Europe is Dismantling Its Own Rulebook to Compete with America April 13, 2026 - 7:41 am On 19 November 2025 , the European Commission published its Digital Omnibus package-a legislative proposal that seeks to amend several key pieces of AI and data legislation in one go. The text repeatedly emphasizes "simplification" , a term chosen carefully by the Commission. While seemingly uncontentious, these proposed changes have sparked significant debate, with civil society groups warning of a substantial rollback of digital rights.
The Proposed Changes The Omnibus package suggests: Delaying the AI Act's core obligations for high-risk systems by up to 16 months . Creating a new legitimate interest basis under the GDPR for companies training AI models on personal data. Narrowing the definition of personal data itself.
Removing the requirement for AI providers and deployers to ensure staff AI literacy. The EU Tech Landscape The Commission argues that these changes are necessary to improve competitiveness, suggesting that excessive regulation hinders European tech growth. However, anue Bradford, a professor at Columbia Law School , challenges this notion in her 2024 paper published in the Northwestern University Law Review.
She argues that fundamental structural issues within the EU, such as the absence of a digital single market and immigration policies that make it difficult to attract global talent, are more significant barriers to European tech success than regulatory stringency. The Evidence Bradford's points are supported by the State of European Tech 2025 report , which reveals: US startups attract funding at approximately 0.74% of GDP, compared to 0.35% in the UK and Ireland-the highest performers among European countries. The EU missed the digital revolution, with a widening productivity gap compared to the United States.
These findings suggest that while regulatory environment may play a role, it is not the primary factor hindering European tech's global competitiveness.