Under pressure, EU to scale back digital rules

EU digital chief Henna Virkkunen will unveil the proposals to ‘simplify’ AI and data protection rules – Copyright AFP John MACDOUGALL

The EU will unveil plans on Wednesday to overhaul its AI and data privacy rules after coming under pressure from European and US companies.

The proposals are part of the bloc’s push to cut red tape to drive greater economic growth and help European businesses catch up with American and Chinese rivals — and reduce dependence on foreign tech giants.

EU tech chief Henna Virkkunen will present the plans on Wednesday alongside the justice commissioner in charge of data protection, Michael McGrath.

Brussels has dismissed claims that its push to “simplify” its digital rules — deeply unpopular in the United States — are the result of pressure from US President Donald Trump’s administration.

For many EU states, 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.

Berlin hosted a Franco-German summit on Tuesday focused on propelling the bloc to lead in the AI race during which France’s Emmanuel Macron said Europe does not want to be a “vassal” dependent on US and Chinese tech companies.

Once proud of the “Brussels effect” — referring to the influence many EU laws had on other jurisdictions around the world — European lawmakers and rights defenders fear the EU appears to be withdrawing from being Big Tech’s watchdog.

The EU executive has its eye on changes to its landmark data protection rules and the AI law that only entered into force last year.

There could be one proposal in Wednesday’s package that would bring joy to nearly all Europeans: Brussels wants to tackle the annoying cookie banners that demand users’ consent for tracking on websites.

– Crumbling cookie banners –

Based on draft documents that could still change and EU officials, Brussels plans to:

– redefine personal data and how companies can use it, for example allowing firms to process such data to train AI models “for purposes of a legitimate interest”, but rights defenders have warned this could downgrade users’ privacy

– a one-year pause on implementing many provisions on high-risk AI, for example, models that can pose dangers to safety, health or citizens’ fundamental rights — a move that will please American and European firms.

Instead of taking effect next year, the provisions would apply from 2027.

Dozens of Europe’s biggest companies, including France’s Airbus and Germany’s Lufthansa and Mercedes-Benz, had called for a pause in July on the AI law which they warn risks stifling innovation.

Brussels has insisted European users’ data privacy will be protected.

– ‘Complex’ rules –

One lawmaker from EU chief Ursula von der Leyen’s conservative EPP grouping supported the push to simplify the digital rules.

“Europe’s problem is in the excessive complexity and inconsistency of the rules we already have. Laws built in silos, overlapping obligations, and uneven enforcement create uncertainty for businesses and fracture the single market,” MEP Eva Maydell told AFP.

But von der Leyen could face a difficult road ahead as the changes will need the approval of both the EU parliament and member states.

Her camp’s main coalition partners have already expressed concern.

In letters sent to the European Commission last week, socialist EU lawmakers said they oppose any delay to the AI law, while the centrists warned they would stand firm against any changes that put privacy at risk.