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EU Commission Drops Tech Patent, AI, and Privacy Regulations Amid Legislative Deadlock

By  |  February 12, 2025
Black Box AI

The European Commission has withdrawn a set of proposed regulations addressing technology patents, artificial intelligence (AI), and consumer privacy on messaging platforms, citing a lack of anticipated approval from EU lawmakers and member states. The decision, announced on Wednesday, reflects the intense lobbying pressure from industry stakeholders and major technology firms, per Reuters.

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    Among the scrapped proposals was a rule targeting the regulation of standard essential patents (SEPs) used in telecommunications equipment, mobile phones, computers, connected cars, and smart devices. Initially proposed in 2022, the regulation aimed to streamline licensing processes and mitigate costly legal disputes. However, according to Reuters, the Commission acknowledged in its 2025 work program that there was no clear path to consensus and stated it would reassess the possibility of introducing an alternative proposal.

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    The patent regulation had created a divide between companies that hold valuable SEPs, such as Nokia, Ericsson, and Qualcomm, and firms like Apple, Google, and car manufacturers, which rely on these patents but dispute royalty levels. Nokia, along with Ericsson and Siemens, had opposed the draft regulation and welcomed its withdrawal. “It would have had an adverse impact on the global innovation ecosystem, in particular the incentives for European companies to invest billions of euros each year in R&D,” Nokia said in a statement.

    Related: US and UK Decline to Endorse AI Summit Statement

    Conversely, the Fair Standards Alliance—whose members include BMW, Tesla, Google, and Amazon—expressed disappointment over the decision. “The withdrawal sends a terrible signal to innovative businesses who rely on a predictable and fair SEP licensing system,” the alliance stated, per Reuters.

    Another proposal abandoned by the Commission was the AI Liability Directive, introduced in 2022. This directive aimed to establish consumer rights to seek compensation for damages caused by AI-related faults or omissions by providers, developers, or users. The Commission said it would reassess the need for a revised proposal in the future.

    Despite shelving the directive, experts caution against interpreting this move as a shift in the EU’s AI regulatory stance. “We should not assume this move signals a change in policy direction for the Commission when it comes to the regulation of AI,” said Rod Freeman, head of global products practice at law firm Cooley, per Reuters.

    Source: Reuters