CEE Legal Matters

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  • Magdalena Szwarc-Brozyna Joins Clyde & Co as Partner and Head of Real Estate

    Former Dentons Partner Magdalena Szwarc-Brozyna has joined Clyde & Co’s Warsaw office as Partner and Head of the Real Estate team, a new practice launched by the firm at the beginning of December.

    Joining with Szwarc-Brozyna is her team of former Dentons Senior Associate Paulina Dabek and Associate Maciej Kulpinski.

    Before the move, Magdalena Szwarc-Brozyna was with Dentons as a Senior Associate between 2015 and 2019, as a Counsel between 2019 and 2021, and as a Partner between 2021 and 2024. Earlier, she spent more than 12 years with Laszczuk & Partners.

    “Magdalena’s broad experience and excellent reputation in the market mean that our clients benefit from a leading real estate advisor, both in Poland and the region,” commented Partner Agnieszka Kulinska. 

    “I am delighted that together with my team we are strengthening the firm in a key area in the Polish market and globally,” added Szwarc-Brozyna. 

  • Legal Challenges for OpenAI

    In light of Elon Musk’s recently expanded lawsuit, which includes antitrust claims and names Microsoft as an additional defendant, OpenAI faces yet another legal challenge. As a global leader in the development of generative artificial intelligence, OpenAI remains committed to its mission: creating AI technology that benefits humanity while actively addressing legal and ethical dilemmas.

    Musk’s Lawsuit: Allegations of Market Monopolization

    According to the expanded lawsuit, OpenAI and Microsoft are accused of attempting to monopolize the generative AI market through exclusive licensing agreements and practices that allegedly exclude competition. Musk’s legal team argues that these agreements violate antitrust regulations, labeling them as “a merger lacking regulatory approval”.

    The lawsuit highlights several key issues:

    • Market Monopolization: Microsoft and OpenAI are alleged to jointly control critical resources and data essential for the development of advanced AI models, making market entry challenging for new competitors.
    • Data Misuse: The alleged use of data from the X platform and other sources without proper authorization presents a significant legal concern.

    Relationship with Microsoft

    The relationship between OpenAI and Microsoft represents a strategic partnership deeply rooted in AI development and deployment. Microsoft, as one of OpenAI’s largest financial backers, has invested billions of dollars to support the advancement of generative AI technologies, including ChatGPT. This partnership extends beyond financial support, encompassing technological integration that has significantly expanded the capabilities of both companies.

    Through this collaboration, OpenAI’s technologies have been embedded in Microsoft’s products, such as Azure and Office, providing billions of users worldwide access to innovative AI-powered tools.

    While the partnership has in many ways revolutionized the AI market, it has also faced criticism and legal scrutiny. Exclusive agreements and the dominance of Microsoft’s products in the market have raised concerns about potential monopolistic behavior, culminating in antitrust claims such as those in Musk’s expanded lawsuit.

    Conclusion

    Antitrust concerns in the AI industry are becoming an increasingly prominent focus for regulators worldwide. As technologies like generative AI grow to become integral to businesses and society, the need for regulation and fair market practices intensifies.

    Ultimately, legal proceedings like Musk’s lawsuit underscore the complexity and dynamism of the AI industry, highlighting the necessity for clearer legal and ethical frameworks.

    This article is for informational purposes only and does not constitute legal advice. For further information, feel free to contact us.

    By Ana Radojevic, Senior Associate, PR Legal

  • Pekin Bayar Mizrahi Advises Renewable Energy Systems on Sale of Esref Enerji Uretim to Metgun Enerji

    Norton Rose Fulbright’s Turkish affiliate Pekin Bayar Mizrahi has advised Renewable Energy Systems Limited and its Turkish subsidiary RES Anatolia Holding on the sale of Esref Enerji Uretim to Metgun Enerji. Sole practitioner Sinem Demiray Gunesol advised Metgun Enerji.

    Renewable Energy Systems Limited is an independent renewable energy company.

    Esref Enerji Uretim and Metgun Enerji are Turkish renewable energy companies.

    The Pekin Bayar Mizrahi team included Partner Ferhat Pekin and Counsel Galya Kohen Benbanaste.

  • Greenberg Traurig and Penteris Advise on Echo Investment’s Sale of React Office Building in Lodz to Summus Capital

    Greenberg Traurig has advised Echo Investment on the sale of the React office building in Lodz to Estonian investor Summus Capital. Penteris advised Summus Capital.

    The closing of the transaction is subject to the City of Lodz not exercising its pre-emption right.

    Echo Investment is a Polish development company. It has been listed on the Warsaw Stock Exchange since 1996.

    Summus Capital is a real estate investment holding group established to invest in commercial real estate across the Baltic countries.

    According to Greenberg Traurig, the React office building offers 15,000 square meters of gross leasable area spread across seven above-ground floors. 

    The Greenberg Traurig team included Deputy Managing Partner Radomil Charzynski, Local Partner Kamil Majewski, and Associates Jakub Gajzler and Maciej Smaczynski.

    The Penteris team included Managing Partner Agnieszka Pytlas, Partner Katarzyna Sawa-Rybaczek, Associates Justyna Jozwiak and Ewa Olszewska, and Head of Tax Piotr Prokocki

  • GKC Partners and Unsal Attorney Partnership Advise on Gdz Elektrik’s USD 400 Million Issuance

    White & Case’s Turkish affiliate law firm GKC Partners has advised joint bookrunners Citi Global Markets Limited and Morgan Stanley on Gdz Elektrik’s Rule 144A/Reg S USD 400 million issuance. Unsal Attorney Partnership advised Gdz Elektrik.

    Gdz Elektrik is a Turkish utilities company.

    The GKC Partners team included Partners Ates Turnaoglu and Derin Altan, Associates Can Argon, Ahmet Ekin Cinar, and Hasan Karakelle, and Legal Intern Muhammed Asula.

    The Unsal Attorney Partnership team included Managing Partner Furkan Unsal, Partners Sait Baha Erol and Omer Faruk Senol, Senior Associate Ahmet Erturk, and Associate Zeynep Yurttutmus.

  • New White & Case Local Partners in Prague and Warsaw

    White & Case has announced a new Local Partner hire in Prague as well as four new Local Partners in Prague and Warsaw as part of its latest promotion round.

    In August 2024, Jana Chwaszcz joined the mergers & acquisitions practice in the firm’s Prague office as a Local Partner. Before the move, Chwaszcz was a Senior Associate with A&O Shearman which she first joined in 2015 as a Trainee. In 2017, she became an Associate and was promoted to Senior Associate in 2021. Earlier, she was a Junior Associate with Hartmann, Jelinek, Frana, and Partners between 2013 and 2015.

    Warsaw-based former Associate Karolina Brzeska has been named a Local Partner in the international arbitration practice. She has been with the firm since 2018, when she joined as an Associate. 

    Prague-based former Associate Tadeas Matys has been promoted to Local Partner in the debt finance practice. He has been with the firm since 2016. He was first a Legal Intern between 2016 and 2017 and an Associate since.

    Former Counsel Magda Olysarova has been promoted to Local Partner in the firm’s antitrust practice in Prague. She has been with the firm since 2006 when she joined as an Associate. Earlier, she worked in-house as a Lawyer with CSOB between 2003 and 2006.

    Finally, former Associate Jan Vacula, based in Prague as well, has been promoted to Local Partner in the capital markets practice. He has been with White & Case since 2017, when he joined as an Intern. He was promoted to Associate after four months.

    The promotions are effective January 1, 2025.

    Editorial Note: After its publication, this article was updated to replace the shorthand “Partner” title to the formal job titles of “Local Partner” for all five in the heading and first paragraph as well.

  • Reff & Associates Advises Damen Galati Shipyard on EUR 25 Million Financing from Exim Banca Romaneasca

    Reff & Associates | Deloitte Legal has advised Damen Galati Shipyard on EUR 25 million in financing from Exim Banca Romaneasca.

    Damen Galati Shipyard is a Romanian shipbuilder.

    According to Reff & Associates | Deloitte Legal, the funds will be used by the shipbuilder to implement its investment program, focusing on the expansion and equipping of ship assembly facilities.

    The Reff & Associates | Deloitte Legal team included Partner Andrei Burz-Pinzaru, Senior Managing Associate Patricia Enache, and Senior Associate Bogdan Vlad.

  • Greenberg Traurig and Filip & Company Advise on Qemetica’s PLN 1.2 Billion Acquisition of PPG’s Precipitated Silica Business

    Greenberg Traurig and Filip & Company have advised Polish chemical group Qemetica on its acquisition of PPG’s precipitated silica business for approximately PLN 1.2 billion (USD 310 million). Hogan Lovells advised PPG.

    Qemetica operates in seven business areas including the production of soda ash, evaporated salt, agricultural solutions, polyurethane foams, silicates, and glass, as well as rail transport services. It has nine production plants in Poland and Germany and distribution companies in the crop protection business across several European countries.

    PPG is a coatings, specialty materials, and glass products company.

    According to Greenberg Traurig, through the acquisition, Qemetica has obtained two manufacturing facilities in the United States and the Netherlands, as well as leases for manufacturing and R&D facilities in two additional U.S. locations. Precipitated silica is a crucial raw material used in the production of “green” tires, batteries, and fillers – sectors characterized by stable growth and a positive outlook.

    The Greenberg Traurig team included Poland-based Partners Andrzej Wysokinski and Robert Gago, Local Partner Maciej Pietrzak, and Senior Associates Filip Drgas and Grzegorz Socha as well as further lawyers in the U.S. and the Netherlands.

    The Filip & Company team included Senior Associate Roxana Rosca and Associate Sergiu Paun.

    The Hogan Lovells team included lawyers from the Netherlands, Belgium, and the U.S.

  • Cobalt Advises PSA on Acquisition of Parnu Sadam from Transcom

    Cobalt has advised PSA on its acquisition of 50% of Parnu Sadam shares from Transcom.

    According to Cobalt, “Parnu Sadam is one of the most successful companies in Parnu [Estonia], which organizes ship traffic in the port, provides stevedoring services, and manages the warehouses and storage facilities on the territory of the port. The port’s services include loading and unloading of vessels, warehousing of goods, and towing of vessels. The port is visited by more than 500 merchant vessels a year and handles approximately 2 million tons of goods per year.”

    The Cobalt team included Managing Associate Ott Aava, Senior Associate Kerli Salu, and Associate Elis Toim.

    Cobalt did not respond to our inquiry on the matter.

  • CK Legal Advises on Kruk’s PLN 125 Million Bonds Issuance

    CK Legal Chabasiewicz Kowalska has advised Kruk on its latest issuance of series AP2 bonds.

    Kruk operates in the debt collection industry across Poland and Central Europe. The company has been listed on the Warsaw Stock Exchange since 2011.

    According to CK Legal, “thanks to a dedicated mechanism provided in the base prospectus for the 11th Bond Issuance Program of Kruk, the company was able, during the offering, to increase the number of offered AP2 series bonds and their total nominal value from PLN 100 million to a maximum of PLN 125 million in response to high investor demand. The bond offering attracted significant interest and was concluded with a proportional subscription reduction of 62%.”

    Earlier this year, CK Legal advised Kruk obtaining the Polish Financial Supervision Authority’s approval for its bond issuance program (as reported by CEE Legal Matters on October 18, 2024), on its AO7 bond issuance (as reported by CEE Legal Matters on March 1, 2024), and on the issuance of its AO5EUR and AO6EUR series bonds (as reported by CEE Legal Matters on February 12, 2024). In 2023, CK Legal advised Kruk on its AO3EUR and A04EUR issuance (as reported by CEE Legal Matters on December 20, 2023).

    The CK Legal team included Founding Partner Wojciech Chabasiewicz and Head of Capital Markets Anita Gwozdz.