The digital package is part of a larger Simplification Agenda to reduce compliance costs and administrative burdens for businesses, echoing the Draghi Report’s call to boost productivity and support innovation. Businesses have been complaining about GDPR red tape since its inception, and new rules are supposed to make compliance easier and turbocharge the development of AI in the EU. Simplification is framed as a precondition for firms to scale up in the EU, ironically targeting laws that were also argued to promote innovation in Europe. It might also stave off tariffs the U.S. has threatened to levy, thanks in part to heavy lobbying from Meta and tech lobbying groups.

The most striking proposal seeks to narrow the definition of personal data, the very basis of the GDPR. Today, information counts as personal data if someone can reasonably identify a person from it, whether directly or by combining it with other information.