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AI: EU Member States plan "digital expropriation" of Europeans

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A leaked Council proposal pushed by the Irish Presidency as part of the Digital Omnibus would add an Article 88c/88bis that effectively legalizes wide-ranging processing of personal data “in the context of AI.” Under the draft, AI companies like OpenAI, Google, Meta, Anthropic and SpaceX could rely on an assumed “legitimate interest” to use any personal data they can access, including decades-old chats or data from people who were never customers, without consent. The fast-track approach bypassed a fundamental-rights assessment and the EU expert body. Several influential member states, notably Ireland and Germany, back massive liberalization, arguing it simplifies rules for industry.

Critics warn this amounts to a digital expropriation of Europeans’ data and would hollow out four decades of EU data protection. The proposal would also shrink what counts as personal data via broader pseudonymisation rules and let firms invoke internal capabilities or alleged “abusive” requests to evade obligations, making GDPR enforcement practically impossible. That would advantage huge non‑EU platforms, accelerate data transfers and know-how flows to the US and China, and permit uses currently illegal - personalized advertising, deepfakes, disinformation or other harmful AI applications. With the European Parliament divided, the last check may be legal challenges at the Court of Justice, but the change would create major legal uncertainty and industry concentration even if later overturned.

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