#Ethics & Compliance
The European Commission nails X (ex-Twitter) and accuses it because of misleading its users
Accused of misleading its users, the social network X risks a fine of up to 6% of its turnover if it does not take steps to remedy the shortcomings identified in the next few months. The European Commission considers that the use of blue ticks, which are supposed to certify the authenticity of accounts and therefore of the information published on the platform, is in breach of European Union rules. These ticks allegedly lack transparency in terms of “the advertising disseminated and the access to data for researchers”. Accounts verified by blue ticks, once synonymous with reliability, can now be obtained by anyone, allowing malicious actors to abuse the system, according to the European Commissioner for the Internal Market. This is the first case against a company since the new European regulation on digital services (DSA) comes into force in 2023. > Read article
A green funds manager was sanctioned for greenwashing
The Financial Market Authority (AMF) and Primonial REIM, an asset management company, have reached a settlement which involves the payment of a fine for “shortcomings in the sustainability communication” of its green funds, as the company did not comply with the new rules on SRI (socially responsible investment) labelling. This case is evidence of the AMF’s stated intention to “clean up” green funds in 2023 in order to clarify the situation for investors. At the same time, the Ministry of Economy and Finance also took up the issue and published a new SRI reference framework, which came into force in March 2024, giving companies one year to comply. > Read article
#European Arrest Warrant, Extradition & Interpol
Interpol announces a major crackdown on West African financial fraud
After a five-year investigation, Interpol has announced the dismantling of a “Nigerian-led transnational criminal network” in Argentina. Operation Jackal III, which lasted three months, led to 300 arrests, the freezing of 720 bank accounts and the seizure of $3 million. 21 countries were involved, including Ivory Coast, Nigeria, France and Italy. The operation also led to the dismantling of the Nigerian Black Axe Confraternity (BAC) network, which was involved in “online fraud, human trafficking, drug trafficking and violent crime”. Back in 2023, Interpol warned of the mechanisms of online crime, such as “fraudulent transfer orders, sentiment, inheritance or advance payment scams, credit card fraud, tax fraud and money laundering operations”. > Read article
#Litigation and International investigation
The ECJ confirms the possibility for defendants to participate in their trial by videoconference
In a decision handed down on 4 July 2024, the European Court of Justice (“ECJ”) ruled on a preliminary question referred by a Bulgarian court concerning the possibility for a defendant to participate in his trial by videoconference. In this case, the defendant was a defendant before the Bulgarian courts but was resident in the United Kingdom and therefore asked the Sophia court to allow him to attend the trial by videoconference. The Bulgarian court, noting that this possibility was not provided for by Directive 2016/343 on the effective right of suspects to be present at their trial, decided to refer the matter to the ECJ for a ruling. The ECJ ruled that the Directive on the effective right of suspects to be present at their trial does not preclude an accused person from participating in a trial via videoconference, provided that all his other fundamental rights are respected, such as the right to a fair trial, the presumption of innocence and the rights of the defense. The organization of such a trial presupposes that the defendant can follow the proceedings, be heard and communicate effectively and confidentially with his lawyer without technical obstacles. > Read the ruling
#Bastille Day Newsletter:
For the past nine years, Navacelle has been publishing a newsletter, reviewing major legal events of the past year in France in the firm’s main practices. This year, the team if offering an overview of the latest developments in white collar crime, litigation & regulatory investigations, environmental law & duty of care, ethics & compliance and arbitration. With the multiplication of standards relating to corporate liability, the growing intervention of politicians in the economy and the development of regulators’ guidelines, the last 12 months have been rich in legal events. > Read publication
