Commissioner Olvér Várhelyi Proposes EU Digital Rulebook and European Democracy Shield to Govern AI and Protect Democracy

On January 15, 2026, Olvér Várhelyi, the European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, addressed the Cypriot Interparliamentary Conference highlighting the opportunities and challenges of Artificial Intelligence (AI). He emphasized AI's revolutionary potential but also underscored the risks posed by unregulated AI use, especially in spreading disinformation and interfering with democratic processes.

Várhelyi outlined comprehensive regulatory frameworks—the EU’s Digital Rulebook and the recently adopted European Democracy Shield—to govern AI technology responsibly. The Digital Rulebook includes enforceable legislation such as the AI Act, General Data Protection Regulation (GDPR), Digital Services Act (DSA), Political Advertising Regulation, and European Media Freedom Act. Notably, the AI Act will come into force in August 2024 with prohibitions on manipulative AI uses, mandated labeling of AI-generated content, and developing guidelines on high-risk AI systems, including electoral processes. Várhelyi announced plans for a forthcoming Digital Fairness Act intended to protect consumers from deceptive online practices.

safeguarding information space integrity; reinforcing democratic institutions and free elections; and boosting societal resilience and citizen engagement. Central to this is establishing a European Centre for Democratic Resilience to enhance cooperation across member states and candidate countries to swiftly counter foreign information interference.

The proposals strongly lean towards increasing European Union powers to regulate online platforms while mandating cooperation with national authorities. They enforce stricter transparency for political advertisements, require platform accountability for disinformation, and call for new institutional structures.

EU consumers stand to benefit from improved protection against misleading online content and better control over personal data through GDPR and AI regulations. EU producers and platform providers face higher compliance costs and operational transparency demands, especially those operating large online platforms. National authorities and EU regulatory bodies will see strengthened roles in election oversight and misinformation mitigation, requiring enhanced resources and coordination. Meanwhile, NGOs and civil society engaged in media freedom and democratic engagement may gain from heightened institutional support and transparency.