BRUSSELS — Europe’s most famous technology law, the GDPR, is next on the hit
list as the European Union pushes ahead with its regulatory killing spree to
slash laws it reckons are weighing down its businesses.
The European Commission plans to present a proposal to cut back the General Data
Protection Regulation, or GDPR for short, in the next couple of weeks. Slashing
regulation is a key focus for Commission President Ursula von der Leyen, as part
of an attempt to make businesses in Europe more competitive with rivals in the
United States, China and elsewhere.
The EU’s executive arm has already unveiled packages to simplify rules around
sustainability reporting and accessing EU investment. The aim is for companies
to waste less time and money on complying with complex legal and regulatory
requirements imposed by EU laws.
The GDPR is seen as one of Europe’s most complex pieces of legislation by the
technology sector — and by businesses far and wide beyond tech — for how it
forces companies doing business in Europe to manage their data and to handle the
requests and rights of data subjects to that personal data. Its introduction in
2018 drew a deluge of desperate emails from firms asking for people’s consent to
use their data.
Seven years later, Brussels is taking out the scissors to give its (in)famous
privacy law a trim.
There are “a lot of good things about GDPR, [and] privacy is completely
necessary. But we don’t need to regulate in a stupid way. We need to make it
easy for businesses and for companies to comply,” Danish Digital Minister
Caroline Stage Olsen told reporters last week. Denmark will chair the work in
the EU Council in the second half of 2025 as part of its rotating presidency.
The criticism of the GDPR echoes the views of former Italian Prime Minister
Mario Draghi, who released a landmark economic report last September warning
that Europe’s complex laws were preventing its economy from catching up with the
United States and China. “The EU’s regulatory stance towards tech companies
hampers innovation,” Draghi wrote, singling out the Artificial Intelligence Act
and the GDPR.
For small and cash-strapped businesses, the reams of documentation the GDPR asks
companies to produce has long been a gripe. Justice Commissioner Michael McGrath
said the key takeaway from a review of the GDPR last summer “is the need for
greater support [for] businesses, especially SMEs, in their compliance
efforts.”
McGrath confirmed last week that a proposal to simplify the GDPR is due in the
“coming weeks.” The Commission had planned to agree on a so-called
simplification package for small and medium-sized businesses on April 16,
according to the Commission’s diary, but that date has since been bumped to May
21.
A Commission official, granted anonymity to discuss ongoing planning, told
POLITICO that the date is “only indicative” and that it has not been decided
whether the GDPR will feature in the package — but that the proposal to simplify
privacy rules will definitely be delivered “by June.”
Justice Commissioner Michael McGrath said the key takeaway from a review of the
GDPR last summer “is the need for greater support [for] businesses, especially
SMEs, in their compliance efforts.” | Martin Bertrand/Hans Lucas/AFP via Getty
Images
The Commission said previously that the simplification plan will focus on
reporting requirements for organizations with less than 500 people, but will not
touch the “underlying core objective of [the] GDPR regime.”
Adjustments could include limiting requirements to keep records of data
processing activities, or reforming how businesses provide data protection
impact statements — two rules seen as overly cumbersome to smaller firms.
PANDORA’S BOX OF LOBBYING
The GDPR was a landmark piece of legislation when it took effect in 2018 and has
been heralded as an example of the Brussels Effect, having set an international
standard for the protection of personal data.
Negotiations on the privacy law triggered one of the biggest lobbying efforts
Brussels had ever seen. Tech companies beefed up their Brussels operations and
poured millions into trying to influence the rules during the drafting process.
The proposal drew over 3,000 amendments in the European Parliament — a record.
The danger in the EU’s revising the law is that it could start a lobbying war
between Big Tech companies and privacy advocates, two of the strongest public
affairs forces in Brussels.
Some fear that if the GDPR is called into question, the law could crumble under
the lobbying pressure. “Reopening the GDPR for simplification is risky, no
matter how well-intentioned and targeted the proposal may seem,” said Itxaso
Domínguez de Olazábal, policy advisor at digital rights group EDRi.
The EU is already finalizing a new law on the procedural rules for privacy
regulators to coordinate on major GDPR cases.
According to Austrian privacy activist Max Schrems, the GDPR is still a “huge
target” for lobbyists, but its core rules can’t easily be scrapped since the
protection of personal data is enshrined in the EU’s Charter of Fundamental
Rights as an inalienable freedom.
“A Court of Justice would annul a GDPR that doesn’t have these core elements,”
Schrems said. “So if it’s where [lobbyists] want to spend their energy, be my
guest, but they’re not going to get there.”
Pieter Haeck contributed reporting.