EU Digital Chief: Proposes Plans to Ease Digital Regulation

Henna Virkkunen, the European Commission's vice president for technological sovereignty, security, and democracy, has announced plans to ease digital regulation in Europe. In an effort to promote investment and innovation, the commission will propose at least five legislative simplification packages this year. These packages aim to cut down on the extra bureaucracy and administrative burden that has been hindering the growth and competitiveness of the digital sector.



The proposed packages will address specific regulatory burdens, including:

1. Transparency Reporting: The EU Commission has introduced the Implementing Regulation for the Digital Services Act (DSA), which standardizes transparency reporting for online platforms. This regulation requires providers to comply with granular and onerous reporting parameters, which may require data that they have not traditionally collected or tracked systematically. This burden is expected to be significant in terms of time and resources for providers to comply with.
2. AI Act Compliance: The EU AI Act, which entered into force on 1 August 2024, requires providers of general-purpose AI models to comply with specific obligations from 2 August 2025. The European AI Office is tasked with facilitating the development of a General-Purpose AI Code of Practice to provide practical guidance on how to comply with these obligations.
3. Cybersecurity and ICT Risk Management: The Cyber Resilience Act and the Digital Operational Resilience Act (DORA) are set to enhance cybersecurity and ICT risk management across sectors. These regulations impose new requirements on providers to manage cybersecurity risks and report incidents, which may add to their administrative burden.
4. Online Safety Act Compliance: In the UK, Ofcom has published new resources relating to online services' compliance with the Online Safety Act 2023. This act imposes new obligations on providers to tackle online harms, which may add to their regulatory burden.
5. Ransomware Payment Regulations and AI Copyright Reforms: The UK government has launched consultations on ransomware payment regulations and AI copyright reforms. These consultations may lead to new regulations that impose additional burdens on providers.



By addressing these specific regulatory burdens, the EU Commission aims to promote investment and innovation in the digital sector, while also ensuring that providers comply with their obligations under the various digital regulations. The effectiveness of these packages will be measured through various means, such as transparency reporting, compliance with AI regulations, cybersecurity and ICT risk management, user feedback and satisfaction, and the overall user experience in the digital environment.

In conclusion, the EU Commission's plans to ease digital regulation through legislative simplification packages are a welcome step towards promoting investment and innovation in the digital sector. By addressing specific regulatory burdens and measuring the effectiveness of these packages, the commission aims to create a more favorable environment for digital service providers to operate and innovate, ultimately leading to increased investment and growth in the sector.