Commission publishes Digital Omnibus proposal
The European Commission has officially published its comprehensive digital package aimed at reducing administrative burdens for businesses across Europe, allowing them to focus more on innovation and growth. Notably, a leaked version of the proposal was revealed two weeks prior, highlighting the package’s key features before its official announcement.
This initiative simplifies rules related to artificial intelligence (AI), cybersecurity, and data protection, while promoting Europe’s high standards for fundamental rights, data privacy, and fairness. The package includes a digital omnibus, a Data Union Strategy, and the introduction of European Business Wallets to streamline compliance and cross-border operations within the EU.
The digital omnibus proposes important adjustments to the AI Act, including extending simplifications for small and medium-sized enterprises (SMEs) to small mid-cap companies, which could save these businesses around €225 million annually. It also introduces a single-entry point for cybersecurity incident reporting, harmonizes and simplifies certain GDPR provisions to support innovation, and modernizes cookie consent rules to improve user experience. Additionally, the package consolidates data laws under the Data Act, providing clearer guidance and exemptions that could save SMEs and small mid-cap companies approximately €1.5 billion in one-off costs.
The Data Union Strategy enhances access to high-quality data for AI development and strengthens Europe’s data sovereignty through international policy tools and protections for sensitive non-personal data. This strategy also establishes a Data Act Legal Helpdesk to support businesses in complying with new data regulations. Together, these measures aim to unlock significant innovation potential and ensure fair treatment of EU data globally.
The European Business Wallet will provide companies with a single digital identity to simplify administrative processes, including document signing, storage, and communication with public authorities across all 27 EU Member States. This tool is expected to reduce administrative costs by up to €150 billion annually, making it easier for businesses to operate and scale across borders. The legislative proposals are now under review by the European Parliament and Council, alongside a public consultation on the Digital Fitness Check, which will assess the effectiveness and coherence of the EU’s digital rules.