EU Council greenlights AI Act simplification: High-risk AI deadlines deferred by 16 months, new rules against AI-generated intimate images
What it really says
On June 29, 2026, the Council of the European Union formally adopted the Digital Omnibus on AI - the first amendment package to the EU AI Act since its adoption in June 2024. The European Parliament had voted in favor on June 16. The political agreement between Council, Parliament, and Commission was reached on May 7. Key changes include: First, compliance deadlines for high-risk AI systems are significantly deferred. Standalone high-risk AI systems (Annex III, e.g., AI in recruitment, creditworthiness assessment, law enforcement) must now comply by December 2, 2027 instead of August 2, 2026 - a 16-month deferral. Product-integrated high-risk AI (Annex I, e.g., medical devices, elevators, radio equipment) is deferred from August 2027 to August 2028. Second, Article 50 transparency obligations remain unchanged at August 2, 2026 - this deadline stands and is enforceable. Third, a new prohibition is introduced: from December 2, 2026, so-called 'nudifier' applications are banned - AI systems that generate or manipulate sexually explicit or intimate images, video, or audio without explicit consent. AI-generated child sexual abuse material is also explicitly prohibited. Fourth, the simplified compliance framework for SMEs is extended to companies with up to 750 employees and 150 million euros in annual revenue, including simplified guidance, reduced fines, regulatory sandbox access, and standardized documentation templates. Fifth, the use of GDPR special category personal data (e.g., health data, biometric data) is facilitated where necessary for detecting and mitigating bias in AI models.
Our assessment
This development merits a green rating because it demonstrates that EU regulation is pragmatic and adaptive - not rigid bureaucracy but a learning system. The reassuring side: the 16-month extension for high-risk AI gives companies - especially SMEs - urgently needed time to build compliance systems without rushing to implement substandard solutions. The expanded SME definition (up to 750 employees) protects a large segment of the European economy from disproportionate administrative burden. The concerning side is limited: critics could argue that any delay risks leaving unregulated high-risk AI systems in operation longer. However, Article 50 transparency obligations take effect as planned on August 2, 2026, meaning fundamental disclosure requirements remain in place. Particularly positive: the ban on AI-generated intimate images without consent closes a dangerous gap and potentially protects millions from digital violence.
Relevance for Germany
This amendment package has immediate practical significance for Germany. German companies using AI in recruitment, creditworthiness assessment, or healthcare gain 16 months of additional preparation time. The expanded SME definition (up to 750 employees, 150M euros revenue) is crucial for Germany's Mittelstand. The Bundesnetzagentur as national AI supervisory authority must adjust its implementation plans. The nudifier ban from December 2026 is relevant for German law enforcement as AI-generated intimate images increasingly become a problem, particularly among youth. Article 50 transparency obligations taking effect August 2, 2026 require German media and content platforms to have adapted their systems by then.
Fact check
The Council's formal adoption of the Digital Omnibus on AI on June 29, 2026 is documented by the official Council press release. The Parliament's approval on June 16 and the political agreement on May 7 are also confirmed by official EU sources. The specific deadline deferrals - Annex III from August 2026 to December 2027, Annex I from August 2027 to August 2028 - are consistently reported by DLA Piper, Inside Global Tech, Gibson Dunn, Latham & Watkins, and ComplianceHub. The unchanged entry into force of Article 50 transparency obligations on August 2, 2026 is confirmed by multiple sources. The new nudifier ban from December 2026 and expanded SME definition (750 employees, 150M euros) are consistently documented across all analyzed sources.
Source
- • https://www.consilium.europa.eu/en/press/press-releases/2026/06/29/artificial-intelligence-council-gives-final-green-light-to-simplify-and-streamline-rules/
- • https://www.consilium.europa.eu/en/press/press-releases/2026/05/07/artificial-intelligence-council-and-parliament-agree-to-simplify-and-streamline-rules/
- • https://knowledge.dlapiper.com/dlapiperknowledge/globalemploymentlatestdevelopments/2026/The-Digital-AI-Omnibus-Proposed-deferral-of-high-risk-AI-obligations-under-the-AI-Act
- • https://www.insideglobaltech.com/2026/05/28/eu-ai-act-update-timeline-relief-targeted-simplification-and-new-prohibitions/