EU Denies Scrapping AI Liability Regulations Amid Trump Allegations

The European Union has officially withdrawn the proposed AI Liability Directive, which aimed to simplify the process for consumers to seek damages from AI-enabled products. EU digital chief Henna Virkkunen stated that the decision was motivated by a desire to enhance competitiveness and reduce bureaucratic hurdles, not influenced by pressure from the Trump administration. This move has raised concerns among consumer advocacy groups about accountability for damages caused by AI technologies. U.S. Vice President JD Vance recently urged European lawmakers to reconsider their approach to technology regulation, emphasizing the need to embrace the 'AI opportunity.' The Commission's 2025 work program confirmed the cancellation of the directive while promoting regional AI development. Despite the withdrawal, experts believe that the EU will continue to uphold its commitment to regulating AI technologies effectively.