Inline Insights

The technology sector has rightly become a source of optimism for all UK politicians in recent years. Rapid growth, job creation and sustained investment have become the norm. Recently published statistics from Tech City UK in its Tech Nation report indicate that digital job growth in the UK will outperform all other occupation categories by 2020. In addition, 1.46 million people - 7.5% of the entire UK workforce - are already employed in the digital industries. Importantly, the report found that 74% of digital companies in the UK operate outside of London, with significant clusters of activity in areas such as Greater Manchester, Brighton and Hove, Belfast and South Wales. The supply side is clearly getting stronger with the presence of not just a thriving tech start-up scene, but also a significant number of established and global tech players operating, and investing, across the UK. On the flip side, the demand side is becoming more demanding. Businesses and consumers increasingly expect digital, and not analogue, to be the default. This, of course, is both a great challenge and opportunity for the sector.

If last autumn was the settling-in period, the New Year is the time for the new European Commission to get moving on its priorities. The European Parliament elected last May has now bedded in, the Committees have established a work programme, and the parliamentarians will be keen to start making an impact on policy-making and regulatory measures. The next few months are therefore likely to see a lot of activity. As energy policy - and its multiple linkages with the wider European economy - has already been highlighted by Juncker and his senior lieutenants as one of the most important issues on the agenda, Commission officials in DG Clima and DG Energy are going to be busy, as will the ENVI (Environment) and ITRE (Industry, Trade and Energy) Committees in the Parliament. This piece analyses the key themes and what may merge in terms of concrete policy or legislative proposals.

In our recent analysis piece about the future regulation of remotely piloted aircraft systems (RPAS), we provided some insight into the main EU institutions and agencies involved in the creation of harmonised rules across Europe. Since then, the 2016 deadline the European Commission had initially set for new regulations to be approved has been removed, and not replaced.

In Lima, at the beginning of this week, after two weeks of the usual tortuous negotiations, the 196 parties to the UN Framework Convention on Climate Change (UNFCCC) emerged with the Lima Call for Climate Action. This sets out the main priority issues for the parties in relation to the landmark COP 21 in Paris in December 2015 - the deadline for an international agreement on climate change - and attaches a 39-page document (a “non-paper”) containing various options for different elements of  a draft negotiating text.

This note analyses Lima’s outcomes and the prospects for an international climate agreement in Paris 12 months away.

On 1 December representatives of the 196 parties (member countries) to the United Nations Framework on Climate Change (UNFCCC) will gather in Lima for the annual Conference of the Parties (COP) international meeting. The climate negotiations have in recent years - especially since the conspicuous failure of parties at Copenhagen in 2009 to agree an international treaty - tended to be regarded as a non-event, an interminable discussion from which nothing material ever emerges. Will Lima, COP 20, be any different?

According to a recent report, the total global spend on advertising will reach £320.5bn over the course of this year, boosted by 17.1% growth in internet advertising. The growth of the “adtech” industry is dramatically changing the way that advertisers, publishers and consumers interact. This article will look at a key technological driver of this growth, known as real-time bidding (RTB), and explore what we can expect from this in the next decade.

Remotely Piloted Aircraft Systems (RPAS), more commonly referred to as ‘civil drones’ or ‘unmanned aerial vehicles’ (UAVs), can perform tasks that manned systems are sometimes unable to perform. They can be useful for surveillance purposes, border control, agriculture, firefighting, or media and entertainment, amongst other applications. The EU and some of its Member States have in recent years acknowledged the benefits of this new technology. The latter have, in certain cases, introduced new regulations that enable the industry to flourish, whilst minimising potential issues that may arise within their territory.

With the news on Monday that the UK Government has announced an independent sharing economy review, to be led by Love Home Swap CEO Debbie Wosskow, and also the recommendation last week from Labour Digital in its Number One in Digital report that the Government should “conduct a review the rules and regulations surrounding the sharing economy”, it is evident that this issue is becoming increasingly a topic at the forefront of politicians’ thinking. Given these developments, as well as the recent publication of reports from Nesta and PwC, it proved a timely moment for Inline to gather leading thinkers, business representatives and policy makers at both the Labour and Conservative Party conferences to discuss what this all means for the UK.

Following on from our event on Tuesday 23 September at the Labour Party conference, we have assembled another panel of leading thinkers on the sharing economy for an event at the Conservative Party conference on Monday 29 September. We will be discussing a number of issues such as the economic opportunity for the UK, and some of the emerging regulatory themes in the sharing economy.

We are delighted to be hosting fringe events at both the Labour and Conservative Party Conferences this year. We have assembled a panel of leading thinkers on the sharing economy to discuss everything from the economic opportunity for the UK, to some of the emerging regulatory trends. Panellists and event details for the Labour Party fringe event can be found below. The full Conservative Party fringe line-up will be announced early next week.

It has become increasingly common for individuals to find their partners online, a trend which started around 1997. Back then, not everyone acknowledged the benefits of this activity, which was perceived as a rather impersonal way of finding love. In recent years, a new generation of tech savvy individuals has emerged, which regularly uses devices to keep in touch with their friends and relatives, as well as for access to online dating sites or apps. In addition, older adults have also discovered the benefits of online dating services to connect with other people; and today they represent a significant segment of the online dating market. Why struggle to find someone special in a crowded bar when you can do it more easily and effectively from the comfort of your own home?

The American business magazine, Forbes, recently crowned London ‘the world’s most influential city’, paying special attention to the role it plays in leading innovation in technology. The accolade comes on the coattails of Chancellor George Osborne announcing the launch of a major new trade body for the UK FinTech industry, in London’s Canary Wharf.

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.

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.

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.