Europe Is Yielding to the US on Technology Regulations

Nearly everything is on pause. The EU AI Act, Digital Services Act, and Digital Markets Act are all under threat. The European Commission is set to conclude the year with minimal progress on its key tech policy initiatives, with many measures at risk of being rolled back.

Specifically, a range of changes could undermine the integrity of the EU AI Act, potentially diluting its core components. There may also be significant reassessments of the Digital Services Act and Digital Markets Act. Furthermore, the Digital Networks Act and the EU Space Act are already embroiled in legal challenges even before their rollout. Since the tariff agreement between the U.S. and Europe was signed last August, major tech companies, supported by the Trump administration, have intensified their efforts to ease restrictions across the board.

Possible Delay of the AI Act

Europe’s pivotal artificial intelligence legislation is set to be implemented in August 2024, but full compliance is expected by August 2027, with a crucial milestone in 2026. According to the Financial Times, the initial review of potential amendments could occur toward the end of 2026 as part of a broader Digital Omnibus package aimed at streamlining regulations.

At a daily press briefing on November 7, Thomas Regnier, spokesperson for the European Commission for Digital Sovereignty, acknowledged rising concerns. “There’s a lot happening in the realm of artificial intelligence. Standards are falling behind, and both industry and member states have expressed concerns,” he stated. “In this context, we have a ‘digital omnibus’ on the horizon, which could adequately address some of these issues. However, no definitive decision has been made yet.”

The most substantial change would involve delaying the enforcement of penalties for breaches of the new rules by one year—from August 2026 to August 2027—to “provide ample time for AI system providers and users to adapt.”

Challenges in the Telecom Sector

The Digital Networks Act was expected by the year’s end, but the EU Commission is currently stalling. Discussions on the act won’t resume until late January 2026, assuming a consensus can be reached. Significant disagreements persist among member states, particularly regarding two key issues: the shutdown of copper networks and the fortification of BEREC, the European regulatory authority.

Germany has reportedly rejected the proposed 2030 deadline for phasing out copper networks, deeming it too premature. As for strengthening BEREC, many national authorities have hesitated, citing market condition disparities as their rationale. In reality, this pushback likely stems from concerns about losing influence and authority within their nations. In essence, the vision for a unified telecom market is fading. The revision of net neutrality rules has been removed from the current draft of the Digital Networks Act, while the effort to realign market conditions between telecoms and big tech remains vague.

Constraints in Space Policies

The United States has officially opposed the EU Space Act, describing Europe’s proposal as untenable due to its restrictions on American companies. In a 13-page document responding to a public consultation launched by the European Commission in July, the U.S. State Department outlined sections that would require revisions for Europe to avoid responses for failing to uphold the commitments in the tariff agreement. “The current draft of the EU Space Act undermines the intent of the agreement,” the State Department asserted, urging Europe to “facilitate smoother cooperation with the U.S. government and industry instead of imposing additional barriers.”

Resistance from American Tech Giants

The European Commission continues to reach out to American tech giants, urging them to adhere to the Digital Services Act (DSA) and the Digital Markets Act (DMA). However, with persistent appeals from the concerned parties, the timelines are becoming increasingly protracted.

Apple and Google have recently voiced strong opposition to the DMA, highlighting the escalating tensions in negotiations with Europe. Last August, the Federal Trade Commission cautioned that certain DSA provisions could conflict with American laws, particularly those concerning freedom of expression and citizen safety.

Industry Fragmentation

The U.S. State Department has reportedly lobbied on behalf of the Wi-Fi industry, which includes major American enterprises like Apple, Broadcom, Cisco, and Qualcomm, to safeguard a specific mobile spectrum band. Per the MLex news outlet, the Radio Spectrum Policy Group (RSPG), which assists the European Commission in formulating radio spectrum policies, has proposed a compromise regarding the upper 6-GHz band in favor of the mobile sector.

The U.S. State Department is believed to have urged member states to allocate nearly half of the band for Wi-Fi applications, especially for high-speed, low-latency uses like virtual reality and cloud gaming. According to MLex, 13 out of 27 countries sided with the mobile operators, while others abstained. Regardless, EU nations can alter the policy, as the RSPG only provides recommendations, not obligatory decisions. The final decision rests with the European Commission.

This story originally appeared on WIRED Italia and has been translated from Italian.