Europe in a panic - Disorderly retreat for the benefit of Big Tech, fierce reactions

The Commission's proposed sweeping cuts to EU digital laws, aimed at boosting competitiveness, are likely to harm both fundamental rights and the Union's competitiveness itself, according to analysts cited by Euractiv.
The "digital omnibus," announced on Wednesday, includes proposals to delay most of the flagship EU AI Act, as well as a series of changes to the EU privacy law to allow companies to more easily use personal data for training artificial intelligence systems.
"Europe is willing and capable of fully adapting to embrace the digital age," said the Commissioner for Simplification, Valdis Dombrovskis.

Intense reactions

Privacy activists reacted with expected fury. Signs urging Ursula von der Leyen to put Europeans above American tech CEOs were lined up outside the Commission's headquarters throughout Wednesday.
"This is the biggest attack on the digital rights of Europeans in years," said activist Max Schrems, calling it a "panic reaction."
The simplification effort is being promoted as a growth strategy for European artificial intelligence, but analysts are divided on whether the cuts will be effective.
"If this is about competitiveness, this certainly doesn't help," said Mario Mariniello from Bruegel, a Brussels-based think tank. The move increases uncertainty, endangers human rights, and benefits American companies at the expense of European ones, Mariniello added.
According to Giulia Torchio from the European Policy Centre, there is much room for improvement in the digital rules, but the hurried approach will cause "negative uncertainty."
"I don't see consistency or strategy," Torchio stressed.
The Commission repeatedly cited Mario Draghi, the former Prime Minister of Italy, whose report last year called Europe's low productivity an "existential threat." Draghi has since called for "radical simplification" of the GDPR and faster adoption of artificial intelligence.
Torchio said the Commission is hiding behind Draghi as if he were some kind of Messiah. "They are following him like Forrest Gump," Mariniello noted.

A dissenting school of thought

However, not everyone shares the concerns of Torchio and Mariniello.
"There was already uncertainty in the GDPR from the beginning," said Bertin Martens, also from Bruegel.
"These changes, they will create a level regulatory playing field again, so everyone knows what the rules are," he added.

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