Jd Vance Artificial Intelligence Tech Companies Europe Regulation 3E09Def
Wall Street JournalFEB 18
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 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.