EU “simplifies” AI regulation - New proposal favors US tech companies

The European Union has unveiled new proposals to simplify regulations on artificial intelligence and privacy. The measures have drawn criticism from the tech sector for a lack of ambition and from consumer groups for pandering to the interests of big tech companies.
The European Commission's "Digital Omnibus", which will be discussed and voted on by member states, proposes postponing stricter rules on the use of technology in "high-risk" areas until the end of 2027 and allowing for wider use of data.
Europe is trying to find a balance between strong regulations and competitiveness in the global technology race, where companies in the United States and Asia are advancing rapidly in the fields of artificial intelligence and chips.
"So far, Europe has not fully benefited from the digital revolution. And we cannot afford to fail to follow the demands of a changing world," said a senior Commission official.
The proposal foresees that the stricter rules will be postponed from August 2026 to December 2027 for use in sensitive areas such as biometric identification, service provision, healthcare, credit assessment and law enforcement.
The commission aims to clarify when data ceases to be “personal” under privacy law. The proposed changes would also allow companies like Google, Meta, OpenAI and others to use Europeans’ personal data to train artificial intelligence models. Many companies, including Siemens and SAP in Europe, have called for the rules to be revised to make them easier to enforce.
Recently, the Trump administration has criticized EU regulations, saying they target American companies, accusations that the Commission has rejected.
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