Dispatch from Brussels: Updates on EU tech policy 

First draft Council text on the AI Omnibus: The Omnibus meant to reassess and simplify laws regarding AI and data is currently undergoing negotiations between EU member states. Crucially, the draft text removes the Commission’s power to trigger compliance requirements earlier (should guidelines and standards be ready), cementing the delayed enforcement timelines for high-risk systems to December 2027 and August 2028. Other significant shifts include the reinstatement of mandatory registration for systems deemed "out of scope" and a reduction in the AI Office’s enforcement powers, returning more control to Member State authorities in areas like critical infrastructure. On its end, the European Parliament has not yet begun to form its position on the text.

AI act High Risk Guidelines delayed: The Commission has missed the 2 February 2026 deadline for finalising its AI Act guidelines on high-risk classification. A draft consultation is expected shortly, but final adoption is now unlikely before the spring. This means the guidelines which were eagerly awaited by companies to help further understand their compliance requirements under the EU’s AI Act before the key deadline of August 2026, will not be able to inform compliance strategies on the originally planned date. techUK will keep members updated on these developments

Sovereignty

European parliament adopts Digital Sovereignty report: The European Parliament has adopted a key digital sovereignty report, but only after mainstream groups (EPP, S&D, Renew, and the Greens) moved to sideline the far-right rapporteur. The final text condemns US interference and targets Elon Musk’s Grok AI model, while prioritising the Chips Act and quantum technology. The adopted report, while not legally binding in any way, is another strong signal from the European parliament calling for action on what it calls “excessive dependencies on non-EU actors in critical areas such as cloud infrastructure, semiconductors, AI and cybersecurity”.

Cybersecurity

Commission reveals Cybersecurity Act Revision proposal: The Commission’s proposed revision to the Cybersecurity Act marks a pivot towards a more geopolitical approach to tech regulation. Influenced by the Draghi report, the update expands ENISA’s mandate and introduces a "Trusted ICT Supply Chain" framework, enabling the EU to designate and phase out "high-risk vendors" within 36 months of application of the law. While controversial "sovereignty requirements" are currently absent from the text, the proposal signals a tightening of vendor scrutiny. You can read more about this on our website.

Networks

Digital Networks Act unveiled: The European Commission’s newly unveiled Digital Networks Act (DNA) seeks to overhaul the EU's connectivity landscape to support AI and cloud expansion. Key features include a "single passport" system for telecom operators to operate across the bloc and a coordinated shift from copper to fibre. Crucially, the proposal stops short of imposing mandatory "network fees" on online platforms, opting instead for a voluntary conciliation mechanism. More detailed information is available on our website.

Platforms

DSA Enforcement - X Under Scrutiny and WhatsApp Joins the VLOP Ranks: The Commission has launched a formal investigation into X under the Digital Services Act, specifically targeting the deployment of its Grok AI. The Commission will look into whether the company properly assessed and mitigated risks associated with the deployment of Grok's functionalities into X in the EU. This includes risks related to the dissemination of illegal content in the EU, such as manipulated sexually explicit images, including content that may amount to child sexual abuse material. Simultaneously, WhatsApp has been officially designated as a Very Large Online Platform (VLOP) due to its "Channels" feature exceeding 45 million EU users. This designation triggers a strict four-month compliance window for Meta to implement systemic risk assessments and enhanced moderation for the Channels service.

EU Single Market

EU Commission adopts 2026 single market report: The European Commission has adopted the 2026 Annual Single Market and Competitiveness Report which outlines the overall health of the EU single market. The report reveals a mixed performance across 29 key indicators. Notable progress in AI adoption and renewable energy is offset by declines in private investment and intra-EU trade. this year, the Commission introduced a new indicator to track simplification efforts.

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