The European Commission on Wednesday unveiled plans to ease tech rules, arguing that a loosening of red tape could give Europe’s high-tech sector the breathing room to compete with global rivals.
Brussels boasts world-leading legislation on data privacy and artificial intelligence, but those efforts have drawn growing criticism – not only from Washington under President Donald Trump, but also from EU member states' governments and European businesses worried the bloc has overcorrected and risks inhibiting innovation as a result.
On Wednesday, the European Commission – the EU's executive branch – unveiled a "digital simplification package" of proposals that would relax certain rules on AI and data privacy.
However, the Commission insists it is not bowing to outside pressure. Instead, officials say the aim is to make life simpler for companies across the 27-nation bloc while maintaining Europe’s reputation for strong rights protections.
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Three key points
Brussels is proposing a trio of changes aimed at easing pressure on the tech sector. Companies would gain more freedom to use datasets – including certain types of personal data – to train AI models when it is “for legitimate interests”.
They would also be given extra time – up to 16 months – to comply with rules governing "high-risk" AI systems.
The commission also wants to cut down the flood of cookie banner pop-ups, insisting this can be done without putting privacy at risk.
“We have talent, infrastructure, a large internal single market. But our companies, especially our start-ups and small businesses, are often held back by layers of rigid rules,” EU tech chief Henna Virkkunen said.
Rights groups and some lawmakers now fear the bloc is retreating from its role as a leading watchdog. In Brussels on Wednesday campaigners from groups including People vs Big Tech drove through the city with giant billboards urging EU chief Ursula von der Leyen to stand up to Trump and the tech industry – and defend the bloc’s digital rulebook.
Striking a balance
The Commission argues this new approach could help European firms catch up with their competitors in the United States and China, while also reducing reliance on foreign tech giants.
The EU’s wide-ranging AI law came into force last year – a first of its kind globally – but prompted swift backlash from major European companies, including Airbus, Lufthansa and Mercedes-Benz.
They warned that strict new requirements risk stifling innovation. Brussels eventually agreed to delay the rollout of rules governing “high-risk” AI systems, including those that could threaten safety, health or fundamental rights.
Bowing to pressure, EU set to relax AI, privacy rules
On cookies, one EU official said the revamp is designed to tackle public “fatigue” with consent pop-ups and reduce the number of times they appear.
Under the proposal, users would be able to express their preferences with a single click and store them via browser or operating-system settings.
The Commission has stressed that data privacy will remain firmly protected.
“It is essential that the European Union acts to deliver on simplification and competitiveness while also maintaining a high level of protection for the fundamental rights of individuals – and this is precisely the balance this package strikes,” EU justice commissioner Michael McGrath said.
(with newswires)
