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  • Tech Legal Outlook 2025

Tech Legal Outlook 2025

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The year 2025 marks a period of change with new governments pursuing growth amid significant geopolitical, economic and societal challenges.

AI is driving change and investment, and we continue to see increasing regulatory intervention and heightened litigation risk in the digital sphere.

These forces create a complex backdrop for corporates and investors. Yet the tech investment outlook is cautiously optimistic, with M&A and investment expected to increase.

We explore the key global trends in the technology sector that we believe will shape the legal outlook for businesses in 2025 and beyond.

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Key global trends in the technology sector for 2025 and beyond

The year 2025 marks a period of change with new governments pursuing growth amid significant geopolitical, economic and societal challenges.

AI is driving change and investment, and we continue to see increasing regulatory intervention and heightened litigation risk in the digital sphere.

These forces create a complex backdrop for corporates and investors. Yet the tech investment outlook is cautiously optimistic, with M&A and investment expected to increase.

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What is the tech legal outlook following the U.S. presidential elections?

Trump is focused on ensuring America’s ability to dominate the Tech Industry and on winning the ongoing U.S.-China battle for AI supremacy. 

While it remains to be seen how Trump will deliver on his election promises, one thing is clear: Trump will drive change and the impacts will be felt across the tech world.

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What is the tech legal outlook in Europe?

The new European Commission took office on 1 December with a key objective of improving European competitiveness.

In the coming months we will see how the EU navigates the challenging geopolitical and economic environment to target growth, investment and innovation, all the while protecting European citizens.

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Key Themes 

Tech investment

1.1

Growth in tech M&A and investment

With growth in the value of tech M&A and investment in 2024, there is a more positive outlook for 2025 despite the geopolitical and economic headwinds. The decisive outcome in the US elections has brought more stability to the markets and a post-election bounce in deal-making is expected in Q1 2025.    

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1.2

The US-China tech rivalry intensifies

Geopolitical tensions and a fragmented international order complicate cross-border business. One notable example is the US-China technology bifurcation. The rivalry between the world’s superpowers for tech supremacy affects economic development, altering supply chains, restricting trade and investment, imposing controls on data flows, and challenging AI development through national security measures.

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1.3

Data Centres and AI: the shape of things to come

Major technology companies at the forefront of AI advances are shaping the future of data centres, driving growing demand for data centre capacity and sustainable solutions to power them. With demand for data centre capacity expected to grow more than threefold within 5 years, we expect significant demand for data centres with more reliable and carbon free power.

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1.4

New beginnings in merger control: a wave of change?

2025 is set to be a year of significant political change on both sides of the Atlantic. This leaves a question mark over the implications for merger control policy. With the last decade characterised by increased scrutiny and intervention rates, we wait to see whether 2025 will have more of the same in store or mark an inflection point.

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Regulation and risk in the digital economy

2.1

International data transfers under scrutiny

In 2025, businesses will face a dynamic regulatory landscape where data laws are increasingly influenced by geopolitical tensions. We anticipate heightened scrutiny of international transfers of personal data from the EU, with regulators broadening their focus beyond transfers from the EU to the US, to focus on transfers from the EU to jurisdictions lacking EU adequacy decisions.

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2.2

The EU’s increasing action on online safety

The European Commission has started to flex its powers under the EU’s landmark online safety legislation, the Digital Services Act (DSA). It has issued Requests for Information (RFIs) and initiated infringement proceedings against a number of Very Large Online Platforms (VLOPs), and we expect further regulatory intervention and litigation to follow in 2025 and beyond.

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2.3

The era of digital platform regulation is here

2025 will mark another year of evolution for digital markets regulation: new regimes (notably in the UK) will come into force, while more established regimes (particularly in the EU) continue to shape the digital landscape. Navigating this patchwork will require strategic coordination, by both regulators and firms alike.

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2.4

Navigating novel enforcement remedies against Big Tech platforms

In 2025, the US may pave new ground in implementing novel remedies in Big Tech enforcement cases. Remedies could include behavioural mandates to open platforms up to third parties and potential divestitures to break up perceived conflicts. Courts will grapple with the appropriate standard for what remedies should achieve and how they can be effectively administered.

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2.5

Litigation funders’ focus on tech

Tech companies are increasingly at risk of large-scale litigation in the UK and the EU due to increasing regulatory scrutiny and strong political and legislative support for litigation funding and class actions. Antitrust actions have increased dramatically in recent years and we expect that to continue in 2025 and beyond. 

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