Business

EU pivot on digital regulation aims to boost AI competitiveness amid privacy concerns

Thursday, 20 November 2025 5:37AM UTC

The European Union unveils a draft package to relax key digital rules, including GDPR and the AI Act, in a move aimed at accelerating AI innovation and maintaining global competitiveness, sparking debate over privacy standards and regulatory balance.

In a marked policy shift, the European Union is poised to scale back key components of its pioneering digital regulations, including the General Data Protection Regulation (GDPR) and the AI Act. This reorientation aims to strengthen Europe's competitiveness in the global technology arena, particularly in artificial intelligence, amid mounting pressures from U.S. tech giants and concerns over European firms lagging behind their international counterparts.

The European Commission recently unveiled a draft package known as the "Digital Omnibus," which proposes significant relaxations to existing privacy and AI rules. This initiative seeks to simplify compliance obligations for businesses, especially for small and medium enterprises, and facilitate broader AI development. Central to these proposals is the easing of restrictions on the use of European citizens' personal data for AI training purposes, permitting companies such as Google, Meta, and OpenAI to access and process data with fewer hurdles. The scope of what constitutes “personal data” would be narrowed by treating more pseudonymized information as non-personal, thereby reducing consent requirements and enabling more extensive data utilisation for AI systems.

Furthermore, the enforcement timeline for the strictest elements of the AI Act, particularly regulations governing high-risk AI systems used in sectors like healthcare, biometric identification, credit assessments, and law enforcement, will be delayed from August 2026 to December 2027. This postponement follows intense lobbying efforts by major technology firms and reflects the EU’s intent to provide companies with additional time to adapt to complex regulatory demands. The delay applies not only to high-risk AI use cases but also includes a phased introduction of certain transparency requirements for AI-generated content.

These regulatory revisions are part of a broader attempt to harmonize and streamline digital rules across the EU. Alongside adjustments to the AI Act and GDPR, the Digital Omnibus also targets other frameworks such as the e-Privacy Directive and the Data Act. Among the proposed changes are simplified cookie consent mechanisms to reduce user friction, with fewer pop-ups and more flexible consent options, thus aiming to foster a friendlier environment for businesses and users alike. For businesses, the omnibus package promises substantial savings in compliance costs by cutting documentation and reporting burdens, notably benefiting cross-border operations through tools like the proposed 'European Business Wallet'.

While officials insist these changes do not amount to deregulation but rather a refinement to maintain robust protections while enhancing Europe’s innovation potential, privacy advocates express serious concerns. Critics warn that narrowing definitions of sensitive data and expanding exemptions for AI training risks eroding the strong privacy standards established since GDPR’s inception in 2018. Privacy activist Max Schrems notably described the move as “death by a thousand cuts” to GDPR protections. There is also apprehension that reducing data subject rights, such as limiting user access to personal data to curb “abusive” requests, may undermine transparency and accountability, potentially making it harder for individuals to understand and control how their data is used by AI models.

The geopolitical context underpins much of the EU's recalibration. With the United States and China making rapid strides in AI development, and with American tech giants exerting significant lobbying influence, the EU faces pressure to avoid stifling innovation through overly stringent regulations. France and Germany have publicly supported the simplification effort, highlighting the need to alleviate burdens on companies and retain digital talent within Europe. Nonetheless, this pragmatic pivot has generated resistance from various quarters, including several EU member states like France, Austria, and the Czech Republic, who fear weakening digital rights protections could set a harmful precedent.

For the tech industry, these changes offer a mix of relief and complexity. Firms deploying AI within the EU may gain greater flexibility and reduced regulatory uncertainty, but must remain vigilant about evolving compliance landscapes and ongoing political debates. Specialists emphasize that the interplay between GDPR and AI Act obligations will continue to require nuanced risk assessments, particularly in areas like biometrics and surveillance technologies, sectors likely to see their regulatory scrutiny recalibrated rather than removed.

As the European Commission calls for public consultation ahead of finalising the Digital Omnibus, stakeholders across industry, civil society, and government await robust parliamentary scrutiny. The outcome will decisively influence Europe's stance as both a champion of digital rights and a competitive actor in the AI revolution. Balancing innovation with privacy remains a delicate task, with Europe's tech future still very much in flux.

📌 Reference Map:

^[1] (WebProNews) - Paragraphs 1, 2, 3, 5, 7, 8, 9, 10
^[2] (Reuters) - Paragraphs 2, 3, 5
^[3] (Reuters) - Paragraphs 3, 4, 6
^[4] (Reuters) - Paragraph 4
^[5] (TechRadar) - Paragraph 3, 7
^[6] (Euronews) - Paragraph 3, 5
^[7] (Euronews) - Paragraph 7

Source: Noah Wire Services

More on this

https://www.webpronews.com/eus-ai-and-privacy-pivot-scaling-back-regulations-amid-tech-pressures/ - Please view link - unable to able to access data
https://www.reuters.com/sustainability/boards-policy-regulation/eu-delay-high-risk-ai-rules-until-2027-after-big-tech-pushback-2025-11-19/ - The European Commission announced on November 19, 2025, that it will delay certain high-risk provisions of its AI Act until December 2027, a shift from the previously scheduled implementation in August 2026. This decision comes amid pressure from major technology firms and aims to reduce regulatory burdens while maintaining robust oversight. The delay applies to AI applications in sensitive areas such as biometric identification, health services, credit evaluations, law enforcement, job applications, and road safety. The move is part of a broader regulatory easing initiative known as the "Digital Omnibus," which also seeks to simplify the enforcement of other technology-related regulations, including the GDPR, e-Privacy Directive, and the Data Act. Proposed GDPR revisions would permit companies like Google, Meta, and OpenAI to utilize European users' data for training AI models. The Commission emphasized that this simplification does not equate to deregulation but rather a reassessment of existing rules to enhance Europe's global competition.
https://www.reuters.com/sustainability/boards-policy-regulation/how-eu-plans-ease-rules-big-tech-2025-11-19/ - The European Commission has proposed the 'Digital Omnibus' package to revise EU digital regulations, aiming to ease compliance for big tech companies and foster AI development. Key measures include delaying the enforcement of high-risk AI rules from August 2026 to December 2027, granting firms more leeway in using large datasets including health and biometric information for AI training without explicit consent. The redefined concept of anonymous data would reduce the scope of what is considered "personal" under privacy law. New cookie rules would reduce user annoyance, allowing broader consent settings across websites and fewer pop-ups. For small and medium enterprises (SMEs), the plan reduces documentation and compliance burdens, potentially saving hundreds of millions of euros annually and facilitating cross-border business through a new 'European Business Wallet' for digital filings. Critics argue these reforms could dilute privacy protections in place for two decades and disproportionately benefit large tech firms, despite assurances from officials that EU privacy standards will be preserved. The measures still require approval from EU member states and the European Parliament.
https://www.reuters.com/sustainability/boards-policy-regulation/big-tech-may-win-reprieve-eu-mulls-easing-ai-rules-document-shows-2025-11-07/ - A leaked draft of the European Commission's "Digital Omnibus" document reveals that Apple, Meta, and other tech giants may benefit from softened artificial intelligence (AI) regulations in the EU. This potential easing of the landmark AI Act, adopted last year, follows extensive lobbying by tech companies and criticism from the U.S. government. The proposed changes are part of the EU's broader effort to simplify a wave of recent regulations. Key proposed amendments include exemptions for companies using high-risk AI systems for limited or procedural functions from registering in the EU database, and a one-year grace period delaying enforcement of penalties until August 2027. Additionally, AI-generated content marking requirements—meant to combat misinformation and deepfakes—will also be phased in gradually. These reforms come on the heels of other recently diluted EU rules, including those targeting environmental practices, amid increasing corporate and international pressure. EU tech chief Henna Virkkunen is scheduled to present the full proposal on November 19.
https://www.techradar.com/pro/major-privacy-laws-including-gdpr-could-be-downgraded-to-try-and-boost-ai-growth-and-cut-red-tape - A new proposal reportedly under consideration by the European Commission could lead to modifications in key privacy regulations such as the GDPR, aiming to enhance AI development and reduce regulatory barriers. Slated for announcement on November 19, 2025, this "digital omnibus" package could make it easier for AI systems to train on certain types of data, including sensitive categories like political beliefs, religion, and health, by altering current protections around pseudonymized data. Websites and apps may also gain broader legal rights to track users beyond the existing consent-based model. Though these proposed changes are expected to be technical and targeted, without undermining core GDPR principles, the possibility has triggered significant political and legal debate. Critics, including GDPR co-architect Jan Philipp Albrecht, caution that the revisions may erode established privacy standards within the EU. Several member states, including France, Austria, and the Czech Republic, have voiced opposition, while Germany and Finland appear supportive, citing the need for the EU to stay competitive amidst rapid AI growth in the US and China. The European Commission has yet to confirm any changes, but the discussion is intensifying as the announcement date nears.
https://www.euronews.com/my-europe/2025/11/19/european-commission-delays-full-implementation-of-ai-act-to-2027 - The EU is giving companies more time to adapt to its new regulations on AI, but experts and MEPs say they regret the rowback on rules adopted just a year ago. The European Commission is today unveiling its "Digital Omnibus", a plan meant to simplify the EU's sweeping digital regulations. Among the legislation it covers is the AI Act, which was adopted last year. The legislation is being implemented only gradually – but with the Omnibus, the Commission has officially announced that some provisions on the riskiest iterations of the technology are set to be delayed. In particular, the Omnibus offers more time for businesses and organisations deploying "high-risk" AI technologies, which are used for purposes such as analysing CVs, evaluating school exams or assessing loan applications, will now not come under the full weight of the bill's provisions until December 2027, more than a year after the original date of August 2026.
https://www.euronews.com/my-europe/2025/11/18/france-germany-support-simplification-push-for-digital-rules-as-commission-preps-revision- - The Commission, with French-German backing, plans to ease AI and data rules to ease the burdens on European companies. Members of Parliament and NGOs fear it will open "pandora’s box" of negative ramifications. As the European Commission prepares to simplify digital rules with a new omnibus plan due to be presented on Wednesday, Berlin pulled out the red carpet in a glitzy summit dedicated to digital sovereignty. "I'm very curious about what tomorrow will bring. Hopefully it's a big bold step in the right direction," said German Minister for Digital Transformation Karsten Wildberger on a panel at the Berlin gathering. The European Commission has been working for months on a new proposal to "simplify" rules, reduce administrative burden for companies, in particular SMEs, which struggle to comply with complex EU rules, to keep talent in Europe and stay competitive in a global race.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative presents recent developments regarding the EU's 'Digital Omnibus' package, announced on November 19, 2025, which includes delaying certain high-risk AI regulations until December 2027. ([reuters.com](https://www.reuters.com/sustainability/boards-policy-regulation/eu-delay-high-risk-ai-rules-until-2027-after-big-tech-pushback-2025-11-19/?utm_source=openai)) This aligns with the publication date of the article, indicating high freshness. However, similar information has been reported by other reputable outlets, such as Reuters and Euronews, suggesting that the content may not be entirely original. ([reuters.com](https://www.reuters.com/sustainability/boards-policy-regulation/how-eu-plans-ease-rules-big-tech-2025-11-19/?utm_source=openai)) Additionally, the article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. ([lemonde.fr](https://www.lemonde.fr/en/economy/article/2025/11/19/european-commission-launches-digital-regulation-simplification_6747624_19.html?utm_source=openai))

Quotes check

Score: 7

Notes: The article includes direct quotes from privacy activist Max Schrems, describing the move as “death by a thousand cuts” to GDPR protections. A search reveals that this exact quote has been used in earlier reports, indicating potential reuse of content. ([reuters.com](https://www.reuters.com/sustainability/boards-policy-regulation/eu-ease-ai-privacy-rules-critics-warn-caving-big-tech-trump-2025-11-19/?utm_source=openai)) The wording of the quote varies slightly in different sources, suggesting some variation in reporting. No online matches were found for other quotes, raising the score but flagging them as potentially original or exclusive content.

Source reliability

Score: 6

Notes: The narrative originates from WebProNews, a less well-known outlet, which may raise questions about its credibility. However, the article references reputable organizations such as Reuters and Euronews, which adds credibility to the information presented. The reliance on a single outlet for the primary narrative introduces some uncertainty.

Plausability check

Score: 8

Notes: The claims about the EU's 'Digital Omnibus' package and the delay of high-risk AI regulations are plausible and align with recent reports from reputable sources. ([reuters.com](https://www.reuters.com/sustainability/boards-policy-regulation/eu-delay-high-risk-ai-rules-until-2027-after-big-tech-pushback-2025-11-19/?utm_source=openai)) The narrative lacks supporting detail from other reputable outlets, which is a concern. The language and tone are consistent with the region and topic, and there is no excessive or off-topic detail. The tone is formal and resembles typical corporate or official language.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent developments regarding the EU's 'Digital Omnibus' package, with a publication date of November 19, 2025, indicating high freshness. However, similar information has been reported by other reputable outlets, suggesting potential reuse of content. The reliance on a less well-known outlet for the primary narrative introduces some uncertainty. While the claims are plausible and align with recent reports, the lack of supporting detail from other reputable outlets is a concern. Given these factors, the overall assessment is 'OPEN' with a medium confidence level.

EU
Digital regulations
AI development