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Europe Is Bending the Knee to the US on Tech Policy

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Almost everything is on hiatus. The EU AI Act, Digital Services Act, and Digital Markets Act are all at risk. The European Commission is preparing to end the year with virtually no movement on its most important tech policy initiatives. Many measures may even be reversed.

In particular, a series of changes threatens to weaken the entire framework of the EU AI Act by eroding its substance. There could also be major reconsiderations of the Digital Services Act and Digital Markets Act. Not to mention the Digital Networks Act and the EU Space Act, before they even see the light of day, are already the subject of legal disputes. Since the tariff agreement between the United States and Europe was signed last August, big tech companies, backed by the Trump administration, have increased pressure to soften restrictions on all fronts.

Possible AI Act Delay

Europe's landmark artificial intelligence law went into effect in August 2024, but the deadline for full implementation is set for August 2027, with an important intermediate milestone in 2026. According to the Financial Times, the first review of possible amendments could take place toward the end of 2026 as part of a broader Digital Omnibus package, which aims to simplify guidelines.

At a daily press briefing on November 7, Thomas Regnier, the spokesman for the European Commission for Digital Sovereignty, acknowledged mounting concerns. “A lot is happening in the field of artificial intelligence. Standards are lagging. There are concerns from industry and member states," he said. “In this context, we have a ‘digital omnibus’ coming, and that would be the appropriate framework to address some of these concerns. But no decision has been made yet.”

The most significant change would involve postponing by one year—from August 2026 to August 2027—the application of penalties for violations of the new rules in order to “grant sufficient time for providers and users of AI systems to comply.”

The Telecom Industry Frays

The Digital Networks Act had been promised by the end of the year, but the EU Commission is stalling. The act won't be discussed again until late January 2026, assuming an agreement can be reached. There are too many differences of opinion among member states, particularly on two issues: shutting down copper networks and strengthening BEREC, the European regulatory authority.

On the issue of shutting down copper networks, Germany reportedly said no to the proposed 2030 deadline, which it considered too soon. Regarding the strengthening of BEREC, many national authorities have balked, citing differences in market conditions as their official rationale. In reality, the pushback is likely due to fears of losing influence and power in their respective countries. In short, the single telecom market project is slipping away. The revision of net neutrality rules has disappeared from the version of the Digital Networks Act currently being worked on, while the initiative to rebalance market conditions between telecoms and big tech companies is ill-defined.

Space Is Not Limitless

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