The European Commission has decided to drop the AI Liability Directive from its 2025 work plan. The reason? There was no agreement on how to move forward. But many lawmakers want to keep the proposal alive.
What Happened?
On Tuesday, the European Parliament’s Internal Market and Consumer Protection Committee (IMCO) voted to continue discussions on the AI liability rules. This was despite the Commission’s plan to withdraw it.
The AI Liability Directive was introduced in 2022 alongside the AI Act. The AI Act controls AI based on risk levels. It helps set clear rules for AI systems in the EU. The AI Liability Directive was meant to add more rules for when AI causes harm.
Why Did the Commission Drop It?
Last week, the European Commission presented its 2025 work plan. The plan included removing the AI Liability Directive. It said there was no agreement between lawmakers. But the Commission also said that the EU Council and Parliament could still move forward with the rules if they wanted to.
Even though the Commission wants to drop it, it has not formally withdrawn the proposal.
Divided Opinions in the EU Parliament
Lawmakers do not agree on the future of AI liability rules. Some think the Commission made a mistake. Others believe waiting is better.
Axel Voss, a German Member of the European Parliament (MEP), was not happy with the decision. He called it a “strategic mistake” and said the EU must act now. He thinks the AI Liability Directive is essential for making AI safe and fair.
But Andreas Schwab, another German MEP, supported the delay. He is part of the European People’s Party. Schwab said lawmakers should wait and see how the AI Act works first. He believes the AI Act must be strong and tested before adding more rules.
“We should focus on the AI Act and reassess in two years,” Schwab said.
Concerns From Other Lawmakers
Many center-left MEPs are unhappy with the withdrawal. Marc Angel, a Luxembourg MEP, spoke for Italian MEP Brando Benifei. Benifei is a co-rapporteur of the AI Act. He called the decision disappointing. He said that clear AI liability rules would help protect consumers.
Dutch MEP Kim van Sparrentak from the Greens also criticized the decision. She said it showed a lack of understanding. “This is not about punishing companies,” she said. “It’s about protecting consumers and small businesses.”
Tech Companies and Consumer Groups Disagree
The tech industry and consumer groups have different opinions on the directive. Tech companies say the Product Liability Directive (PLD) already covers AI risks. They believe extra rules are not needed. But consumer groups do not agree. They say existing rules do not cover all AI risks.
A study by the European Parliament’s research service was shared in January. It warned that some AI tools, like large language models, may fall outside current rules. This could lead to problems when AI causes harm. Despite the withdrawal, some lawmakers still want to push forward. Political coordinators from different groups are working to keep the directive alive.
The Commission has not fully closed the door on AI liability rules. But it is unclear if discussions will continue or if new proposals will come later.
The debate highlights a key challenge for the EU. Lawmakers must find a balance between AI innovation and consumer protection.
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