The European Union executive proposed rolling back key artificial intelligence (AI) and data privacy rules as part of a push to slash red tape and help Europe’s high-tech sector catch up with global rivals.
The landmark EU tech rules have faced powerful pushback from the US administration under President Donald Trump, but also from businesses and governments at home complaining they risk hampering growth.
Brussels denies bowing to outside pressure, but it has vowed to make businesses’ lives easier in the 27-nation bloc – and today it unveiled proposals to loosen both its rules on AI and data privacy.
Those include: Giving companies more leeway to access datasets to train AI models like personal data when it is “for legitimate interests” and giving companies extra time – up to 16 months – to apply “high-risk” rules on AI.
In a plan many Europeans will welcome, Brussels also wants to reduce the number of cookie banner pop-ups users see, which it says can be done without putting privacy at risk.
“We have talent, infrastructure, a large internal single market. But our companies, especially our start-ups and small businesses, are often held back by layers of rigid rules,” European Commissioner for Digital and Frontier Technologies Henna Virkkunen said in a statement.
After cheering the so-called “Brussels effect” whereby EU laws were seen as influencing jurisdictions around the world, European lawmakers and rights defenders increasingly fear the bloc is withdrawing from its role as Big Tech’s watchdog.
Campaigners from different groups including People vs Big Tech drove across Brussels today with large billboards calling on European Commission President Ursula von der Leyen to stand up to US President Donald Trump and the tech sector and defend the EU’s digital rules.
The EC says the plans will help European businesses catch up with US and Chinese rivals and reduce dependence on foreign tech giants.
For many EU members, the concern is that the focus on regulation has come at the expense of innovation, although Brussels insists it remains committed to protecting European citizens’ rights.
But experts say the bloc lags behind the bigger economies for several reasons including its fragmented market and limited access to the financing needed to scale up.
The EU raced to pass its sweeping AI law that entered into force last year but dozens of its biggest companies – including Airbus, Lufthansa and Mercedes-Benz – called for a pause on areas of the legislation they said risked stifling innovation.
Brussels met them part way by agreeing to delay applying provisions on “high-risk” AI – such as models that could endanger safety, health or citizens’ fundamental rights.
With the proposed change on cookie banners, an EU official said the bloc wanted to address “fatigue” at the pop-ups seeking users’ consent for tracking on websites and “reduce the number of times” the windows appear.
The EC wants users to be able to indicate their consent with one click and save cookie preferences through settings on browsers and operating systems.
Brussels has insisted European users’ data privacy will be protected.
EU justice commissioner Michael McGrath said: “It is essential that the European Union acts to deliver on simplification and competitiveness while also maintaining a high level of protection for the fundamental rights of individuals – and this is precisely the balance this package strikes.”
