Inline Insights

The concept of mobile payments (“m-payments”) has been around since the late 1990s, but original predictions of rapid growth turned out to be overly optimistic. A lack of interoperability between different services, combined with a lack of consumer trust in these new forms of payment, hindered widespread adoption of m-payment services.

On 28 July, the British Government announced its first licensing round for six years for companies who wish to prospect for onshore oil and gas. The announcement was top of the news agenda, and there was no mistaking the excitement in UK ministerial (and Conservative) voices as they claimed that the speeding-up of exploration for shale could boost jobs, economic growth and national energy security.

But a deeper analysis suggests that it would be wise to temper this enthusiasm with some realistic appraisal of the obstacles that will have to be addressed before we reach the ‘promised land’. 

Now that the dust has settled a little, it’s worth examining Prime Minister David Cameron’s recent reshuffle in more detail, and what it might mean for the coalition’s policies on climate change and energy between now and next May’s General Election.

Price Comparison Websites (PCWs) are popular tools amongst tech-savvy consumers, especially in the consumer goods, energy and financial sectors. The key to their attractiveness is that they allow consumers to quickly search for and compare the best deals in the market. PCWs usually operate on either a flat-fee, or a commission-based model and attract new customers via online and offline advertising. Some of the biggest players have become very profitable, thus attracting new companies to enter the market.

Cabinet reshuffles under David Cameron have been noticeably less dramatic than those of his predecessors. This all changed yesterday. The news on Monday night that William Hague was resigning as Foreign Secretary, to be replaced by Philip Hammond, was the first bit of news to make waves well beyond the Westminster village. Arguably the biggest surprise was the news that Michael Gove was being replaced as Education Secretary by Nicky Morgan.

At the beginning of the month, the European Banking Authority (EBA), the institution charged with overseeing the European banking sector, proposed guidelines for a regulatory regime for virtual currency. The report has now been presented to the EU Council, Commission and Parliament for consideration. The report also issues guidelines for national supervisory bodies.

Goldman Sachs received an $800,000 fine from US regulators a fortnight ago for failing to meet the guidelines for trading within a private forum. Private trading platforms, commonly known as dark pools, now account for 15% of all US trading over 40 closed exchanges. Regulators are beginning to take note and see how they can limit the risk involved.

Clothes which measure your heart rate and locate you via GPS while you run. Smart watches that can be used as an extension of your smartphone. The ability to access the internet with your glasses.  These are just a few examples of the most recent wearable technology devices.

But is there enough demand for these innovative products? According to the International Data Corporation (IDC), estimated global sales will exceed 19 million units in 2014, more than triple last year’s sales. In 2018, sales are predicted to increase up to 111.9 million units.

For all that some of the media (in the UK at least) enjoy stirring the pot about the unsuitability of renewables projects because of their impact on the landscape, on local communities, etc, investors and the finance sector will tell you that is policy direction and regulatory stability which counts.

The way in which people listen to music has been fundamentally changed by digital technology. The rapid growth in music streaming, in particular, has led some even to argue that it could destroy the music industry entirely. Regulators are having to deal with this digital shift as copyright rules, and other associated regulations, were often designed decades ago. The pace of technological change can also mean that even when regulation is updated, it can quickly become out-of-step with the latest advancements. The disruption is huge, as are the headaches for regulators and policy makers.

The questions of who will occupy the top jobs on environment and energy in Brussels over the next five years, particularly in the European Parliament (EP) and in the European Commission, will matter greatly. There is a big policy agenda ahead, coming at a testing time for European policies on energy markets and security of supply, which will have price implications for industry and consumers, and the decarbonisation strategy.

The sharing economy makes headlines daily: from anti-Uber protests across Europe to Airbnb's recent £5.9bn valuation, new start-ups entering the private sector are offering more things to share (or rent, swap, borrow or barter) and more ways to do so.

In recent weeks there have been numerous regulatory developments in the peer-to-peer car sector. The ongoing regulatory battles of Uber and Lyft, in particular, are grabbing the headlines and have illustrated how this is an area in which the regulatory environment is far from settled. The disruptive business models of such companies, all underpinned by advances in technology, are forcing policy makers to adapt regulatory frameworks which were often put in place decades ago.

About a year ago, Amazon’s CEO Jeff Bezos announced that Amazon were testing unmanned drones – called Octopers – to start delivering packages to customers in five years’ time. This announcement gave Amazon a PR boost; and was perhaps also initiated in the hope of raising awareness around businesses being given authorisation to use drones commercially.

According to the US drone industry, regulation is necessary for it to be profitable, as current regulations in most jurisdictions prevent unmanned aerial vehicles (UAVs) from flying over densely populated areas.

The EU needs to make the single European energy market a reality. But to achieve this, it will need to concentrate more on incentivising investment, infrastructure and technical issues rather than on grand political gestures.

Last Thursday, Japan’s Liberal Democratic Party (LDP) announced that it is not currently looking to regulate virtual currency. This is a significant announcement as there previously was uncertainty over how state officials, particularly in Japan, would react following the collapse of the leading Japanese Bitcoin exchange, Mt. Gox and the loss of over $420 million worth of Bitcoins. 

The inaugural London Technology Week comes to a close today. Featuring over 200 events, the week-long showcase has shone a light on many of the innovative companies who are thriving in London. More broadly it has underlined the growing sense that London is fast becoming one of the leading tech centres in the world. Former Mayor of New York, Michael Bloomberg, who joined London Mayor Boris Johnson in launching the event on Monday, went as far as declaring that London is now a real challenger to Silicon Valley. Beyond the fanfare, an important thread of this week has also been the growing discussion about the challenges which need to be addressed if London is to truly cement its place as a global tech leader.

From guns to body parts,3D printing technology has introduced a digital manufacturing revolution, which is already disrupting some of our well-established industries.

Companies are now able to print silicone, latex, ceramic, clay, play dough, Nutella, or icing sugar. In the medical field, 3D printing brings the ability to print replacement body parts, organs, skin and bones. NASA has recently purchased a 3D printer for the International Space Station in order to produce spare parts and other items, cutting transportation costs and improving safety. In China, a company has used large 3D printers to build 10 detached one-storey houses in just a day. However, technology is advancing faster than regulation. Very soon, regulators will need to consider the implications of the recent emergence of 4D printing.

Things may be looking up for the EU’s “flagship” climate policy instrument. But much more needs to be done from the autumn.

The development of driverless cars has seen a resurgence of interest of late. This is no doubt partly due to the publicity Google generated from trialling the concept. But how have regulators reacted to the idea of driverless cars. Will regulation stand in the way or facilitate this giant leap forward in transport innovation?