Digital Omnibus: EU’s Plan to Boost Innovation

Brussels, 19 November 2025 – The European Commission’s newly unveiled digital simplification plan sends a clear signal: Europe is looking to align its innovation ambitions with practical measures that help businesses grow – not hold them back.

The urgency of this shift is underscored by the current economic and business climate. According to the latest survey among members of DIGITALEUROPE:

• only 8% of companies are optimistic about Europe’s future (down from 30% two years ago),
• 45% report a deterioration in the business environment,
• compliance costs have increased by 12% in just one year,
• more than half of companies are seeking growth opportunities outside the EU.

DIGITALEUROPE strongly emphasises that the digital simplification package must focus on the B2B sector – not consumer-facing regulation. This is where Europe’s true digital strength lies.

The postponement of the AI Act is both justified and timely. It provides the necessary space to finalise technical standards – an essential step for effective implementation.

At the same time, better alignment between the AI Act and existing regulatory frameworks is needed. Many of Europe’s most advanced industries – such as medical devices and manufacturing – already operate within mature and trusted regulatory systems. This creates an opportunity to assess where AI-specific gaps exist, rather than duplicating or overcomplicating existing rules.

Beyond AI, the digital simplification package must go further in addressing data sharing under the Data Act.

The priority should be to incentivise – not mandate – data sharing, allowing companies to share data on their own terms while protecting intellectual property and security. This approach will be critical for maintaining Europe’s industrial leadership. Similarly, rules governing switching between cloud service providers must respect both existing and future contracts, while excluding individually negotiated B2B agreements. If Europe aims to attract and scale the next generation of innovative leaders, regulatory frameworks must reflect real business needs.

The creation of a single platform for reporting cybersecurity incidents is a positive step forward. However, meaningful simplification will require harmonisation – both in terms of reporting requirements and deadlines across different legal frameworks. Further clarification is also needed regarding the application of the Cyber Resilience Act to inherently low-risk products, such as toothbrushes or industrial sensors. Without a proportionate approach, regulation risks becoming unnecessarily burdensome.

“Today’s digital simplification package is the first concrete step towards keeping Europe’s leadership in AI and advanced technologies within reach. The key now is to refine the approach – align AI rules with existing frameworks, make data sharing voluntary, adapt cloud rules to industrial realities, and create a single reporting platform with harmonised requirements and timelines. This is how Europe can turn regulatory ambition into a competitive advantage. When we scale, we lead – and we succeed in Europe,” says Cecilia Bonefeld-Dahl.

The European Commission’s proposal sets the right direction and acknowledges the need to strengthen Europe’s digital competitiveness. However, the next phase of the legislative process will be critical to fine-tune the remaining elements and ensure that the final framework reflects the strengths of European industry.

As members of DIGITALEUROPE, we look forward to engaging in the upcoming negotiations – bringing Czech perspectives into the European debate and keeping our community informed about key developments.