Tech groups welcome EU reforms as privacy advocates warn of retreat
Tech industry welcomes lighter EU rules but says reforms fall short.
The EU has unveiled plans to scale back certain aspects of its AI and data privacy rules to revive innovation and alleviate regulatory pressure on businesses. The Digital Omnibus package delays stricter oversight for high-risk AI until 2027 and permits the use of anonymised personal data for model training.
The reforms amend the AI Act and several digital laws, cutting cookie pop-ups and simplifying documentation requirements for smaller firms. EU tech chief Henna Virkkunen says the aim is to boost competitiveness by removing layers of rigid regulation that have hindered start-ups and SMEs.
US tech lobby groups welcomed the overall direction. Still, they criticised the package for not going far enough, particularly on compute thresholds for systemic-risk AI and copyright provisions with cross-border effects. They argue the reforms only partially address industry concerns.
Privacy and digital rights advocates sharply opposed the changes, warning they represent a significant retreat from Europe’s rights-centric regulatory model. Groups including NOYB accused Brussels of undermining hard-won protections in favour of Big Tech interests.
Legal scholars say the proposals could shift Europe closer to a more permissive, industry-driven approach to AI and data use. They warn that the reforms may dilute the EU’s global reputation as a standard-setter for digital rights, just as the world seeks alternatives to US-style regulation.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
