Europe

Letter Demands New EU AI Liability Rules After Directive Cut

APR 7 2025·Updated APR 8 2025

Story

Above: European Union (EU) Commission President Ursula von der Leyen speaks during a joint press conference, held with Norwegian Prime Minister Jonas Gahr Store, in Brussels, Belgium, on April 7, 2025. Image credit: Dursun Aydemir/Contributor/Anadolu via Getty Images

The Facts

A coalition of six civil society organizations, including BEUC, Article 19, and Mozilla, addressed an open letter Monday to EU Tech Commissioner Henna Virkkunen and Consumer Affairs Commissioner Michael McGrath, urging immediate work on new AI liability regulations.
BEUC
MSN
This comes after the European Commission (EC) announced in February the withdrawal of the Artificial Intelligence Liability Directive (AILD) from its work program, citing "no foreseeable agreement" on the proposal that was originally introduced in 2022.
Euractiv
EuroNews
The letter claims that the existing Product Liability Directive (PLD), while applicable to AI systems, contains significant "legal gaps" in coverage, particularly regarding claims against AI system deployers such as banks, insurance companies, or public institutions.
BEUC
Current legal frameworks, they allege, make it challenging for individuals to prove harm caused by AI systems, such as cases of discrimination by insurance companies or unjustified denial of welfare benefits.
Euractiv
BEUC
It further argues that the absence of harmonized EU-wide AI liability rules creates an uneven landscape, where compensation possibilities vary significantly between Member States, affecting both consumers and businesses.
EuroNews
Center for Democracy and Technology
The European Commission plans to officially withdraw the directive by August 2025, with Commissioner Virkkunen scheduled to discuss the matter with the Legal Affairs Committee on April 9.
Euractiv
EuroNews

Sources Split

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The Spin

Techno-skeptic narrative

This letter must be taken seriously. The AI Act's implementation is faltering and threatens total inefficacy, from Germany's coalition disputes and Big Tech lobbying to a weakened Code of Practice. Members of the European Parliament and subject matter experts warn that diluting rules risks democracy, human rights, and safety. AI-driven discrimination, election interference, and privacy violations are already evident in major AI models, and must be mitigated against now.

Artificialintelligenceact

Techno-optimist narrative

The EC's decision to scrap the AILD was the right move. It adds redundant complexity to a robust legal landscape, including the new Product Liability Directive and AI Act. Its vague benefits also stifle innovation, raise costs, and undermine EU competitiveness. Existing frameworks and contractual practices are more than enough, aligning with the Draghi Report's call for regulatory simplification to boost AI development.