal institutions. In this perspective, they will also be able to analyze
and suggest business strategies to be adopted in the different legal and
regulatory contexts.
Course Contents
Legal frontiers in the Digital World. The complex relationships between
disruptive technologies, business strategies and (global) legal rules.
Big Data and Law. Definition of
Big Data. The business models based on the collection, processing and
use of large volumes of data. Critical analysis of the legal issues,
including smart contracts, privacy regulation, algorithmic accountability
and property rights. The legal, policy and regulatory issues pertaining to
Artificial Intelligence. The problems concerning an accountable, fair and
transparent AI. the EU AI Act Compliance; the experiences of China and the United States in regulating the Artificial Intelligence. The possible legal frameworks. Intellectual Property in
the Information Age: patents, copyright, trademarks, trade secrets. The
economics and strategic management of IP in large corporations. The
standard setting organisations and the related legal issues. Intellectual
Property agreements and commercial contracts. Technology transfer. IP
and software licensing. Online Advertising and Applicable Legislation.
Firms’ strategies in advertising campaigns. Competition theory and
market structure; goals of competition policy; market power; market
definition; restrictive agreements; rules of reason v. per se rules; the
economics of collusion; horizontal cooperation; vertical restraints; singlefirm
conduct; the economics of market power and abuse of dominance;
excessive prices; predatory pricing; exclusive dealing and loyalty rebates;
refusal to deal; margin squeeze; tying; concentrations: unilateral and
coordinated effects; efficiencies. Mergers in digital markets and the "Killer acquisition" problem. Public and
private enforcement of competition rules. The Digital Markets Act and its intersection with competition law.
Reference Books
Papers, book chapters and other course materials concerning all the
topics will be handed out during the course, also on the basis of the
students interests. The course’ slides will be made available upon
students’ request.
Teaching Methods
Traditional frontal teaching is supplemented with dialogic discussion in
order to stimulate the active role by the students. Particular attention will
be also given to the critical analysis of real cases.
Assessment Method
Written examination. The exam aims at assessing whether the student has
acquired an adequate understanding of the institutions dealt with during
the lessons.
During the course, students are invited to present real cases concerning AI and other different firm strategies in the hi-tech domains.
Thesis assignment criteria
Marked interest for an issue. Passing of the exam.
Week 1
The legal frontier and new technologies. The complex interaction between technologies, business strategies, and
legal institutions. The intersection of law and technology is introduced, focusing on regulations affecting digital markets and Artificial Intelligence. From this perspective, the regulatory models adopted in different jurisdictions (EU, China, and the United States) in relation to these phenomena are first discussed. Mechanisms for mitigating systemic risks, algorithmic transparency, and the protection of users' fundamental rights are examined; the global challenges of cross-border supervision and enforcement in the current technology ecosystem are also scrutinised.
Week 2
Competition law and policy, with specific reference to digital markets.
Evolution of the competition theory and the main approaches to
competition law: Chicago, Harvard, Ordoliberal School. Objectives of
competition law: efficiency, welfare, market integration, economic
inequality. Legal frameworks in the US, EU and Italy. Market power.
Product and geographic market. Demand and supply-side substitutability.
The SSNIP test. Empirical and econometric tools. The main application
problems and the digital markets. Barriers to entry.
Week 3
Single-firm conduct. Dominant position. Abuse and monopolization. Types
of abuses: exploitative and exclusionary practices. Excessive prices and
price regulation. The general approaches to conducts which can be
abuses: the US and EU perspectives. The intellectual property clash with
antitrust: legal monopolies vs. economic monopolies. The main types of
behavior that can be abusive when practiced by firms enjoying market
power. Refusal to deal and the essential facility doctrine: the economic
insights; the EU and US approaches; the Microsoft case. Tying and Bundling: economic analysis and efficiency explanations; EU and US
approaches; the Google case. Predatory pricing: economic theories, deeppocket
models, reputational models, signaling models and behavioral
approaches; EU and US approaches; the Amazon case. Discounts and
rebates: pro-competitive and anticompetitive effects; EU and US legal
analysis; loyalty discounts, bundled discounts and hybrid discount
schemes; the Intel case.
Week 4
Restrictive agreements in the digital markets: the economics of collusion. Algorithmic collusion.
Restrictions of competition as the object or the effect of cooperation.
Exemptions. Rule of reason and per se rules. Welfare effects of collusion.
Conditions leading to collusion. Tacit collusion and price parallelism. Plus
factors and facilitating practices. Horizontal cooperation. Block exemption
regulations. Individual assessment. Information exchange. Main types of
vertical restraints. Economic analysis. Vertical restraints under the US
and EU laws. Block exemption. Individual assessment: the E-books case
Week 5
Merger control in the digital environments. The economics of merger
control: quantitative and qualitative analysis. Typologies of mergers:
horizontal, vertical, conglomerate. Substantive tests in the US, EU and
Italy. Structural parameters. Unilateral and coordinated effects. The
procedure. Failing firm defence. Market shares and concentration levels.
Commitments and other remedies. The Google/DoubleClick and
Facebook/WhatsApp merger
Week 6
Artificial Intelligence: Major Regulatory Issues and the Global Challenge. The philosophical, legal, and geopolitical dilemmas surrounding AI governance are explored, analyzing how the different global power blocs—the US, China, and the European Union—are addressing the regulatory challenge. The balance between protecting citizens' fundamental rights and the need to avoid stifling technological and economic innovation is explored. The choice of a "horizontal" framework law (applicable to all sectors) versus a preference for "vertical" rules. The legal debate over the adequacy of existing law versus the need to create entirely new regulatory systems.
Week 7
EU Regulation 2024/1689 (AI Act). The (technical and operational) analysis of the first global law on artificial intelligence. The objective is to understand how the risk-based approach translates into compliance obligations, penalties, and deadlines for AI developers and users (not only) in Europe. The Regulation's Architecture: the subjective (suppliers, deployers, importers) and objective scope concerning the application of Regulation 2024/1689. The Risk Pyramid. Governance and Generic AI Models (GPAI). The special rules introduced for basic models and large language models (LLMs), including systemic risk management. Compliance obligations for the affected parties. The roadmap for its entry into force and the fining framework. The first practical cases.
Week 8
Big Data and Law. Definition of Big Data. The business models based on
the collection, processing and use of large volumes of data. The strategic
role of data analysis in the firms decision-making process and in the
competition discourse. The precompetitive and the negative effects in
terms of market competition, privacy and consumer protection. The
Facebook case. Critical analysis of the legal issues in relation to the data
revolution, including smart contracts, privacy regulation, algorithmic
accountability and property rights.
Week 9
The GDPR and data processing in high-tech contexts; the scope of the regulation with respect to business models based on the monetization of personal data and cross-device tracking; the algorithmic roles and responsibilities of tech giants and software service providers as data controllers or processors; the key rules applied to artificial intelligence, automated profiling systems, and predictive consent mechanisms under the principle of privacy by design; the impact of cross-border transfers of big data, the risks of technological surveillance, and the effectiveness of the fines for violations of the rules. The institutions responsible of its enforcement.
Week 10
The DIGITAL SERVICES ACT: from the e-commerce (Directive 2000/31/EC) to the single market for the digital services. The objectives of the DSA: security, transparency, and the protection of fundamental rights. The provider classification: from mere services conduit to VLOPs and VLOSEs. The principle of asymmetry of the due diligence obligations. Notice and action mechanisms and remedies for the users. The general liability exemption and the general ban on surveillance. Algorithmic transparency, recommendation systems, and systemic risks. Supervisory architecture: Digital Services Coordinators (DSCs) and the role of the EU Commission.
By the end of the session, students will be able to understand the structure and main objectives of EU Regulation 2022/2065; identify the different categories of online intermediaries and their obligations; analyze the new platform liability regime for illegal content; and assess the impact of the new rules on the protection of fundamental rights online.
Week 11
The DIGITAL MARKETS ACT: the European solution to enhance fair and contestable digital markets. The goals of the regulation and the actors involved. The role of gatekeepers; the prohibitions for companies falling within its scope. The do's and dont's for the parties. The rights for the consumers: choice of digital services, data ownership, seamless data portability, streamlined access, unbiased search results.
The rights for businesses: APP distribution, ensuring fair play, effective access to data, interoperability, fair ranking, fair sales terms
Week 12
The Digital Markets Act and the first cases concerning its application. Apple and Spotify; Meta and the "pay or consent" model; Apple and SIRI AI; Google and the service interoperability.