In a decisive move, the European Commission has withdrawn its plans to regulate technology patents, AI liability, and online privacy, citing a lack of expected approval from EU lawmakers and nations.
The European Commission announced on Wednesday that it is abandoning its draft rules aimed at regulating technology patents, artificial intelligence (AI) liability, and consumer privacy on messaging platforms. This decision comes after it became clear that the proposals wouldn’t gain the necessary support from EU lawmakers and member states. The drafts had been subject to significant lobbying efforts by various industries, including major technology companies.
One of the shelved proposals intended to regulate standard essential patents, crucial for telecom equipment, smartphones, computers, connected cars, and smart devices. This proposal was initially introduced two years ago, aiming to resolve expensive and prolonged legal disputes. The rule sparked controversy between companies like Nokia, Ericsson, and Qualcomm, who hold valuable patents, and entities like car manufacturers, Apple, and Google, which seek to utilize these patents. Nokia, along with Ericsson and Siemens, who opposed the draft regulation, welcomed its cancellation, warning that such rules could negatively impact global innovation and deter European investment in research and development.
The Fair Standards Alliance, including members such as BMW, Tesla, Google, and Amazon, expressed disappointment at the Commission’s withdrawal. The group emphasized that the decision might send a negative message to innovative companies that depend on a fair and predictable SEP licensing system.
Another proposal that has been discarded is the AI Liability Directive, introduced in 2022. This directive aimed to enable consumers to claim compensation for damages caused by the actions or negligence of AI providers, developers, or users. The Commission intends to evaluate if a new proposal should be advanced in the future. Rod Freeman, from Cooley’s global products practice, noted that while the withdrawal of the proposal may not indicate a shift in regulatory policy on AI, Europe already has groundbreaking AI laws that are yet to fully manifest their impact.
Additionally, the Commission has abandoned a plan that would have subjected social media platforms like WhatsApp and Skype to stringent telecom privacy rules. Known as the ePrivacy Regulation, the plan has been stalled since 2020, faced with disagreements among EU countries over cookie-tracking regulations and measures related to the detection and removal of child pornography. The Commission commented that the proposal was outdated due to recent legislative developments, and no agreement is anticipated from co-legislators.
The European Commission’s decision to pull back on these legislative efforts indicates the complex balance between fostering innovation and implementing regulatory safeguards. As the Commission reassesses its approach, industry stakeholders will be closely watching for any new proposals that could shape the future of technology regulation in Europe.
