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Date
17 November 2015

Mishcon Thinks: E-Commerce and Regulation - Part 3

Partner and Head of the Betting & Gaming Group Susan Breen talks to Michael Hayman of Seven Hills about how regulation is affecting global e-commerce businesses.

Transcript

Mishcon Thinks

E-Commerce and Regulation

Michael Hayman MBE
Seven Hills

Tell us about your predictions for the future. I mean how is this is going to play out?

Susan Breen
Partner

Well like a number of other sectors we’ve seen a huge amount of merger and acquisition within the betting and gaming sector.  It’s in part to do with competition but it’s also to do with pressure on margins so to survive in a very technological, advanced, quick-paced consumer facing business you have to be bright, sharp and only the most profitable are going to survive.  That’s driving companies to merge to do business together.  That should give the larger businesses the capacity to deal with the increasing levels of compliance.  A big issue there will be data protection.  If you think that an insurance company, a bank, a gambling business has tens of thousands, hundreds of thousands, millions of customers – what do they do with all that personal data?  They should have compliance departments that are well able to cope with the increasing levels of regulation had come down so only the biggest and the most profitable will survive.

Michael Hayman MBE
Seven Hills

So you see much more in the work of M&A, much more in the work of very specific areas like data, data protection and data management.  Is that going to be the future work load if you like of a firm like Mishcon do you think?

Susan Breen
Partner

I would hate to say that I thought the winners in this will be the legislators, Government, advisors, accountants but I give you a couple of examples.  If you were to take one large consumer facing e-commerce business and think that the systems that it has in place today to deal with treasury, money laundering, data, vat, tax are one size box and then you add to it all of the new legislation and you times that by twenty eight countries, you’re finding that the system…

Michael Hayman MBE
Seven Hills

Quite an in box.

Susan Breen
Partner

…of the businesses are just, they are not able to cope with the vast amounts of data that need to be put into the fields.  We are seeing a lot of larger companies consult with either accountants or firms like ourselves to help them create systems and robust procedures and techniques and terms and conditions to help them comply with some of this legislation.

Mishcon de Reya