Thanks to the European Commission's new package of laws governing the digital environment, European businesses, from factories to start-ups, will spend less time on administrative work and compliance, leaving them more time to focus on innovation and on expanding their operations. This initiative opens up opportunities for European businesses to grow and to retain their leading position in technology, while at the same time promoting the introduction of Europe's highest standards for the protection of fundamental rights, data protection, security and fairness.
At its core is the digital Omnibus package of laws, which streamlines the rules on artificial intelligence (AI), cybersecurity and data. It is complemented by the Data Union Strategy, which makes it possible to obtain high-quality data for AI purposes, and by the European Business Wallets, which will allow companies to build a single digital identity and, accordingly, to simplify paperwork and the carrying out of transactions across all EU member states.
The aim of the legislation is to make compliance requirements easier to meet as part of the simplification effort, and according to estimates it will make it possible to save up to 5 billion euros in administrative costs by 2029. In addition, by using the European Business Wallets, companies could save a further 150 billion euros each year.
The package of laws governing the digital environment Omnibus
The Omnibus put forward by the Commission proposes to simplify the existing rules on artificial intelligence, cybersecurity and data.
Innovation-friendly AI rules. The AI Act will, if implemented effectively, have a positive impact on society, on security and on fundamental rights alike. Guidance and support are essential in introducing any new piece of legislation, and this applies to the AI Act too.
The Commission proposes to link the start of the application of the rules governing high-risk AI systems to the availability of support tools, including the necessary standards.
The timetable for applying the high-risk rules has been adjusted so that it does not exceed 16 months; the rules will begin to apply as soon as the Commission has confirmed the availability of the necessary standards and support tools, which will provide businesses with the support tools they need.
The Commission is also proposing targeted amendments to the Artificial Intelligence Act which will:
o extend certain simplifications that already applied to small and medium-sized enterprises (SMEs) and small mid-cap companies (SMCs), including simplified technical documentation requirements, thereby saving at least 225 million euros a year;
o broaden compliance measures so that more innovators can make use of "regulatory sandboxes", including an EU-level "sandbox" from 2028 and testing in real-world conditions, particularly in key sectors such as the automotive industry;
o strengthen the powers of the AI Office and centralise the supervision of AI systems based on general-purpose AI models, reducing fragmentation in governance.
Simplified reporting on the cybersecurity situation. The Omnibus also introduces a single point of contact through which companies can fulfil all their incident reporting obligations. At present, companies have to report cybersecurity https://eur-lex.europa.eu/legal-content/EN/TXT/Digital Operational Resilience Act https://eur-lex.europa.eu/legal-content/EN/TXT/To ensure that the interface is reliable and effective, https://eur-lex.europa.eu/legal-content/EN/TXT/will involve stringent security measures and it will be tested comprehensively.
An innovation-friendly privacy framework. Targeted amendments to the GDPR will align, clarify and simplify certain rules in order to foster innovation and help businesses achieve compliance, while at the same time the GDPR will not be changed in substance and the protection of personal data will be ensured at the highest level.
Modernising the cookie rules to improve the online user experience. The amendments will reduce the number of pop-up cookie banners and will allow users to give their consent with a single click and to save their cookie settings using central settings in browsers and in the operating system.
Improved access to data. The package of laws governing the digital environment aims to improve access to data, one of the main drivers of innovation; it simplifies the data rules and makes them workable in practice for consumers and businesses:
o it consolidates the EU data rules under the Data Act, merging four pieces of legislation and thereby achieving greater legal clarity;
o it introduces targeted exemptions from certain provisions of the Data Act on switching cloud service provider, which will allow small and medium-sized enterprises (SMEs) and small mid-cap companies (SMCs) to make a one-off saving of around 1.5 billion euros;
o it proposes new guidance on how to achieve compliance with the Data Act through model contractual terms on data access and data use and through standard contractual clauses in cloud computing contracts;
o it strengthens European AI companies by providing access to high-quality, recently obtained datasets for use in building AI tools, thereby fostering the innovation potential of businesses across the European Union.
The Data Union Strategy
The new Data Union Strategy includes further measures which, by widening access to data laboratories for example, will help to obtain more high-quality data for AI purposes. Complementing other measures intended to support the implementation of the Data Act, the strategy also establishes a Data Act Legal Helpdesk. It also strengthens Europe's data sovereignty through a strategic approach to international data policy: a toolkit for preventing data leakage, measures to protect sensitive non-personal data, and guidance on how to assess whether EU data is treated fairly in third countries.
The European Business Wallet
This proposal gives European businesses and public sector bodies the chance to use a single digital tool with which they will be able to digitalise transactions and interactions that often still have to be carried out in person. Companies will be able to sign documents digitally and apply time stamps and company seals to them; to create, store and exchange verified documents securely; and to communicate securely with other companies or with public administration bodies in their own country and in the other 26 member states.
For businesses in the European Union, expanding into other member states, paying taxes and dealing with public authorities will be easier than ever before. Assuming that the European Business Wallets are widely used, they will allow European businesses to cut administrative procedures and costs and thereby to save up to 150 billion euros a year.
Note: a set of several interrelated legislative acts, regulatory documents and proposals is also referred to as a package.
Further information (in English): Simpler EU digital rules and new digital wallets to save billions for businesses and boost innovation