European Union: The European Commission publishes an inception impact assessment to adapt the EU liability rules to the digital age and circular economy

On 30 June 2021, the European Commission (EC) published an inception impact assessment (IIA) on a possible legislative initiative aiming to adapt the EU liability rules to the digital age and circular economy. IIAs are aimed at informing stakeholders and citizens alike about the plans of the EC. To ensure that emerging technologies are used safely, the IIA wants to revise the current Product Liability Directive 85/374/EEC as well as national liability rules. This need for action was previously identified in a White Paper on AI and the Report on Liability for AI, IoT, and Robotics. Furthermore, the initiative will complement the Artificial Intelligence Act and the revision of the Machinery Regulation and General Product Safety Directive. Finally, the framework should lead to legal certainty, limit damages and in the case of damages, secure compensation for damaged parties.