The European Commission will decide by August whether to scrap its proposed AI Liability Directive, which aimed to create a streamlined process for consumers seeking compensation from harm caused by AI products or services. Originally proposed in 2022, the directive has faced delays due to disagreements over its feasibility.
The Commission’s February 2025 work program indicated that there is “no foreseeable agreement” on the proposal. This has led to questions about whether the rules are necessary or if existing laws already provide adequate consumer protection.
Mixed Reactions in the European Parliament
The proposal has sparked division in the European Parliament. Axel Voss, a German MEP in charge of guiding the directive, called the Commission’s move a “strategic mistake,” emphasizing that the rules were needed for consumer protection. However, Kosma Złotowski, a Polish MEP, argued that the directive is unnecessary, citing existing laws such as the Product Liability Rules and the AI Act.
Commission Open to Future Discussions
The European Commission has left the door open for reconsideration, stating that further dialogue with the European Parliament and member states could lead to a revised proposal. EU Tech Commissioner Henna Virkkunen is scheduled to meet with the Legal Affairs Committee on April 9, 2025, to discuss the matter further.
If the proposal is withdrawn, the Commission has six months to make an official decision on its future.
As AI technology advances, the debate over regulation and consumer protection is expected to continue, with major implications for the future of AI governance in the EU.