Business

EU delays AI Act enforcement to boost digital competitiveness amid regulatory concerns

Wednesday, 19 November 2025 4:56PM UTC

The European Commission has proposed postponing the enforcement of its AI Act and other key digital regulations, aiming to ease compliance burdens but raising fears over consumer protections and regulatory effectiveness.

The European Commission has unveiled its "Digital Omnibus," a comprehensive plan aimed at simplifying the European Union's extensive digital regulatory framework. Central to this initiative is a proposed delay in the full enforcement of the AI Act, which was adopted last year to regulate artificial intelligence technologies in the bloc. The original timeline set the implementation of stringent rules for "high-risk" AI systems, those used in sensitive areas like analysing CVs, assessing loan applications, or evaluating school exams, for August 2026. However, the Omnibus now proposes postponing these provisions until December 2027, extending the timeline by over a year.

This delay is intended to give businesses and organisations additional time to adapt to the complex new regulations, particularly as many EU member states have lagged in establishing the necessary enforcement structures. Hanane Taidi, Director General of TIC Council, pointed out that many member states missed the August 2025 deadline to designate competent authorities responsible for overseeing compliance. Without these national bodies in place, conformity assessment cannot be fully operational, impeding the AI Act’s effectiveness.

The postponement forms part of the Commission’s broader goal to simplify digital laws and reduce bureaucratic barriers. France and Germany have welcomed the simplification effort, viewing it as a means to foster competitiveness and digital innovation within Europe. The Digital Omnibus also plans revisions to other key legislations, including the General Data Protection Regulation (GDPR), the Data Act, and the e-Privacy Directive, signalling a wide-ranging regulatory recalibration.

Despite the official position that this delay does not signify weaker AI safeguards, some critics see it differently. Peter Norwood, a senior research officer at Finance Watch, characterised the move as a "deregulate to accelerate" strategy, warning that consumers might ultimately bear the cost. He highlighted risks such as AI models making biased decisions affecting loan approvals or insurance premiums without the knowledge or consent of the individuals involved. Agustín Reyna, Director General of the European Consumer Organisation BEUC, echoed this concern, arguing that the proposal disproportionately benefits Big Tech by reducing consumer protections under the guise of simplification. “Instead of cutting down on consumer rights, the European legislator should focus on making compliance easier to the benefit of European companies and consumers alike,” he said.

The proposal has received mixed reactions in the tech industry. The Computer & Communications Industry Association (CCIA), representing major players like Amazon, Apple, Google, and Uber, welcomed the delay but called for even "bolder" reforms. The group criticised the Digital Omnibus for not addressing what it sees as outdated thresholds for identifying AI models that pose systemic risks and problematic wording related to copyright extraterritoriality, which they claim conflicts with EU and international principles.

Implementation challenges remain a significant concern. The delay underscores the difficulties in setting up the technical standards and regulatory frameworks required for the AI Act's smooth enforcement. The European Commission stressed that the postponement is meant to prevent premature, burdensome compliance before these essential support tools and guidelines are fully developed. Regulatory and legal experts have also highlighted that the Omnibus package sidesteps some traditional legislative impact assessments and consultations, which may fuel resistance among Members of the European Parliament (MEPs), particularly as some AI Act provisions and data protections were only recently adopted.

Moreover, the pause affects high-risk AI regulations across various domains beyond financial services, including biometric identification, healthcare, and law enforcement. This broad impact indicates the Commission's delicate balancing act between fostering innovation and safeguarding fundamental rights in the rapidly evolving digital landscape.

The Digital Omnibus initiative, set to be implemented by the end of 2025 if approved, reflects the EU’s evolving approach to regulating cutting-edge technologies. While aiming for legal clarity and reduced compliance burdens for businesses, particularly small and medium enterprises, the move also reopens debates about the pace of AI regulation and the adequacy of consumer protections within Europe’s digital strategy.

📌 Reference Map:

^[1] (Yahoo News Australia) - Paragraphs 1, 2, 4, 5, 6, 8, 9, 10
^[2] (Anadolu Agency) - Paragraph 3
^[3] (Reuters) - Paragraphs 3, 7, 8
^[4] (Euronews) - Paragraph 3
^[5] (Euronews) - Paragraph 6
^[6] (Euronews) - Paragraph 7
^[7] (Integrin) - Paragraph 6

Source: Noah Wire Services

More on this

https://au.news.yahoo.com/european-commission-proposes-delaying-full-163302101.html - Please view link - unable to able to access data
https://www.aa.com.tr/en/europe/eu-delays-implementation-of-ai-acts-rules-for-high-risk-systems-until-late-2027/3748322 - The European Commission has announced a delay in implementing the AI Act's rules for high-risk systems until the end of 2027. This decision aims to ensure that essential support tools, such as standards and guidelines, are in place before these obligations take effect. The delay is part of a broader 'Digital Omnibus' proposal intended to simplify the EU's digital regulatory framework. The Commission emphasizes that this postponement is not a step back from Europe's strict AI safeguards but a measure to prevent burdensome compliance before necessary support tools are finalized.
https://www.reuters.com/sustainability/boards-policy-regulation/eu-delay-high-risk-ai-rules-until-2027-after-big-tech-pushback-2025-11-19/ - The European Commission has proposed delaying the implementation of stricter AI regulations for 'high-risk' applications under the AI Act to December 2027, from the previously scheduled August 2026. This move is part of a broader effort to streamline digital regulations and reduce bureaucratic red tape, following pushback from Big Tech and pressure to enhance Europe's economic competitiveness. The delay impacts regulations covering biometric identification, job applications, healthcare, credit assessments, and law enforcement. The new proposal, termed the 'Digital Omnibus,' also includes revisions to major digital laws like the GDPR, the Data Act, and the e-Privacy Directive.
https://www.euronews.com/my-europe/2025/11/18/france-germany-support-simplification-push-for-digital-rules-as-commission-preps-revision- - The European Commission, supported by France and Germany, is preparing a digital simplification plan aimed at reducing bureaucracy and enhancing Europe's competitiveness in digital innovation. The proposal includes amending the rules on data protection and the recently adopted AI Act. According to a draft version, the rules for 'high-risk AI systems,' which were originally scheduled to take effect in August 2026, are now expected to be delayed until December 2027. The Commission cites difficulties in establishing the necessary standards as the reason for the postponement.
https://www.euronews.com/my-europe/2025/11/12/eu-tech-chief-eyes-ai-act-amendments-to-create-legal-certainty - The European Commission is planning 'targeted amendments' to the bloc’s artificial intelligence rulebook, the AI Act, to create legal certainty for industries. The amendments are part of a broader digital simplification package, known as the 'Digital Omnibus,' set to be presented on 19 November. The Commission acknowledges challenges in implementing the AI Act, particularly due to the lack of technical standards, and aims to support industries by providing clarity and reducing compliance burdens.
https://www.euronews.com/next/2025/09/22/eu-commission-rebuffs-calls-to-press-pause-on-ai-act - The European Commission has confirmed that the implementation of the EU's new AI regulations will proceed as scheduled, despite calls from some companies and countries for a pause. Commission spokesperson Thomas Regnier emphasized that there will be no pause, grace period, or halt, highlighting that the law's deadlines are legally binding. The Commission plans to propose steps to simplify its digital rules towards the end of the year, such as cutting back on reporting obligations for small companies.
https://www.integrin.dk/2025/07/22/european-digital-omnibus-is-to-be-implemented-by-the-end-of-2025/ - The European Commission is set to implement the 'Digital Omnibus' by the end of 2025. This package aims to simplify digital regulations, including the AI Act, to support innovation and reduce burdens for businesses, especially SMEs. The Commission has recognized the need for a one-year grace period for the AI Act, during which companies will not be penalized for non-compliance, allowing them to act in good faith while ensuring full compliance.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: The narrative is current, with the earliest known publication date being November 19, 2025. The report is based on a recent press release from the European Commission, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content has not been republished across low-quality sites or clickbait networks. No earlier versions show different figures, dates, or quotes. The article includes updated data and does not recycle older material.

Quotes check

Score: 10

Notes: The direct quotes from Hanane Taidi, Director General of TIC Council, and Agustín Reyna, Director General of the European Consumer Organisation BEUC, are unique to this report. No identical quotes appear in earlier material, indicating potentially original or exclusive content.

Source reliability

Score: 10

Notes: The narrative originates from Yahoo News Australia, a reputable news outlet. The report is based on a recent press release from the European Commission, which typically warrants a high reliability score.

Plausability check

Score: 10

Notes: The claims made in the narrative are plausible and consistent with recent developments in EU digital regulations. The delay in the AI Act's enforcement aligns with the European Commission's recent proposals to streamline digital regulations. The narrative includes specific factual anchors, such as names, institutions, and dates, enhancing its credibility. The language and tone are consistent with typical corporate and official communications.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is current, based on a recent press release from the European Commission, and includes unique quotes from reputable sources. The claims are plausible and consistent with recent developments in EU digital regulations. The source is reliable, and the content is original and not recycled. No discrepancies or signs of disinformation were found.

European Union
AI regulation
Digital Omnibus