Digital Omnibus: Europe must move fast to unlock investment
The European Commission’s Digital Omnibus proposals have sparked lively debate in Brussels. Some critics are quick to frame the initiative as Europe retreating under external pressure, particularly from the United States. That reading misses the point. In our view, the Digital Omnibus is about strengthening Europe’s ability to compete. Precisely for that reason, the proposed simplification measures should be more ambitious, as the current package remains relatively moderate.
For European technology-intensive industries, the need to simplify the EU’s digital rulebook has been evident for some time: the level of digital investments and use of data and AI in European industries are lagging our competitors. Burdensome and unclear requirements—often cumulative, sometimes overlapping—across the AI Act, the Data Act, the GDPR and cybersecurity legislation have created legal uncertainty, high compliance costs and—most importantly—delayed deployment of new solutions.
Burdensome and unclear requirements have created legal uncertainty, high compliance costs and—most importantly—delayed deployment of new solutions.
The Digital Omnibus responds to an urgent call from European industry to fix these issues so that Europe can innovate, deploy and scale faster.
What co-legislators should prioritise?
Technology Industries of Finland highlights several priorities to ensure the Omnibus delivers real simplification.
First, the AI part of the Omnibus is not so much about simplifying an already complex framework as it is about facilitating standardised compliance. Timelines under the AI Act must become predictable. The proposed stop-the-clock measures should be fast-tracked and adopted swiftly to provide legal certainty well before key requirements apply. For high-risk AI systems, fixed and realistic application dates are essential to replace moving targets that undermine investment and compliance planning.
Second, simplification must be consistent. Transparency obligations under the AI Act should come with adequate and aligned grace periods for both providers and deployers, reflecting the reality that guidance will only arrive shortly before the rules apply.
Third, high-risk AI requirements should be better integrated into existing sectoral legislation. Embedding AI rules into established conformity frameworks, rather than layering parallel systems on top, would reduce fragmentation and ease implementation across regulated industries.
Beyond AI, the Omnibus should also strengthen Europe’s data economy. Under the Data Act, manufacturers should have a clear right to reuse and share data generated by connected products they have placed on the market, at least for core operational, safety and innovation purposes. Clearer definitions, including around placing on the market for legacy product types, would further reduce uncertainty for businesses operating long product cycles.
On the GDPR, a risk-based approach should be reinforced and clearer guidance provided on the use of industrial datasets that may contain limited elements of personal data. Clarifying the definition of personal data would offer a stronger basis for a genuinely risk-based European approach, easing compliance burdens where risks are low. At the same time, efforts to support AI model development should remain technology-neutral and predictable.
Finally, cybersecurity reporting must become genuinely streamlined. A true single-entry point, harmonised reporting templates and aligned timelines across regimes would free up resources for incident response instead of administrative burden.
A test Europe cannot afford to fail
As Mario Draghi has noted, unpredictable and hard-to-apply regulation has contributed to Europe’s widening digital gap. The Commission’s own Digital Decade Report shows that European companies are lagging in the uptake of data and AI. In our view, the Digital Omnibus should focus on enabling and incentivising private digital investment across the European economy. That is a precondition to start closing the digital gap. For this reason, it is crucial to adopt these proposals swiftly. We have no time to lose in kick-starting a virtuous cycle of investment and service development.
More information
Mäkinen Jussi
Deputy Director, EU and Public Affairs – Public Affairs Technology Industries of Finland