EU eases AI, privacy rules as critics warn of caving to Big Tech

The European Union on Wednesday unveiled new proposals to simplify AI and privacy regulations, drawing fire from the tech sector for not going far enough and consumer groups for bowing to Big Tech.

The EU Commission's “Digital Omnibus”, which faces debate and votes from European countries, proposed to delay stricter rules on use of AI in “high-risk” areas until late 2027, ease rules around cookies and enable more use of data.

Europe is scrabbling to balance tough rules with not losing more ground in the global tech race, where companies in the United States and Asia are streaking ahead in artificial intelligence and chips.

“Europe has not so far reaped the full benefits of the digital revolution,” said EU economy commissioner Valdis Dombrovskis. “And we cannot afford to pay the price for failing to keep up with demands of the changing world.”

The proposal would see tougher rules on AI delayed from August 2026 to December 2027 for use in sensitive areas like biometric identification, utilities supply, health, creditworthiness and law enforcement.

The Commission aims to clarify when data stops being “personal” under privacy law, potentially making it easier for tech companies to use anonymous information from EU citizens for AI training.

Proposed changes would also allow Alphabet's Google, Meta, OpenAI and others to use Europeans' personal data to train AI models. Many companies, including Europe's Siemens and SAP, have called for revision of AI rules to make things easier.

Meanwhile, the Trump administration has regularly criticised EU regulations and said it was targeting US firms, charges which the Commission had rejected.

“The Commission appears to be aiming for simpler, more predictable rules that reduce friction for innovators while keeping core EU safeguards intact,” Ahmed Baladi, partner at law firm Gibson Dunn and an expert in AI and tech regulations, told Reuters.

The Omnibus or simplification package covers the AI Act which became law last year, privacy legislation known as the General Data Protection Regulation (GDPR), the e-Privacy Directive and the Data Act, among others.

Too much or too little?

Changes to the AI Act include exempting companies from registering AI systems in an EU database for high-risk systems if these are only used for narrow or procedural tasks.

Consent for pop-up cookies would also be simplified.

The proposals would need approval by EU countries and privacy-focused members of the European Parliament before implementation.

Lawmaker Brando Benifei, who led negotiations on AI rules, said on Tuesday that the European Parliament must continue defending citizens' digital rights.

Tech lobbying group CCIA Europe, whose members include Alphabet, Meta and Apple, said the move was a welcome step but that “bolder action was still needed.” The AFME financial services sector body also said the moves were positive but fell short.

“There will be many stakeholders who are saying that this is not enough,” EU antitrust chief Henna Virkkunen told reporters, adding that Europe had indeed fallen behind on technology and innovation. “And some say maybe that there's too much, so I think that we have a balanced package.”

Privacy activists such as noyb and civil rights groups see the amendments as a dilution of regulations.

“Now all your data is shoved into the algorithms of Meta, Google or Amazon. This makes it easier for AI systems to know even the most intimate details – and consequently manipulate people,” noyb's Max Schrems said.

It is disappointing to see the European Commission cave under the pressure of the Trump administration and Big Tech lobbies.

Kim van Sparrentak.

An open letter from a group of 127 civil organisations called the proposals “the biggest rollback of digital fundamental rights in EU history.”

And on Wednesday, a group of campaigners deployed four mobile billboards around Brussels, alongside hundreds of posters across the city, urging Commission President Ursula von der Leyen to stand up to Big Tech and US President Donald Trump.

“It is disappointing to see the European Commission cave under the pressure of the Trump administration and Big Tech lobbies,” Dutch MEP Kim van Sparrentak said in a statement.

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