Global: European Commission Withdraws Draft Regulations on Technology Patents, AI Liability, and Consumer Privacy

The European Commission (EC) has officially withdrawn three draft regulations that aimed to govern technology patents, artificial intelligence (AI) liability, and consumer privacy on messaging platforms.

The proposed regulations faced significant resistance from industry stakeholders, and the EC acknowledged that approval by European Union (EU) lawmakers was unlikely.

EC Cites Lack of Agreement for Withdrawal

The EC announced its decision in annexes to its newly released work program. In the case of the technology patent regulation, the Commission stated:

“No foreseeable agreement — the Commission will assess whether another proposal should be tabled or another type of approach should be chosen.”

Similar justifications were provided for the withdrawal of the AI liability and consumer privacy regulations.

Scope of the Withdrawn Regulations

• Technology Patents: The scrapped proposal sought to regulate standard essential patents used in telecom equipment, mobile devices, computers, connected cars, and smart devices.
• AI Liability Directive: This directive would have allowed consumers to sue AI developers, providers, or users for damages caused by AI-driven technologies.
• ePrivacy Regulation: The proposed rule aimed to extend existing telecom privacy regulations to messaging apps like WhatsApp and Skype, imposing stricter data protection requirements.

Shift in the EU’s Regulatory Approach

The EC’s work program outlines its key initiatives for the coming year, while the annexes provide “evaluations and fitness checks” for newly proposed policies.

EC President Ursula von der Leyen emphasized the EU’s commitment to regulatory efficiency, stating:

“Citizens and businesses have called for a simpler and leaner European Union. This roadmap charts our course to a more competitive, resilient, and prosperous Europe.”

The decision to withdraw these regulations reflects an ongoing shift in the EU’s approach to technology governance. In January, reports suggested the EC was reconsidering its stance on investigations into U.S. tech companies ahead of Donald Trump’s presidential inauguration.

Additionally, speculation arose in September when two top EU regulators prepared to step down, signaling potential changes in the Commission’s regulatory priorities. However, previously enacted tech rules remain in force and will continue to be implemented.