Europe has made a significant shift in its approach to tech regulation after years of standing firm against major tech companies.
Facing mounting pressure from both the industry and the US government, Brussels is now easing some of the stringent protections of its main privacy law, the General Data Protection Regulation (GDPR).
This includes changes to the notorious cookie consent pop-ups and a relaxation of key rules surrounding artificial intelligence, all aimed at reducing bureaucracy and stimulating economic growth.
The European Commission, which is the executive branch of the EU, has proposed adjustments that modify fundamental aspects of the GDPR.
These changes will allow companies to more easily share anonymized and pseudonymized personal data. AI firms will now have the legal ability to use personal data for training their models, provided they adhere to other GDPR stipulations.
Additionally, the proposal modifies important elements of the AI Act, a comprehensive set of regulations that took effect in 2024 but included many provisions set to be implemented later.
The new plan extends the grace period for regulations concerning high-risk AI systems that could pose serious risks to health, safety, or fundamental rights. These rules will only be enforced once it is confirmed that the necessary standards and tools are available for AI companies.
One of the changes likely to be welcomed by many is the reduction of cookie consent banners that are prevalent across Europe.
According to the new proposal, certain “non-risk” cookies won’t require pop-ups, and users will have the ability to manage their preferences through centralized browser settings that apply across different websites.
Other changes included in the new Digital Omnibus involve simplifying documentation requirements for smaller AI companies, creating a unified system for reporting cybersecurity incidents, and consolidating oversight of AI under a dedicated AI Office within the EU.
Henna Virkkunen, the executive vice-president for tech sovereignty at the European Commission, emphasized that these reforms are designed to support innovation in the EU.
She stated that while Europe has the potential to succeed, many startups and small businesses have been hindered by rigid regulations.
By reducing bureaucratic hurdles and improving access to data, the EU aims to create an environment where innovation can thrive while ensuring that users’ fundamental rights remain protected.
The proposed changes will now move to the European Parliament and the 27 member states of the EU, where they will need to secure a qualified majority for approval. This process could take several months and may lead to significant amendments.
The anticipated changes are expected to spark considerable debate in Brussels, reminiscent of the discussions surrounding the GDPR and AI Act. The GDPR is a foundational element of Europe’s tech policy and is regarded as a vital regulation.
Preliminary drafts of the changes have already stirred controversy among civil rights advocates and lawmakers, who argue that these adjustments undermine essential protections and yield to the demands of large tech companies.
This decision comes after extensive lobbying from Big Tech and influential figures, including former US President Donald Trump and ex-Italian Prime Minister Mario Draghi, who urged the EU to relax its stringent tech regulations.
The Commission has framed these changes as a simplification of the EU’s tech laws rather than a weakening, attempting to address concerns that strict regulations may be hindering Europe’s global competitiveness.
Currently, Europe lacks strong contenders in the AI sector, which is largely dominated by American and Chinese firms such as Google, DeepSeek, and OpenAI.
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