The European Commission is preparing to introduce a major package of reforms aimed at simplifying digital regulations across the bloc, in a bid to reduce the administrative burden on businesses and boost European startups in the global artificial intelligence (AI) market.
The legislative initiative, known internally as the “Digital Omnibus,” is set to propose changes to several landmark EU laws, including the General Data Protection Regulation (GDPR), the AI Act, the e-Privacy Directive, and the Data Act. Officials say the goal is to streamline compliance requirements for companies, particularly small and medium-sized enterprises (SMEs), and strengthen Europe’s competitiveness in emerging technologies.
Proposals under consideration could include measures to reduce repetitive cookie consent requests, giving users fewer prompts when visiting the same website. Cybersecurity reporting could also be simplified, with businesses potentially able to report incidents such as data breaches through a single point of contact.
However, some aspects of the reforms have sparked criticism. Early drafts indicate that rules for high-risk AI systems—those used to evaluate job applications or loan eligibility—could be delayed until December 2027, a move supported by major EU economies including France and Germany. Certain provisions may allow large tech companies, including Google, Meta, and OpenAI, to use Europeans’ personal data to train AI systems if a legitimate business interest exists. Companies could also gain exemptions from restrictions on processing sensitive personal data, measures intended to prevent regulation from hindering innovation.
Digital privacy advocates have voiced strong objections. The European Digital Rights (EDRi) group warned that the legislation could constitute the largest rollback of digital human rights in EU history. Critics argue that loosening safeguards around AI and personal data may compromise privacy protections that have been central to the bloc’s digital agenda.
Business organisations have welcomed the move, arguing that overly strict rules have slowed AI development in Europe, placing the continent at a disadvantage compared with the United States and China. They point to lengthy compliance procedures as a barrier to innovation for smaller companies and startups seeking to scale their operations globally.
The European Commission’s proposals come amid mounting international competition in AI, with US and Chinese firms making rapid advances in both research and commercial applications. EU policymakers are balancing the need to protect citizens’ digital rights with the imperative to foster a thriving technology ecosystem.
The full legislative package is expected to be formally unveiled in the coming weeks, with debates in the European Parliament and among member states likely to focus on striking a balance between innovation and privacy. The outcome will shape Europe’s position in the global AI race and determine how startups navigate the region’s complex regulatory environment.
