Education technology (or EdTech) is a vibrant and developing sector. Over 1500 EdTech companies already improve the education experience of both students and lifelong learners in the EU. EU law significantly affects the sector, particularly in areas such as data protection, online safety, consumer protection and AI. The EU’s mission to simplify tech regulation means new opportunities for this sector.
EdTech in a nutshell
EdTech has no set definition, as the sector is vast and versatile. Generally, EdTech tools include language learning platforms, online courses, quiz tools, interactive presentation tools used by students and life-long learners. Here, we focus on technologies specifically designed to enhance learning.
EdTech brings significant opportunities, as the EU has set out to make digital education effective, inclusive and innovative. The EU’s Digital Education Action Plan supports the deployment and integration of digital tools to improve and extend education and training. In the EU, there are more than 1500 EdTech companies developing such tools, as mapped out by the European Edtech Alliance. Over 60% of them are small-sized enterprises, with 10 or less employees.
While education is a national competence, EU law significantly affects the sector, particularly in areas such as data protection, online safety, consumer protection and AI. The EU currently seeks to champion innovation in AI, balancing this ambition with its longstanding commitments to data privacy and consumer protection. This comes with regulatory changes, and EdTech companies need to stay updated on legislative developments which affect them and identify ways to find synergies with the EU institutions to achieve shared goals in facilitating digital education.
Opportunities and challenges ahead
The main policy areas that affect the EdTech sector at the EU level are the GDPR, consumer protection and online safety laws, and AI policy. With efforts to simplify reporting obligations for SMEs on data protection, here’s what the EdTech sector can look forward to in the coming months.
GDPR: Handling sensitive data
EdTech companies handle large volumes of personal data, including names, birthdates, academic records, and sometimes even financial details. In the EU, the General Data Protection Regulation (GDPR) strictly regulates how data is retained, processed and disclosed to third parties. EdTech companies must ensure compliance with these laws. The European Commission has recently proposed a simplification of the GDPR. The proposal is looking to reduce the reporting obligations for mid-size companies to decrease administrative burdens for mid-size companies with up to 750 employees. The GDPR’s risk-based approach would still remain stringent. As the proposal is being currently considered, the Commission is expected to open a consultation, which can be an opportunity for EdTech companies to voice their views on the proposed amendments in light of their experiences with data protection compliance.
Safeguarding users
EdTech companies offer services to a wide range of users, from children to adult learners. As such, they fall under the scope of online safety and consumer protection legislation.
The key legislation covering online safety, the EU’s Digital Services Act (DSA), limits targeted advertising, especially when it comes to minors, tackles illegal or harmful content and manipulative user interfaces. EdTech companies which enable user interaction or content sharing are subject to the DSA. The DSA is particularly stringent on online platforms with over 45 million users, though it also affects small and micro enterprises. All enterprises need to tackle illegal content and have clear and readable terms and conditions. Mid-size companies must also report transparently on content moderation policies.
Legislation on online safety and consumer protection in the EU will keep evolving. The Commission plans to address outstanding concerns around online safety through the upcoming Digital Fairness Act, expected in 2026. The DFA will address addictive and manipulative design, dark patterns, fair contract and subscription practices. This legislation will be relevant for EdTech providers offering paid subscriptions, streaming educational content, or app-based services that incorporate gamification, personalization, or AI. With the DFA, companies can expect more stringent rules and higher compliance requirements, especially when it comes to the protection of minors. The public consultation on the Digital Fairness Act is set to open very soon, inviting stakeholder feedback building on the findings of the Digital Fairness fitness check, published at the end of 2024. In the meantime, the Commission is already collecting stakeholder feedback on the Consumer Agenda 2025-2030, which will also shape the DFA’s more broadly.
AI policy: challenges & opportunities
EU’s AI policy is one of the most far-reaching on a global scale. The AI Act, which will fully enter into force by August 2026, affects EdTech applications in a variety of ways. For instance, EdTech services which use AI to personalise learning or grade student’s performances, are subject to stricter transparency and explainability requirements. The AI Act mandates that the decision-making of the AI tool is clear and that it includes human oversight. Emotion recognition systems and manipulative AI practices are explicitly banned in educational contexts.
Despite its regulatory nature, the AI Act also promotes ethical innovation in AI. This goal is accompanied by the Commission’s recent AI Continent Action Plan, which highlights the importance of investing in digital skills, including the uptake of AI and technology in education. Significant investment, including through public procurement, can be expected in the tech sector, and this can open funding opportunities for EdTech companies. These plans also put an emphasis on an EU-first approach, signalling a favourable climate for EU-based EdTech start-ups and companies.
Other initiatives relevant to EdTech include the Apply AI Strategyand the AI in Science Strategy, which aim to improve the uptake of AI in EU’s critical sectors, science and education. Upskilling is a key aspect of that. The Commission will also present the 2030 Roadmap on the future of digital education and skills by the end of the year, to promote equal access to digital education for all. There is a commitment to increasing the uptake of AI, and actors at the intersection between tech and education, such as EdTech companies, can be valuable partners in helping the EU achieve its strategic goals.
Soft law and international standards
Beyond the EU policymaking efforts which affects EdTech companies, there are efforts to create international standards and so-called soft law and build trust in EdTech. International organisations and standard-setting bodies are developing international standards on AI safety in education technology.
A notable example of this is the Council of Europe’s Artificial Intelligence and Education (AI&ED) expert group, which has been working on a Common European Evaluation Framework of Education Technologies. The aim is to create harmonised standards on EdTech safety, ensuring that the technology provides benefits to learners while ensuring high respect of human rights. The Council of Europe recently hosted a webinarexploring the feasibility of the proposed framework which considered the feasibility of different certification models so that EdTech companies can build trust and credibility with their target audience. We can expect continued efforts on setting standards in the sector. It is therefore important that companies actively engage and provide input in such processes.
Interested to know more?
As the EU seeks to strike a balance between innovation and safeguarding citizens’ rights, EdTech companies can expect regulatory changes but also new windows of opportunity. Regulatory changes and developments in tech and consumer policy can be expected to continue, and it is essential that EdTech companies closely monitor these evolving regulatory developments and actively provide feedback during consultations.
If you want to find out more about these developments and their impact on your organisation, feel free to get in touch with us directly.
