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Wall Street JournalFEB 14
European Commission Withdraws AI Liability Directive
Above: Ursula von der Leyen, President of the European Commission (EC), speaks at the AI Action Summit in Paris, France, on Feb. 11, 2025. Image copyright: Nathan Laine/Bloomberg via Getty Images
The Facts
The European Commission (EC) has withdrawn the AI Liability Directive from its 2025 work programme, citing "no foreseeable agreement" on the law, and stating it will "assess" whether a new approach or proposal should be taken.
The directive, proposed in September 2022 following both an AI white paper and a European Parliament request in 2020, aimed to establish uniform rules for non-contractual civil liability involving AI systems, and to make it easier for victims to claim compensation for AI-related damages.
The directive would have created a "presumption of causality" mechanism to help victims prove damage caused by AI systems and empowered courts to order the disclosure of evidence concerning high-risk AI systems.
The Spin
Pro-establishment narrative
The decision to withdraw the AI Liability Directive is a pragmatic step that fosters innovation and competitiveness. Rather than bowing to US pressure, the EU aims to support its businesses and to avoid overburdening them with unnecessary red tape. By focusing on streamlining regulations, Europe is ensuring its companies can remain competitive in the global AI race while maintaining essential protections. This approach balances fostering AI development with safeguarding core European values.
Establishment-critical narrative
The EC's decision to drop the AI Liability Directive is a strategic misstep, driven by political agenda rather than legal reasoning. The move leaves a critical gap in AI regulation, with 27 different national legal systems now determining liability — a fragmented and chaotic approach that favors Big Tech over startups and SMEs. The push to simplify rules to "win" the AI race sacrifices essential protections for consumers, risking unchecked AI development in Europe.