european union

On 19 March 2026, Advocate-General Capeta issued an opinion in the case of Elisa Eesti AS v Estonian Government Security Committee (C-354/24). This case concerned, among other things, whether a 2022 order from the Estonian Government for Elisa Eesti AS—a 5G network operator—to remove Huawei components from its network for national security reasons was subject to EU law, constituted a lawful restriction on the right to offer an electronic communications network, and amounted to a “deprivation of property” requiring compensation. AG Capeta concluded that the relevant Estonian regime was within scope of EU law—specifically the European Electronic Communications Code (“EECC”)—even though that regime allowed for the imposition of orders on electronic communications network (“ECN”) providers for national security reasons. She also concluded that the requirement to obtain prior authorization from the Estonian government for use of network equipment constituted a restriction on the freedom to provide an ECN, but that this could be justified on national security grounds if the decision was based on a genuine risk assessment that meets the requirements for proportionality under EU law. She stated that this determination should be left to the referring court. Finally, she concluded that the Estonian Government’s order did not amount to a “deprivation” of property for which compensation would be required, as it was instead a mere “restriction” on the use of property. Below, we describe these non-binding conclusions in more detail. The Court’s final ruling in this case will have significant implications for the European Commission’s proposed revisions to the EU Cybersecurity Act, which as drafted would—among other things—allow the Commission to require ECN providers to remove and cease using components from designated high-risk jurisdictions in their networks. See our prior blog post on the proposal for a revised Cybersecurity Act here. … Continue Reading CJEU Advocate-General indicates that communications network operators can lawfully be required to remove Chinese components, and that compensation is not required

In June 2025, the European Parliament (“EP”) published its draft report on “Copyright and generative artificial intelligence – opportunities and challenges” (available here). The draft report calls on the European Commission to make a series of changes to the way that copyright is protected in the age of generative AI (“GenAI”). The EP notes the challenges in finding a balance between respecting existing laws and protecting the rights of content creators on the one hand, while not hindering the development of AI technologies in the European Union on the other. In its report, the EP focuses on the perceived copyright-related risks posed at the GenAI training stage and the GenAI output stage.

Continue Reading European Parliament Proposes Changes to Copyright Protection in the Age of Generative AI

On February 20, 2025, the European Commission’s AI Office held a webinar explaining the AI literacy obligation under Article 4 of the EU’s AI Act.  This obligation started to apply on February 2, 2025.  At this webinar, the Commission highlighted the recently published repository of AI literacy practices.  This repository compiles the practices that some AI Pact companies have adopted to ensure a sufficient level of AI literacy in their workforce.  

Continue Reading European Commission Provides Guidance on AI Literacy Requirement under the EU AI Act

On August 22, 2023, the Spanish Council of Ministers approved the Statute of the Spanish Agency for the Supervision of Artificial Intelligence (“AESIA”) thus creating the first AI regulatory body in the EU. The AESIA will start operating from December 2023, in anticipation of the upcoming EU AI Act  (for a summary of the AI Act, see our EMEA Tech Regulation Toolkit). In line with its National Artificial Intelligence Strategy, Spain has been playing an active role in the development of AI initiatives, including a pilot for the EU’s first AI Regulatory Sandbox and guidelines on AI transparency.

Continue Reading Spain Creates AI Regulator to Enforce the AI Act

On 9 October 2023, the European Parliament’s Internal Market and Consumer Protection Committee (IMCO) and Committee on Legal Affairs (JURI) agreed revised wording to amend the European Commission’s (the “EC”) proposed new Product Liability Directive (the “Directive”). The vote was passed with 33 votes in favour to 2 against. If adopted, the Directive will replace the existing (almost 40-year old) Directive 85/374/EEC on Liability for Defective Products, which imposes a form of strict liability on product manufacturers for harm caused by their defective products.

Continue Reading EU Legislative Update on the New Product Liability Directive

On 31 May 2023, at the close of the fourth meeting of the US-EU Trade & Tech Council (“TTC”), Margrethe Vestager – the European Union’s Executive Vice President, responsible for competition and digital strategy – announced that the EU and US are working together to develop a voluntary AI Code of Conduct in advance of formal regulation taking effect. The goal, according to Vestager, is to develop non-binding international standards on risk audits, transparency and other requirements for companies developing AI systems. The AI Code of Conduct, once finalized, would be put before G7 leaders as a joint transatlantic proposal, and companies would be encouraged to voluntarily sign up.

Continue Reading EU and US Lawmakers Agree to Draft AI Code of Conduct

On 11 May 2023, members of the European Parliament’s internal market (IMCO) and civil liberties (LIBE) committees agreed their final text on the EU’s proposed AI Act. After MEPs formalize their position through a plenary vote (expected this summer), the AI Act will enter the last stage of the legislative process: “trilogue” negotiations with the European Commission, Parliament and the Council, which adopted its own amendments in late 2022 (see our blog post here for further details). European lawmakers hope to adopt the final AI Act before the end of 2023, ahead of the European Parliament elections in 2024.

In perhaps the most significant change from the Commission and Council draft, under MEPs’ proposals, providers of foundation models – a term defined as an AI model that is “trained on broad data at scale, is designed for generality of output, and can be adapted to a wide range of distinctive tasks” (Article 3(1c)) – would be subject to a series of obligations. For example, providers would be under a duty to “demonstrate through appropriate design, testing and analysis that the identification, the reduction and mitigation of reasonably foreseeable risks to health, safety, fundamental rights, the environment and democracy and the rule of law prior and throughout development” (Article 28b(2)(a)), as well as to draw up “extensive technical documentation and intelligible instructions for use” to help those that build AI systems using the foundation model (Article 28b(2)(e)).

Continue Reading EU Parliament’s AI Act Proposals Introduce New Obligations for Foundation Models and Generative AI

2023 is set to be an important year for developments in AI regulation and policy in the EU. At the end of last year, on December 6, 2022, the Council of the EU (the “Council”) adopted its general approach and compromise text on the proposed Regulation Laying Down Harmonized Rules on Artificial Intelligence (the “AI Act”), bringing the AI Act one step closer to being adopted. The European Parliament is currently developing its own position on the AI Act which is expected to be finalized by March 2023. Following this, the Council, Parliament and European Commission (“Commission”) will enter into trilogue discussions to finalize the Act. Once adopted, it will be directly applicable across all EU Member States and its obligations are likely to apply three years after the AI Act’s entry into force (according to the Council’s compromise text).  

Continue Reading EU AI Policy and Regulation: What to look out for in 2023

            On April 28, 2022, Covington convened experts across our practice groups for the Covington Robotics Forum, which explored recent developments and forecasts relevant to industries affected by robotics.  Sam Jungyun Choi, Associate in Covington’s Technology Regulatory Group, and Anna Oberschelp, Associate in Covington’s Data Privacy & Cybersecurity Practice Group, discussed global regulatory trends that…

Continue Reading Robotics Spotlight: Global Regulatory Trends Affecting Robotics

On December 15, 2020, the European Commission published its proposed Regulation on a Single Market for Digital Services, more commonly known as the Digital Services Act (“DSA Proposal”).  In publishing the Proposal, the Commission noted that its goal was to protect consumers and their fundamental rights online, establish an accountability framework for online services, and foster innovation, growth and competitiveness in the single market.  On the same day, the Commission also published its proposal for a Digital Markets Act (“DMA”), which would impose new obligations and restrictions on online services that act as “designated gatekeepers” (see our analysis of the DMA Proposal here).
Continue Reading EU Publishes Proposal For Digital Services Act