European Commission Withdraws Proposals on Assignments of Claims and AI Liability

The European Commission has formally withdrawn two legislative proposals related to judicial cooperation in civil matters, namely the Proposal for a Regulation on the law applicable to the third-party effects of assignments of claims, as well as the Proposal for a Directive on adapting non-contractual civil liability rules to artificial intelligence (AI Liability Directive).

A notice of the withdrawals has been published in the Official Journal on 6 October 2025, following the Commission’s 2533rd meeting on 16 July 2025. Both proposals had previously been listed in Annex IV of the Commission 2025 Work Programme of 11 February 2025, already noted on this blog.

Reasons for the withdrawals are set out in Annex IV referred to above. As regards the proposal on the law applicable to the third-party effects of assignments of claims, the stated reason is the absence of a foreseeable agreement among the EU political institutions. For the AI Liability Directive, the stated reason is also the lack of a foreseeable agreement; the Commission further indicated that it will evaluate whether to present a revised proposal or to pursue an alternative approach.