On 30 June 2026, the Council of the European Union adopted a new regulation aimed at streamlining and simplifying certain rules on artificial intelligence, as part of the Omnibus VII legislative package. The regulation introduces a ban on AI-generated non-consensual sexual content and child sexual abuse material, postpones application dates for high-risk AI systems, and clarifies the division of competences between the AI Office and national authorities.
The regulation, proposed by the European Commission on 17 November 2025, is a key deliverable under the 'One Europe, One Market' roadmap. It follows a political agreement between the Council and the European Parliament on 6 May 2026. The adoption responds to calls from EU leaders, starting with the October 2024 European Council and the Budapest declaration of 8 November 2024, for a 'simplification revolution' to reduce regulatory burdens, particularly for SMEs. Since February 2025, the Commission has put forward ten Omnibus packages covering sustainability, investment, agriculture, digitalisation, defence, and other sectors.
The new law sets revised application dates for high-risk AI rules: 2 December 2027 for stand-alone high-risk AI systems and 2 August 2028 for those embedded in products, addressing the original 2 August 2026 deadline. It bans AI systems that generate non-consensual sexual deepfakes or child sexual abuse material as of December 2026. The deadline for establishing national AI regulatory sandboxes is postponed to 2 August 2027, and the grace period for transparency obligations on artificially generated content is shortened from six to three months, with a new deadline of 2 December 2026.
The regulation clarifies that the AI Office supervises general-purpose AI systems where the model and system are developed by the same provider, with exceptions for law enforcement, border management, judicial authorities, and financial institutions, which remain under national competence. It also introduces a mechanism to resolve overlaps between AI act requirements and sectoral legislation for medical devices, toys, lifts, and watercraft, allowing the Commission to limit AI act application via implementing acts. Products covered by the machinery regulation are exempted from direct AI act applicability, with the Commission empowered to adopt secondary legislation on health and safety requirements for high-risk AI systems. The Commission must also issue guidance to help economic operators comply with high-risk rules while minimising compliance burden.
The regulation will be published in the EU's Official Journal and enter into force three days later. The adoption impacts AI developers and providers, who face new compliance timelines and bans on certain practices, but benefit from reduced regulatory overlaps and extended deadlines for high-risk systems. National authorities gain clarity on their supervisory roles, while the AI Office's central oversight is reinforced. EU consumers are protected from harmful AI-generated content, though the shortened transparency grace period may increase pressure on providers to implement labelling solutions quickly.