EU Digital Omnibus reform sparks debate over privacy and deregulation

The European Union is currently processing the Digital Omnibus, a legislative package designed to amend various digital laws, including the General Data Protection Regulation (GDPR), the Data Act, and the AI Act. While the European Commission states the reform aims to simplify regulations and save businesses up to 5 billion euros in administrative costs by 2029, critics argue the package serves to deregulate privacy protections.

Advocacy group noyb has launched a grading system for Members of the European Parliament (MEPs) to track how their proposed amendments affect privacy. The group claims that lobby efforts from Big Tech and AI companies are influencing the process to create loopholes, such as limiting the scope of the GDPR or allowing the use of personal data for AI without explicit consent.

The Digital Omnibus consists of two primary tracks: one focusing on data, privacy, and cybersecurity, and another specifically addressing the AI Act. While the AI-related text has moved toward becoming law, the data-focused text remains in the legislative process.