European Commission Launches Digital Omnibus to Simplify AI and GDPR Rules

The European Commission launched a "digital omnibus" simplification package on November 19, 2025, designed to reduce administrative burdens for businesses complying with the EU AI Act and GDPR. The initiative aims to save companies approximately €5 billion in costs by 2029 and introduces a European Business Wallet to facilitate cross-border expansion. Key measures include delaying the implementation of high-risk AI system rules from August 2026 to December 2027 and expanding regulatory exceptions for small and medium-sized businesses.

These changes follow intense lobbying from American tech giants and pressure from the Donald Trump administration, which warned of tariffs on countries with discriminatory tech regulations. Leaked drafts and the final proposal indicate a shift toward prioritizing competitiveness, such as allowing AI developers to use "legitimate interest" to train models on personal data without explicit consent and moving cookie tracking from an opt-in to an opt-out model to reduce "cookie fatigue."

The proposal has sparked significant backlash. Privacy advocates and lawmakers argue the moves erode fundamental digital rights and primarily benefit large U.S. firms. Conversely, the Commission maintains that these targeted amendments remove regulatory clutter to ensure Europe remains competitive against the U.S. and China. Any final changes to the AI Act and GDPR must be approved by the European Parliament and a majority of EU member states.