TL;DR

After years of tough technology regulation, the European Union is scaling back landmark privacy and AI laws under pressure from Big Tech and the US government. Proposed changes weaken GDPR protections, delay AI Act implementation, and simplify cookie consent mechanisms—marking a significant shift in Brussels’ approach to technology governance.

Major Regulatory Rollback Proposed

The European Commission has proposed changes to core elements of the General Data Protection Regulation (GDPR), making it easier for companies to share anonymised and pseudonymised personal datasets. The amendments would allow AI companies to legally use personal data to train AI models, provided training complies with other GDPR requirements.

The proposal also waters down a key part of Europe’s artificial intelligence rules, the AI Act, which came into force in 2024 but had elements due to take effect later. The change extends the grace period for rules governing high-risk AI systems that pose “serious risks” to health, safety, or fundamental rights, which were due to come into effect next summer. The rules will now only apply once it’s confirmed that “the needed standards and support tools are available” to AI companies.

One change likely to please users and businesses alike is a reduction in Europe’s ubiquitous cookie banners and pop-ups. Under the new proposal, some “non-risk” cookies won’t trigger pop-ups at all, and users would be able to control others from central browser controls that apply to websites broadly.

Other amendments in the new Digital Omnibus include simplified AI documentation requirements for smaller companies, a unified interface for companies to report cybersecurity incidents, and centralising oversight of AI into the bloc’s AI Office.

Political and Competitive Context

“We have all the ingredients in the EU to succeed. But our companies, especially our start-ups and small businesses, are often held back by layers of rigid rules,” said Henna Virkkunen, executive vice-president for tech sovereignty at the European Commission. “By cutting red tape, simplifying EU laws, opening access to data and introducing a common European Business Wallet we are giving space for innovation to happen and to be marketed in Europe.”

The decision follows months of intense pressure from Big Tech and Donald Trump—as well as high-profile internal figures like ex-Italian prime minister and former head of the European Central Bank Mario Draghi—urging the bloc to weaken burdensome tech regulation.

The Commission has sought to frame the changes as simplifying EU tech laws rather than weakening them—a way of soothing growing fears in Brussels that tough rules are hampering competitiveness. With very few exceptions, Europe doesn’t have any credible competitors in the global AI race, which is dominated by US and Chinese companies like DeepSeek, Google, and OpenAI.

Civil Rights Opposition Expected

The proposed overhaul won’t land quietly in Brussels. The GDPR is a cornerstone of Europe’s tech strategy and as close to sacred as a policy can be. Leaked drafts have already provoked outrage among civil rights groups and politicians, who have accused the Commission of weakening fundamental safeguards and bowing to pressure from Big Tech.

If the development of the GDPR and AI Act are anything to go by, a political and lobbying firestorm is on its way. The proposal must now navigate through the European Parliament and the EU’s 27 member states—where it will need a qualified majority—for approval, a process that could drag on for months and potentially introduce significant changes.

Looking Forward

The regulatory rollback represents a fundamental shift in Europe’s approach to technology governance. After years of setting the bar for tough regulation worldwide, Brussels is prioritising economic competitiveness over privacy protections and AI safety measures.

The outcome will likely determine whether Europe can foster competitive technology companies whilst maintaining consumer protections, or whether the bloc has permanently ceded technological leadership to US and Chinese rivals. The political battle over these changes will test whether European institutions can withstand coordinated pressure from global technology giants and allied governments.

Source: The Verge

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