Europe is dismantling its own rulebook to compete with America

The EU's Digital Omnibus package proposes sweeping changes to the AI Act, GDPR, and other digital frameworks under the banner of 'simplification.' The package delays AI Act obligations for high-risk systems by up to 16 months, creates new legitimate interest grounds for training AI on personal data, and narrows the definition of personal data itself. Critics argue this is a structural rollback of digital rights rather than mere tidying. The real causes of Europe's tech gap — fragmented capital markets, lack of a genuine digital single market, punitive bankruptcy laws, and talent pipeline issues — are left unaddressed. Deregulation primarily benefits incumbent US tech giants rather than European startups, and risks dismantling the regulatory credibility (the 'Brussels Effect') that gave Europe a distinctive global position in tech governance.