EU Enforces AI Accountability and Proposes E-Commerce Liability Rules

The EU's first AI Act compliance deadline and proposed reforms target unsafe AI practices and illegal imports, setting a global regulatory precedent.

The EU's AI Act, effective since August 2024, reached its first compliance deadline on February 2, 2025, categorizing AI risks into four levels and banning 'unacceptable risk' systems.
AI technologies deemed unsafe, including systems that manipulate, exploit vulnerabilities, or engage in social scoring, face severe penalties, such as fines up to $36 million or 7% of annual revenue.
Proposed EU reforms aim to hold e-commerce platforms like Amazon, Shein, and Temu accountable for illegal or dangerous products sold online, shifting liability from consumers to platforms.
The regulations reflect a stark contrast to the U.S., where the Trump administration has prioritized AI innovation with minimal regulatory oversight, including the rescission of a Biden-era AI safety executive order.
The EU's regulatory efforts coincide with the rise of China's DeepSeek AI, intensifying global competition and prompting calls for ethical AI development and transparency from tech companies.