EU Shifts Focus to AI Competitiveness, Abandoning ePrivacy and AI Liability Reforms

EU abandons ePrivacy and AI liability reforms, prioritizing AI competitiveness. What does this mean for online privacy and tech regulation?
Matilda
EU Shifts Focus to AI Competitiveness, Abandoning ePrivacy and AI Liability Reforms
The European Union has significantly altered its regulatory course, withdrawing two key legislative proposals: the ePrivacy Regulation and the AI Liability Directive. This decision, revealed in the Commission's 2025 work program, underscores a strategic pivot towards fostering AI competitiveness and innovation within the bloc. The withdrawal of these proposals, particularly the ePrivacy Regulation, marks the end of a years-long struggle to update online tracking rules and brings uncertainty to the future of digital privacy in Europe. The Demise of ePrivacy: A Long and Winding Road The ePrivacy Regulation, initially proposed in 2017, aimed to modernize the existing ePrivacy Directive, strengthening rules around online tracking technologies and aligning penalties with the General Data Protection Regulation (GDPR). However, the proposal faced intense lobbying from tech giants and telecommunication companies, leading to years of deadlock among EU co-legislators. Documents unearthed dur…