EU Bows to Pressure on Loosening AI, Privacy Rules

Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File
Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File
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EU Bows to Pressure on Loosening AI, Privacy Rules

Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File
Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File

The European Union is set next week to kickstart a rollback of landmark rules on artificial intelligence and data protection that face powerful pushback on both sides of the Atlantic.

Part of a bid to slash red tape for European businesses struggling against US and Chinese rivals, the move is drawing accusations that Brussels is putting competitiveness ahead of citizens' privacy and protection, AFP said.

Brussels denies that pressure from the US administration influenced its push to "simplify" the bloc's digital rules, which have drawn the wrath of President Donald Trump and American tech giants.

But the European Commission says it has heard the concerns of EU firms and wants to make it easier for them to access users' data for AI development -- a move critics attack as a threat to privacy.

One planned change could unite many Europeans in relief however: the EU wants to get rid of those pesky cookie banners seeking users' consent for tracking on websites.

According to EU officials and draft documents seen by AFP, which could change before the November 19 announcement, the European Commission will propose:

-- a one-year pause in the implementation of parts of its AI law

-- overhauling its flagship data protection rules, which privacy defenders say will make it easier for US Big Tech to "suck up Europeans' personal data".

The bloc's cornerstone General Data Protection Regulation (GDPR) enshrined users' privacy from 2018 and influenced standards around the world.

The EU says it is only proposing technical changes to streamline the rules, but rights activists and EU lawmakers paint a different picture.

The EU executive proposes to narrow the definition of personal data, and allow companies to process such data to train AI models "for purposes of a legitimate interest", a draft document shows.

Reaction to the leaks has been swift -- and strong.

"Unless the European Commission changes course, this would be the biggest rollback of digital fundamental rights in EU history," 127 groups, including civil society organizations and trade unions, wrote in a letter on Thursday.

Online privacy activist Max Schrems warned the proposals "would be a massive downgrading of Europeans' privacy" if they stay the same.

An EU official told AFP that Brussels is also expected to propose a one-year delay on implementing many provisions on high-risk AI, for example, models that can pose dangers to safety, health or citizens' fundamental rights.

Instead of taking effect next year, they would apply from 2027.

This move comes after heavy pressure from European businesses and US Big Tech.

Dozens of Europe's biggest companies, including France's Airbus and Germany's Lufthansa and Mercedes-Benz, called for a pause in July on the AI law which they warn risks stifling innovation.

Commission president Ursula von der Leyen faces a battle ahead as the changes will need the approval of both the EU parliament and member states.

Her conservative camp's main coalition allies have raised the alarm, with the socialists saying they oppose any delay to the AI law, and the centrists warning they would stand firm against any changes that undermine privacy.

Noyb, a campaign group founded by Schrems, published a scathing takedown of the EU's plans for the GDPR and what they entail.

The EU has pushed back against claims that Brussels will reduce privacy.

"I can confirm 100 percent that the objective... is not to lower the high privacy standards we have for our citizens," EU spokesman for digital affairs, Thomas Regnier, said.

But there are fears that more changes to digital rules are on the way.

The proposals are part of the EU executive's so-called simplification packages to remove what they describe as administrative burdens.

Brussels rejects any influence from Trump -- despite sustained pressure since the first weeks of the new US administration, when Vice President JD Vance railed against the "excessive regulation" of AI.

This "started before the mandate of the president of the US", chief commission spokeswoman Paula Pinho said this week.

Calls for changes to AI and data rules have been growing louder in Europe.

A major report last year by Italian ex-premier Mario Draghi also warned that data rules could hamper European businesses' AI innovation.



UK's Nothing Splashes Color on New Phones to Shake Up 'Boring' Tech

Carl Pei, CEO of Nothing, poses for pictures at Nothing headquarters in Kings Cross, in London, Britain, February 26, 2026. REUTERS/Jaimi Joy
Carl Pei, CEO of Nothing, poses for pictures at Nothing headquarters in Kings Cross, in London, Britain, February 26, 2026. REUTERS/Jaimi Joy
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UK's Nothing Splashes Color on New Phones to Shake Up 'Boring' Tech

Carl Pei, CEO of Nothing, poses for pictures at Nothing headquarters in Kings Cross, in London, Britain, February 26, 2026. REUTERS/Jaimi Joy
Carl Pei, CEO of Nothing, poses for pictures at Nothing headquarters in Kings Cross, in London, Britain, February 26, 2026. REUTERS/Jaimi Joy

Nothing, the smartphone maker founded in London by Carl Pei, launched new mid-tier handsets and headphones on Thursday, adding new colors to its white, black and grey palette to appeal to digitally adept younger customers.

Pei, a Swedish national who previously co-founded Chinese brand OnePlus, started Nothing in 2020 with the aim of making consumer technology less monotonous. He said smartphones had become "kind of boring", with only incremental improvements in batteries, screens and cameras.

The Phone (4a), available in pink and blue as well as black and white, and Phone (4a) Pro, ⁠available in pink, ⁠black and silver, will retail at 349 pounds or 349 euros, and 499 pounds or 479 euros, respectively.

Both phones feature improved cameras and the company's signature glyph interface, a system of LED lights on the back.

Headphone (a) has up to five days of battery life and integrated physical controls in the ear cups, the company said. It will be available in pink, ⁠yellow, black and white, priced at 149 pounds, $199 and 159 euros.

"We're giving our portfolio a splash of color and secondly we're advancing some of our AI initiatives," Reuters quoted Pei as saying.

"We started Nothing to break that monotony and make tech more fun," he said in an interview.

Nothing's first phone in 2022 stood out in a sea of similar Android devices with its transparent design and distinctive backlit glyph features.

Pei said the company was building scale and capability so it could launch more novel AI-focused products.

"We cannot just create audio products and smartphones because those are basically already solved problems," he ⁠said.

"I think ⁠we need to usher in a new wave of human-computer interaction. That will be the next step for us."

The company, which raised $200 million at a $1.3 billion valuation last year, plans to spin off its India-focused, budget-oriented devices brand called CMF.

Pei said Nothing was considering listing that business, but had not made a firm decision. "India has one of the most active capital markets in the world," he said.

He said Nothing itself would be IPO-ready by the end of 2028, though the target was "more like an internal call to arms to just get our act together, build all the structures we need".

"Whether we pull the trigger or not really depends on the market conditions and our plans at that time," he said.


Google to Open German Center for 'AI Development'

Google has launched a massive AI investment drive in Germany. Tobias SCHWARZ / AFP
Google has launched a massive AI investment drive in Germany. Tobias SCHWARZ / AFP
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Google to Open German Center for 'AI Development'

Google has launched a massive AI investment drive in Germany. Tobias SCHWARZ / AFP
Google has launched a massive AI investment drive in Germany. Tobias SCHWARZ / AFP

Google will open an AI center in Berlin on Thursday, the latest sign of Europe's deepening reliance on US firms in cutting edge technologies despite the continent's stated aim to catch up with its rivals.

Germany's ministry for digital affairs told AFP the center will bring together cloud computing and data infrastructure, "AI development" operations as well as a space for cooperation between start-ups and research centers.

Europe is struggling to gain ground in the battle for AI dominance with the United States and China, which are pumping vast sums into the field and producing the most advanced models underpinning the technology.

The Google project is part of a 5.5 billion euro ($6.4 billion) investment drive into Europe's top economy announced by the US tech titan in November, planned to include a new data center.

The firm said at the time it would renovate its Berlin office to add three floors equipped with meeting rooms, a new conference room and a demo space but made no mention of an AI center in the capital.

Chancellor Friedrich Merz's coalition has signaled it wants to make progress in the area as part of efforts to revive the struggling economy, and there have been a flurry of announcements related to AI recently.

"I want technological leadership to once again become the core of our economic model," said Finance Minister Lars Klingbeil last month at the opening of an industrial AI hub, spearheaded by German telecoms giant Deutsche Telekom and US chip juggernaut Nvidia.

- 'Enormous challenges' -

But while efforts are being made to build up infrastructure and data storage capacities, the "challenges are enormous" for Germany, said Janis Hecker of the digital business association Bitkom.

The government still "underestimates the importance of these technologies for value creation, but also for sovereignty and the defense of our values", he said.

The United States builds more computing capacity each year than Germany has in total, the group says.

According to its calculations, one-thousandth of the proposed central government budget for 2026 is dedicated to AI, and only a fraction of a massive pot of funding to modernize the country's infrastructure is dedicated to cutting-edge technologies.

Against this backdrop, Google's investments in Germany are a "big win", Bitkom believes.

But such investments add to concerns about Europe's technological dependencies on the United States at a time of strained ties under the administration of US President Donald Trump.

Even when American tech giants are not the main players in a project, they often still play a vital role in areas from providing cloud infrastructure to cutting-edge semiconductors.

At a summit on so-called "digital sovereignty" in November, Merz and French President Emmanuel Macron backed the idea of favoring European firms in a bid to develop regional champions.

"Sovereignty does not mean self-sufficiency, but strategic capacity for action," says Barbara Engels of the IW Institute.

She also welcomed Google's projects but said that "we must use this infrastructure while developing our own capabilities".

Antonio Krueger, head of the German Research Centre for Artificial Intelligence (DFKI), believes it makes no sense to try to overtake China and the United States in areas such as producing the most advanced AI models.

Instead, Europe should leverage its advantages in industry, he said, adding that data collected by companies can by use to train smaller AI models to "solve very specific tasks".

In this area, "the race is still wide open," he said.


AI May be Creating Instead of Destroying Jobs for Now, ECB Blog Argues

FILE PHOTO: A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 6, 2025. REUTERS/Jana Rodenbusch/File Photo
FILE PHOTO: A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 6, 2025. REUTERS/Jana Rodenbusch/File Photo
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AI May be Creating Instead of Destroying Jobs for Now, ECB Blog Argues

FILE PHOTO: A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 6, 2025. REUTERS/Jana Rodenbusch/File Photo
FILE PHOTO: A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 6, 2025. REUTERS/Jana Rodenbusch/File Photo

The increasing use of artificial intelligence by firms may be creating some jobs in the euro zone rather than destroying them as many fear, a European Central Bank blog post argued on Wednesday.

Economists have been debating whether AI could put white collar staff out of work, and a recent study by Germany's Ifo Institute found that more than a quarter of German firms expect AI to ⁠lead to job ⁠cuts in the next five years.

But the ECB's own Survey on the Access to Finance of Enterprises found that companies making significant use of AI are more likely to take on additional staff ⁠in the near term.

"In other words, AI-intensive firms tend, on average, to hire rather than fire," the blog post, which is not necessarily the view of the ECB, said.

Firms planning to invest in AI are also more likely to have positive expectations for future employment growth, the blog argued.

"This is true regardless of the level of planned AI investment ⁠and ⁠suggests that a pause in hiring due to investment in AI technology is also unlikely over the next year," the blog, written by two ECB staff economists, said.

However, the outlook may change on the longer horizon, the authors said.

Most of the gloomier surveys cover longer horizons than the ECB's own question and the outlook could change once AI starts to significantly transform production processes.