In recent years the European Union has positioned itself as the world’s foremost digital regulator. From the introduction of the GDPR to the enactment of the Digital Markets Act and the Digital Services Act, the EU has steadily expanded its influence over global digital governance. This phenomenon, often referred to as the “Brussels Effect”, reflects Europe’s ability to shape international regulatory standards beyond its borders.
Recent developments concerning the EU Artificial Intelligence Act (“AI Act”), however, suggest that this regulatory model is now facing significant pressure.
On the 7th of May 2026, Council presidency and European Parliament negotiators reached a provisional agreement on a proposal to streamline certain rules to dilute and delay key portions of the AI Act, particularly those concerning “high-risk” AI systems. The move follows sustained pressure from European industry leaders, who argued that excessive compliance obligations and overlapping regulatory
