Credit: Cheryl Gerber/Invision EU leaders are discussing a new Digital Omnibus legislation package to boost the Union’s digital competitiveness by rationalizing complex regulations, like the GDPR and AI Act.
There’s a deep theological rift between those who see the Omnibus legislation as a much-needed business lifeline and its opponents who condemn it as an erosion of hard-worn EU digital rights.
The European Commission’s proposal, a “first step to optimize the application of digital rulebook,” will “ensure that compliance with the rules comes at a lower cost, delivers on the same objectives, and brings in itself a competitive advantage to responsible businesses,” by targeting technical amendments, according to the EU’s official website.
The EU’s digital rights movement has severely fractured the foundation of the Union’s stance on technological regulations.
Europe’s General Data Protection Regulation (GDPR) alone raised data costs by almost 20% for EU companies. The Artificial Intelligence Act is “another source of uncertainty.”
Privacy activists, alongside other state members, see the Omnibus legislation as a threat to fundamental rights that created loopholes in data protection and postponing AI safeguards.
Omnibus Only Favors EU Companies
The Omnibus Act is a key step in the right direction and contains technical amendments to digital laws, intended to mitigate expenditures on firms while upholding safety requirements.
“Simplifying the General Data Protection Regulation (GDPR) remains one of the clearest demands among European companies,” said Mario Draghi, citing the drive for digital law reforms in the region.
The European Central Bank (ECB) President, Christine Lagarde, says the GDPR had increased the cost of data by 20% for firms in the EU as opposed to those in the US.
There are also European businesses whose problems include fragmented digital laws and legislation, high costs of compliance, and limited access to capital. The policy of Omnibus is viewed as a start, but definitely not an endpoint.
In a letter that has recently circulated from AI Chamber and other partners across Europe, policymakers are urged to take advantage of what is possible in this Omnibus legislation, as well as thinking about what comes next.
All in the Name of AI Regulation
Although there is business support, there are concerns regarding possible risks expressed by privacy experts. According to Alessandro Malgieri, the EU Omnibus Directive might have a negative impact on current data protection since personal data might be processed in a different manner depending on the capabilities as determined by the controller. And there might be automated decisions in banking, insurance, and education.
Regarding AI, digital Omnibus would put off legally mandated protections for high-risk computers, reduce required AI literacy for developers, but also authorize sensitive data for de-biasing.
Gianclaudio Malgieri, Associate Professor of Law & Technology at eLaw emphasizes that these provisions must be strictly conditioned by necessity tests, strong technical and organizational security measures, an end to transfers, expedient deletion, and full documentation.
The proposal also relates to any digital competition law in Europe.
European digital privacy laws are in pursuit of harmonizing the legislation for better competitiveness. In conclusion, while the Omnibus legislation seeks to enable competitiveness of businesses within the EU in the digital platform, there is a need to balance innovation with the aspect of privacy.
As negotiations move to the Council and the European Parliament, the EU faces the challenge of fostering competitiveness without compromising its rights-based approach to EU digital legislation.
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