Europe denies dropping AI liability rules under pressure from Trump

The European Union has denied that recent moves to row back on some planned tech regulation — principally by ditching the AI Liability Directive, a 2022 draft law which had been aimed at making it easier for consumers to sue over harms caused by AI-enabled products and services — were made in response to pressure from the Trump administration to deregulate around AI.

In an interview with the Financial Times on Friday, Henna Virkkunen, the EU’s digital chief, claimed the AI liability proposal was being scrapped because the bloc wanted to focus on boosting competitiveness by cutting bureaucracy and red tape.

An upcoming code of practice on AI — attached to the EU’s AI Act — would also limit reporting requirements to what’s included in existing AI rules, she said.

On Tuesday, U.S. vice president JD Vance warned European legislators to think again when it comes to technology rule-making — urging the bloc to join it in leaning into the “AI opportunity,” via a speech at the Paris AI Action Summit.

The Commission published its 2025 work program the day after Vance’s speech — touting a “bolder, simpler, faster” Union. The document confirmed the demise of the AI liability proposal, while simultaneously setting out plans aimed at stoking regional AI development and adoption.