European Commission Scraps Draft Rules on Tech Patents, AI Liability, and Online Privacy

European Commission Abandons Key Tech Regulations

In a surprising move, the European Commission (EC) has withdrawn three significant draft rules that would have regulated technology patents, artificial intelligence (AI) liability, and consumer privacy on messaging apps. The decision, announced in the EC's 2025 work programme, comes after intense lobbying from industries and Big Tech companies 1

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Standard Essential Patents Regulation Scrapped

One of the withdrawn proposals aimed to regulate standard essential patents (SEPs) used in various technologies, including telecom equipment, mobile phones, computers, connected cars, and smart devices. The rule was proposed two years ago to address costly and lengthy litigation in the tech industry 1

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This decision has drawn mixed reactions from industry players. Nokia, along with Ericsson and Siemens, who had opposed the draft rules, welcomed the move. Nokia stated, "It would have had an adverse impact on the global innovation ecosystem, in particular the incentives for European companies to invest billions of euros each year in R&D" 1

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On the other hand, the Fair Standards Alliance, representing companies like BMW, Tesla, Google, and Amazon, expressed shock at the Commission's decision, arguing that "The withdrawal sends a terrible signal to innovative businesses who rely on a predictable and fair SEP licensing system" 1

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AI Liability Directive Withdrawn

The EC also abandoned the AI Liability Directive, proposed in 2022, which would have allowed consumers to sue for compensation for harm caused by the fault or omission of AI technology providers, developers, or users 1

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Despite this withdrawal, experts caution against assuming a change in the EC's overall direction on AI regulation. Rod Freeman, head of Cooley's global products practice, noted, "We have ground-breaking new laws on the books now in Europe governing AI, the impact of which we are still yet to see" 1

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E-Privacy Regulation Shelved

The third withdrawn proposal, known as the e-privacy regulation, would have subjected messaging apps like WhatsApp and Skype to the same stringent privacy rules as telecom providers. This regulation, dating back to 2017, had been in limbo since 2020 due to disagreements between EU countries on rules for tracking users' online activities and provisions for detecting and deleting child pornography 1

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Implications and Future Directions

The EC cited the lack of foreseeable agreement from co-legislators as the primary reason for withdrawing these proposals. For each withdrawn rule, the Commission stated it would assess whether to table another proposal or choose a different approach 2

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Ursula von der Leyen, president of the EC, emphasized the need for simplification, 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" 2

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These developments come at a time of potential shifts in EU regulatory priorities. With the upcoming change in U.S. leadership and the recent stepping down of two top EU regulators, experts speculate on possible changes in the organization's political priorities, although new rules introduced in the past five years will still require enforcement 2

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