MALTA Law and Practice Contributed by: Andrew J Zammit, James Bartolo and Nicholas Scerri, GVZH Advocates
Legal Considerations for Emerging Technologies in Malta’s TMT Sector
Civil Code (Chapter 16, Laws of Malta) provides that contracts legally entered into have the force of law for the contracting parties. Parties may go against what is stated in the general law by virtue of their agreement, unless there is a prohibition by the law itself by way of mandatory rules or because of a prohibition of public policy. IT ser - vice agreements would generally cover: • a detailed description of the service; • whether only services are being provided, or whether materials are also being supplied; • the payable fees; • term of contract and termination methods; • ownership over any intellectual or other prop - erty produced during the term of the agree - ment; • liability for the service provided and limita - tions thereon (usually governed by a Service Level Agreement); • insurance; • how changes to the agreement/services can be made; • notifications to the other party; • confidentiality, non-compete and non-solici - tation; • dispute resolution; • data processing (where personal data is accessible by the IT service provider); • independent relationship of the parties; and • whether the contract can be transferred. The above-mentioned provisions are relatively standard and provided that they have been agreed to by both parties, and that valid con - sent can be proved, a court would follow the terms of agreement between the parties when interpreting the contract, especially where the wording is unambiguous. However, lack of clar - ity and proper description of the expectations of the parties are the most common legal problems
The MCA regulates spectrum allocation and 5G deployment, ensuring compliance with Malta’s National Roadmap for 5G. Companies must obtain spectrum licences and adhere to elec - tromagnetic exposure regulations. IoT provid - ers using machine-to-machine (M2M) commu - nications must comply with Malta’s connectivity framework to ensure efficient numbering alloca - tion and network security. For AI-driven telecoms services, compliance with the Malta Digital Innovation Authority Act is essential. The MDIA certifies AI systems to ensure security and fairness, particularly for automated customer support, fraud detection and network optimisation. AI systems must align with the EU’s AI Act, preventing bias and unau - thorised automated processing. Malta enforces GDPR through the Data Protec - tion Act (Cap. 586), requiring telecoms opera - tors, IoT providers and AI platforms to protect personal data. The Office of the IDPC can inves - tigate and fine companies for unlawful data use. Businesses using smart surveillance, biometric authentication, or AI-driven profiling must con - duct DPIAs and ensure secure data processing in IoT networks. 7. Challenges with Technology Agreements 7.1 Legal Framework Challenges Legal Framework Features An entity that intends to enter into IT service agreements with another entity in Malta will be bound by the general concepts of Maltese con - tract law, unless the agreement stipulates that a different law should apply. As a general rule, the
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