Europe Is Bending the Knee to the US on Tech Policy

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

The United States has officially spoken out against the EU Space Act, declaring Europe’s proposal unacceptable as it would hinder American companies by restricting their scope of operations. In a 13-page document responding to the public consultation launched in July by the European Commission, the US State Department listed all the sections that would need to be revised for Europe to avoid retaliation for failing to meet the commitments made in the framework agreement on tariffs. “The current draft of the EU Space Act contradicts the spirit of the agreement,” the State Department wrote flatly, calling on Europe to “allow for smoother cooperation with the U.S. government and industry rather than introduce additional barriers to cooperation.”

American Tech Giants Resist DSA and DMA

The European Commission continues to send letters to American tech giants calling on them to comply with the Digital Services Act (DSA) and the Digital Markets Act (DMA). But with a barrage of appeals from the parties involved, timelines are becoming extremely drawn out.

Apple and Google have sharply criticized the DMA in recent weeks, underscoring how strained the negotiations with Europe are becoming. Last August, the Federal Trade Commission warned that certain DSA rules might conflict with American laws, particularly regarding freedom of expression and the security of United States citizens.

Breaking Up the Band

The US State Department reportedly lobbied on behalf of the Wi-Fi industry, which includes major American companies like Apple, Broadcom, Cisco and Qualcomm, to protect a specific band of the mobile spectrum. According to the MLex news outlet, the Radio Spectrum Policy Group (RSPG), which assists the European Commission in developing radio spectrum policy, has proposed a compromise on the use of the upper 6 GHz band in favor of the mobile phone industry.

The US State Department reportedly urged member states to reserve nearly half of the band for Wi-Fi services, specifically for high-speed, low-latency applications such as virtual reality and cloud gaming. According to MLex, 13 out of 27 countries including Italy sided with the mobile operators, while the others abstained. In any case, EU countries can change the policy since the RSPG only issues recommendations, not binding decisions. For a final decision, the ball is in the European Commission’s court.

This story originally appeared on WIRED Italia and has been translated from Italian.