Europe has the ambition. The Digital Omnibus must match it

2026-05-26 · Source: Sifted · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation, Cybersecurity & Data Privacy · Depth: Intermediate, quick

Summary

European AI and technology founders, including Johannes Schildt (Kry/Livi) and Markus Villig (Bolt), issued an open letter on May 26, 2026, urging the EU to enact substantial regulatory reform to match Europe's technological ambition. They contend that the current regulatory framework, particularly the General Data Protection Regulation (GDPR) and the ePrivacy Directive, imposes an excessive compliance burden on European startups and scaleups, hindering their global competitiveness. The founders criticize the overly broad interpretation of "personal data" under GDPR, which impedes AI training and innovation, and warn that proposed amendments within the EU's "Digital Omnibus" are insufficient. They advocate for a genuinely risk-based framework and simplification, rather than creating new layers of fragmentation like the proposed browser-level cookie consent mechanism.

Key takeaway

For Policy Makers drafting digital regulations, you must ensure reforms genuinely simplify compliance and adopt a risk-based approach to data governance. Failing to address the overly broad definition of personal data and fragmented consent regimes will continue to stifle European AI innovation and drive capital and talent to other regions. Prioritize bold, structural changes within the Digital Omnibus to foster a competitive environment for startups and scaleups.

Key insights

Europe's digital regulations, especially GDPR, impede tech innovation and competitiveness due to excessive compliance burdens.

Principles

• Regulatory frameworks must be genuinely risk-based.
• Overlapping digital regulations create unnecessary complexity.
• Data access is an immediate economic necessity for AI.

In practice

• Re-evaluate "personal data" definitions for AI training.
• Streamline GDPR and ePrivacy Directive rules.
• Prioritize risk-based compliance frameworks.

Topics

• European Regulation
• GDPR Reform
• ePrivacy Directive
• AI Innovation
• Digital Omnibus
• Startup Competitiveness

Best for: CTO, VP of Engineering/Data, Director of AI/ML, Policy Maker, Entrepreneur, Legal Professional

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.