• EU reveals plans to simplify and delay major AI and privacy rules
• High-risk AI obligations would shift from August 2026 to December 2027
• Proposals ease data-use restrictions and soften cookie-consent rules
• Tech firms welcome simplification but want deeper reform
• Privacy groups condemn proposals as a major rollback of digital rights
• EU lawmakers warn of pressure from Big Tech and the US

The European Commission has unveiled sweeping proposals to simplify compliance across its legislative network.

But the move to relax and delay key parts of the EU’s AI and privacy regime has triggered immediate criticism from both technology companies and civil-society groups who accused Brussels of either moving too slowly or surrendering too much ground.

The new ‘Digital Omnibus’ package aims to streamline compliance required under multiple EU laws – including, but not limited to, the AI Act, the General Data Protection Regulation and the e-Privacy Directive. 

Central to the proposals is a delay to the most sensitive AI obligations in “high-risk” domains such as biometric identification, health, utilities, creditworthiness and law enforcement. 

Under the EU plan, rules originally due in August 2026 would instead take effect in December 2027.

Commission officials argued that Europe needs lighter and more predictable regulation if it is to compete with the United States and Asia, where companies have surged ahead in artificial intelligence, advanced chips and data-driven industries.

“Europe has not so far reaped the full benefits of the digital revolution,” said EU economy commissioner Valdis Dombrovskis. “And we cannot afford to pay the price for failing to keep up with demands of the changing world.”

A major shift in the proposals centres on redefining when data ceases to be “personal”, potentially making it easier for companies to use anonymised information from EU citizens for AI training. 

The package also opens the door for firms such as Google, Meta and OpenAI to use Europeans’ personal data more extensively to train models, subject to specific safeguards.

Large European firms including Siemens and SAP have long urged Brussels to revise AI rules they consider too rigid. Washington has repeatedly accused the EU of targeting US companies, a charge the Commission denies.

Legal specialists say the reforms signal a more pragmatic stance. 

“The Commission appears to be aiming for simpler, more predictable rules that reduce friction for innovators while keeping core EU safeguards intact,” said Ahmed Baladi, partner at law firm Gibson Dunn.

Other changes would exempt companies from registering certain narrowly scoped AI systems in the EU’s database of high-risk models. 

Rules around cookie consent would also be simplified, reducing the number of pop-ups users face online. All measures require approval from EU member states and the European Parliament.

Reactions were swift and divided. Lawmaker Brando Benifei insisted Parliament must defend citizens’ digital rights. 

The tech lobbying group CCIA Europe, whose members include Alphabet, Apple and Meta, called the package a positive step but warned that “bolder action is still needed”. 

The AFME financial-services association acknowledged the improvements but said the reforms remained insufficient.

EU antitrust chief Henna Virkkunen conceded that Brussels faced competing pressures. “There will be many stakeholders saying this is not enough,” she said. “And some saying there is too much, so I think we have a balanced package.”

Privacy advocates sharply disagreed. Activist group noyb warned that the changes would vastly expand the ability of AI systems to infer intimate details about individuals. 

“Now all your data is shoved into the algorithms of Meta, Google or Amazon,” said noyb’s Max Schrems. “This makes it easier for AI systems to know even the most intimate details – and consequently manipulate people.”

A coalition of 127 civil-society organisations issued an open letter calling the proposals “the biggest rollback of digital fundamental rights in EU history”. 

Campaigners also deployed mobile billboards and posters across Brussels urging Commission President Ursula von der Leyen to resist pressure from Big Tech and the US administration.

“It is disappointing to see the European Commission cave under the pressure of the Trump administration and Big Tech lobbies,” said Dutch MEP Kim van Sparrentak.