The European Commission is considering to moderate its landmark AI laws following reported pressure from U.S. tech companies and the Trump administration.

As reported by the Financial Times, the proposed changes include watering down part of the European Union’s (EU) digital rule book, including its AI Act, in a bid to simplify EU legislation and reduce administrative burdens on European companies.

However, during a press briefing on Tuesday, Commission spokesperson Thomas Regnier, said: “Let me be extremely clear about one point: the U.S. will not decide on our simplification agenda. It's our sovereign right to legislate.

"We're not backing away from our digital legislation, and also from the AI Act. We do this in complete independence. It's our sovereign right to legislate, and we're not sitting around the table with the U.S. or with U.S. companies and big tech to elaborate our legislation.”

Paula Pinho, chief spokesperson of the European Commission, added: “Stakeholders, knowing that we are preparing such legislation, show their interest and share their points of view. That's part of the preparation of any legislative proposal. To what extent those are taken on board, then it's a different question.”

According to an interview with an unnamed senior EU official by the FT, the EU was in talks with the Trump administration about tweaks to the AI Act and other digital regulations as part of its streamlining process.

The development follows the European Commission’s continued efforts to simplify its data, cybersecurity, and AI legislation after it opened a call for evidence in September, urging the public to assist with research and best practices.

This so-called simplification agenda aims to streamline EU legislation to boost competitiveness and reduce administrative burdens on EU companies while upholding standards and maintaining values.

Tech giants such as Meta and Alphabet have previously contested the EU’s regulation of AI for restricting the continent from accessing new and innovative services.

Potential changes to the AI Act

The AI Act bans risk systems deemed "unacceptable" such as social scoring, and imposes strict requirements on high-risk areas including healthcare, employment, and policing.

The regulations apply to companies within the EU and any company offering AI products or services to Europeans. It mandates rigorous transparency standards for international companies and penalizes breaches with substantial fines.

According to draft legislation seen by the FT, providers of generative AI systems already on the market before the implementation date could secure a one-year grace period to adapt their practices without disrupting the market.

The Commission is also planning a delay in imposing fines for violations of the updated AI transparency rules until August 2027 to "provide sufficient time for adaptation of providers and deployers of AI systems."

The draft document also considers taking away the compliance burden for companies and centralizing enforcement through its own AI office.

The EC has previously rejected calls from major tech companies to pause the EU AI Act, as several big-name firms, including ASML, Mercedes-Benz, and United Internet, have argued it adds complexity that would hinder continental AI development.