Tech Policy Press - What’s Behind Europe’s Push to “Simplify” Tech Regulation?
Europe director Max von Thun was quoted on how Europe’s fragmented landscape makes it harder for homegrown tech companies to challenge existing Big Tech players.
“We still have 27 different member states with their own national regulatory regimes, generally with national capital markets rather than a European one,” he said. “If you’re a technology company, it’s just much harder to grow and scale across the continent.”
Europe’s role as a global ‘super-regulator’ of tech—from the General Data Protection Regulation (GDPR) to the AI Act—has long defined its leadership in digital governance. But now, under the banner of ‘simplification,’ the EU is moving to streamline its regulatory framework, prompting concerns that it could water down hard-won protections.
Recently, the European Commission has shelved draft rules on AI liability, launched a wide-ranging review of key digital laws—including the GDPR—and is promising to streamline existing consumer protection laws to support innovation and boost competitiveness. While details are still emerging, this simplification drive is expected to include changes to how rules apply to smaller firms, efforts to reduce administrative burdens, and ensure regulatory coherence.
At first glance, this may appear to be bureaucratic housekeeping. However, this shift occurs amid mounting political pressure, both within Europe and abroad. In Europe, thirteen member states have signed a declaration calling for the removal of barriers and the simplification of EU rules and procedures. They emphasized the need for a “reviewed digital rulebook” that is “deregulated where possible” and avoids “unnecessary red tape.” The push comes amid growing anxiety over Europe’s economic position in the global tech race, with the US and China dominating AI and tech infrastructure.
To better understand the motivations behind Europe’s push for regulatory simplification, Tech Policy Press spoke with experts in competition policy and digital regulation. While most of these experts acknowledge that the European regulatory framework can be complex and burdensome—especially for smaller firms—there’s broad skepticism that deregulation alone will make Europe more competitive. In fact, some argue that it could have the opposite effect, reinforcing the market dominance of large global tech companies while undermining Europe’s own values regarding data protection, accountability, and trust.
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