The European Commission has scrapped draft rules regulating technology patents, AI liability, and consumer privacy on messaging apps due to intense lobbying from industries and Big Tech. The proposals, which included regulating patents used in technologies like telecom equipment, mobile phones, and smart devices, were aimed at ending costly litigation.
The AI Liability Directive, proposed in 2022, would have allowed consumers to sue for compensation for harm due to the fault or omission of a provider, developer, or user of AI technology. However, the directive faced pushback from EU authorities concerned about overlapping regulations with existing laws.
The Commission cited a lack of foreseeable agreement among EU lawmakers and countries and will assess whether to introduce new proposals. Industry stakeholders have reacted with mixed views, with some welcoming the move and others expressing concerns over regulatory clarity.
Some lawmakers have criticized the decision, calling it a "strategic mistake" and emphasizing the need for consumer protection from harm caused by AI systems. Others have defended the Commission's decision, arguing that the AI Act should be fully operational before new liability regulations are introduced.
