As the European Union scrambles to revive its competitive edge and slash layers of regulation, the bloc's executive has now turned its sights on one of its most powerful and pioneering assets - the digital rulebook.

In said proposal for the so-called Digital Omnibus unveiled on Wednesday, the European Commission envisages wide-ranging plans to simplify some of the European Union's digital regulations amid pressure from the bloc's member states and tech companies.

On Tuesday, German Chancellor Friedrich Merz and French President Emmanuel Macron echoed the tech industry's demands during a summit on European digital sovereignty in Berlin, and called for less stringency in European digital regulations.

Slovenia's Minister for Digital Transformation, Ksenija Klampfer, also addressing the summit, called for Europe to boost the development of its own digital solutions. 'Only with clear standards, smart investments, and effective protection of citizens will we ensure true digital sovereignty,' she said.

The package foresees changes to existing EU digital laws and focuses particularly on legislation in the areas of data protection, cybersecurity, and artificial intelligence (AI).

'Our rules should not be a burden, but an added value,' said Henna Virkkunen, Vice-President of the Commission responsible for digital affairs, at a press conference. 'For this, we need immediate steps to get rid of regulatory clutter,' the Finnish Commissioner said.

'By simplifying rules, reducing administrative burdens, and introducing more flexible and proportionate rules, we will continue delivering on our commitment to give EU businesses more space to innovate and grow,' said EU Economy Commissioner Valdis Dombrovskis. 'Closing the innovation gap and cutting red tape are key drivers to boost the EU's productivity,' he said.

Overall, the Commission has set itself the goal of reducing administrative burdens by at least 25 percent, and also by at least 35 percent for small and medium-sized enterprises (SMEs), by the end of 2029.

The Czech Republic's outgoing Minister of Industry and Trade, Lukáš Vlcek, welcomed the Commission's proposals, praising that his ministry's 'long-term efforts to simplify digital legislation have been reflected in concrete measures that will make it easier to do business, support innovation and strengthen the competitiveness of Czech companies'.

Bulgarian MEP Eva Maydell, the European People's Party (EPP) Group vice spokeswoman in the Parliament's Industry Committee, said: 'Europe cannot afford a digital rulebook that drains time, talent, and opportunity. The Digital Omnibus is our chance to make laws work like a jigsaw: efficient, consistent, and agile.'

The proposals have however triggered criticism from data protection and consumer protection advocates.

The Commission now has to discuss its proposal with the Parliament and with the Council.

Here's what to watch out for:

Fewer cookie banners, less control?

On data protection, the Commission proposes changes to the General Data Protection Regulation (GDPR) which has been in effect since 2018.

The proposal aims to modernise the rules on cookies - small data files created by a web server while a user is browsing a website and stored on the user's device - to improve the online user experience.

The GDPR currently obliges operators of online shops or digital platforms to obtain consent from customers or users before processing their personal data, prompting the use of cookie consent banners on many websites.

Under the plans, cookie consent banners should appear less frequently while browsing the internet with certain activities no longer requiring consent. Users should be able to give their consent and save their cookie settings with a single click via central preferences in browsers and operating systems.

Data protection and consumer advocates however have expressed concern that relaxing rules could be seen as yielding to the tech lobby.

More than 120 civil society and rights organisations warned against weakening citizens' rights in an open letter to the Commission. 'Unless the European Commission changes course, this would be the biggest rollback of digital fundamental rights in EU history,' the group said. EU digital rules are the most important line of defence against digital exploitation and surveillance by domestic and foreign actors, the letter said.

Austrian data protection activist Max Schrems in a statement called the Commission's proposals 'the biggest attack on Europeans' digital rights in years'.

AI Act pushed back

The EU's Artificial Intelligence Act (AI Act) is also affected by the proposed amendments even before it is fully implemented by EU member states.

The EU AI Act entered into force in August 2024 and is due to become fully applicable in August 2026. It extensively regulates the obligations that companies offering AI tools like ChatGPT (OpenAI), Gemini (Google), and others have regarding the training of their models.

However, the Commission now wants to give the sector up until the end of 2027 to comply with requirements for high-risk systems - artificial intelligence that affects sensitive areas such as security, health and fundamental rights.

In addition, smaller AI companies are to benefit from simplified regulations regarding technical documentation.

The Commission is also introducing a new legal basis for using personal data to train AI models. By invoking 'legitimate interest', companies could feed their AI models during training or testing phases without seeking explicit consent from users, provided they don't override the 'interests or fundamental rights and freedoms' of users.

Digital rights organisations speak of a 'serious backlash against privacy' conceived not in the interests of the EU, but of the technology giants.

Italian MEP Brando Benifei (S&D), rapporteur for the AI ??Act in the European Parliament, has warned that some of the proposed changes to the law could end up being 'a huge favour to big tech'.

Since the rise of artificial intelligence, those tech players have repeatedly expressed concerns that European regulations are too restrictive.

However, 'simplification does not mean softening our safeguards', EU Commissioner Virkkunen said. 'We stand firmly behind our high standards for privacy, fairness and security.'

EU vs. Big Tech saga continues

In an ongoing stand-off with Brussels, major tech giants - including Google and Meta, the US parent company of Facebook, Instagram and WhatsApp, as well as Chinese social media platform TikTok - are closely watching the EU's moves.

They have previously called EU rules contradictory and anti-competitive and some have faced heavy EU fines in the face of alleged non-compliance with the bloc's digital rules.

Former EU Internal Market Commissioner Thierry Breton, architect of the AI Act, accused Washington of being behind attempts to dismantle the EU's digital laws. 'Let's not be useful idiots,' the French politician warned.

In October, the Commission preliminarily found Meta's platforms and TikTok in breach of their transparency obligations under the Digital Services Act (DSA) - the EU's content moderation law repeatedly under attack from US President Donald Trump's administration.

The DSA aims to regulate the functioning of online platforms and increase the safety of internet users in the EU. It intends to provide greater protection against illegal content and abuses by big tech companies, as well as to ensure greater transparency in the operation of algorithms and content moderation.

In April, the Commission fined Apple 500 million Euro for failing to inform and steer users to alternative offers outside the App Store. At the same time, it fined Meta 500 million Euro for its 'Consent or Pay' advertising model. Both fines were issued under the Digital Markets Act (DMA), which aims to create a fairer and more competitive digital market.

Brussels has also slapped multiple fines on Google in recent years under its anti-trust rules. It fined the giant 4.1 billion Euro in 2018 for abusing the market dominance of its Android operating system, and in 2017 issued a 2.4-billion-Euro fine for anti-competitive practices in the price comparison market.

In September, the Commission hit Google with another 2.95-billion-Euro antitrust fine for favouring its own services, giving the company 60 days to resolve the issues raised.

The online giant not only sells advertising on its own websites and apps, but also acts as an intermediary for firms wanting to place ads elsewhere to appear on mobile and computer screens - which Brussels says made it harder for rivals to compete.

Google said its plan included immediate product changes such as giving publishers the option to set varying minimum prices for different bidders when using Google Ad Manager. And to address the EU's accusations of conflict of interest, Google said it would increase the interoperability of its tools for publishers and advertisers.

The penalty drew an angry rebuke from President Trump, who threatened fresh tariffs on the EU if it was confirmed. Google has said it will appeal the fine.

Trump has repeatedly threatened to impose tariffs on countries with regulations that seek to 'harm' American technology.

The months ahead could set the tone for future EU digital regulation and reveal whether Europe's attempt at simplification strengthens its digital sovereignty at home, fuels tensions with global tech giants, or caves to US demands.

The content of this article is based on reporting by AFP, ANSA, BTA, CTK, dpa, HINA, PAP, STA, as part of the European Newsroom (enr) project. AGERPRES (editing by: Simona Klodnischi)