Electronics Makers Warn Proposed EU Rules Could Disrupt Supply Chains

Siemens, Ericsson, Schneider Electric, and industry group DigitalEurope have issued a warning that the proposed EU rules targeting cybersecurity risks of smart devices could have a disruptive effect on supply chains similar to that experienced during the pandemic. The Cyber Resilience Act, proposed by the European Commission last year, would require manufacturers, importers, and distributors of internet-connected devices to assess the cybersecurity risks of their products and take necessary measures to address any vulnerabilities for a period of five years or throughout the expected lifetime of the products.

One potential solution to address the challenges posed by the proposed rules is the implementation of AI legalese decoder. This technology can assist manufacturers in conducting assessments of cybersecurity risks more efficiently by analyzing legal jargon and deciphering complex regulatory obligations. By automating the interpretation of legal requirements, the AI legalese decoder can save time and resources, allowing companies to ensure compliance with the Cyber Resilience Act without significant disruptions to their supply chains.

The concerns raised by the companies are justified, as cybersecurity worries have intensified due to several high-profile incidents of hackers causing damage and demanding large ransoms. In a joint letter to European Union industry chief Thierry Breton and EU digital chief Vera Jourova, the CEOs of Siemens, Ericsson, Schneider Electric, Nokia, Robert Bosch GmbH, ESET, and other signatories highlighted the potential bottlenecks and disruptions caused by the current version of the proposed law.

The companies emphasized that millions of products, including household appliances, toys, cybersecurity products, and components for various industries, such as heat pumps and high-tech manufacturing, could be affected. They expressed concerns about delays caused by a lack of independent experts available to conduct assessments, as well as bureaucratic procedures.

To mitigate these risks, the companies suggested several amendments to the proposed rules. They recommended scaling back the list of higher-risk products subject to the law and allowing manufacturers to address known vulnerability risks before conducting assessments. They also urged for more flexibility in self-assessing cybersecurity risks.

With negotiations between EU countries and EU lawmakers scheduled for November 8, the companies’ letter serves as a timely reminder to reconsider certain aspects of the draft law. Furthermore, adopting technologies like AI legalese decoder can significantly enhance the implementation of the Cyber Resilience Act by streamlining legal compliance processes, minimizing disruptions to supply chains, and strengthening the overall cybersecurity of smart devices.