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Reforming the GDPR

Reforming the GDPR


After a surge of latest digital laws over the previous two years, the European Fee seems to don’t have any intention of easing its tempo in reshaping Europe’s regulatory panorama – whether or not for higher or worse. Its present agenda contains not solely the potential reopening of the AI Act, but in addition a reform of the GDPR (Normal Knowledge Safety Regulation). Whereas much less seen, the GDPR reform might have far-reaching penalties. It might both weaken the EU’s core authorized protections resulting from lobbying strain or efficiently modernise the regulation to fulfill the challenges posed by at the moment’s data-driven applied sciences.

This put up offers a short overview of the proposed changes to the GDPR and situates them throughout the broader debate on regulatory reform. I argue that reform efforts ought to focus not merely on simplification and deregulation. They need to strengthen enforcement, make clear the interrelations inside EU digital legislation, and repair the structural issues of the GDPR as a part of the broader challenge of advancing digital regulation.

Why is a reform of the GDPR on the desk?

Present debates on regulation happen in an even bigger context typically dominated by a profitable however dangerous narrative of innovation, and an excessively slim deal with competitiveness and geopolitical developments (see right here, right here and right here). Regulation and enforcement points really feel extra politicised than ever. Not solely are the same old actors – NGOs and civil society – calling on regulators. In late June, Nobel Prize winners in Economics and Physics drew vital consideration with an open letter urging the Fee “to withstand strain from these attacking the principles on general-purpose AI.” The proposed reform of the GDPR has not (but?) attracted comparable public consideration. The Fee at present seems to favour incremental modifications quite than a sweeping overhaul.

The GDPR serves as a “spine of the EU’s digital rulebook”, however has additionally been a supply of intense debate and criticism from the outset. Broadly, two principal sides have emerged: some say the GDPR constitutes an extreme regulatory burden on companies and the financial system; others warn that revising it dangers undermining basic rights.

Within the present political local weather, formed by lobbying strain from highly effective non-public actors, political narratives are more and more aligned with the primary view. The Fee, in addition to the coalition treaty of the present German authorities, name for decreasing the burden on SMEs (small and medium enterprises) from GDPR obligations and different “bureaucratic” necessities.

Whereas easing burdens on non-commercial actors, akin to associations, is arguably affordable and bonafide (as information safety is, in any case, a balancing of pursuits between processors and information topics), the controversy is overly fixated on simplification, effectivity, and competitiveness. These phrases, nevertheless, lack intrinsic normative worth. With out clear reference factors, they continue to be empty rhetoric. One can, in any case, dismantle democracies very effectively. Until they’re linked to basic rights and sustainable social and political goals, an unique deal with these buzzwords will finally profit solely these actors who already dominate the market.

In the meantime, a number of structural challenges stay unresolved: the dysfunctional instrument of consent; the rising impossibility of distinguishing between information classes, particularly within the age of AI; the structural erosion of information safety rules; the dearth of coordination with different authorized acts, and the persevering with unbridled energy of worldwide gamers within the digital financial system, whose aggressive information extraction continues. On this context, structural options that complement the person rights of information topics – akin to actor-related obligations addressing systemic dangers, as seen within the DSA – and coordinated oversight must be urgently critically mentioned.

What are the strategies for reforming the GDPR?

One long-standing level of rivalry, relationship again to the unique GDPR debates in 2013, is its horizontal or “one-size-fits-all” strategy: equivalent authorized obligations apply equally to Meta and to an area kindergarten. To implement a graded regulatory strategy and tackle the structural challenges talked about above, numerous reform proposals are being mentioned.

On the EU stage, proposed amendments are at present at numerous levels. On 21 Could 2025, the EU Fee proposed reforms in its fourth omnibus package deal. These embody amendments to Article 4 GDPR defining SMEs as corporations with fewer than 250 staff and annual turnover beneath EUR 50 million or a stability sheet complete beneath EUR 43 million, and small mid-cap enterprises with fewer than 750 staff and annual turnover beneath EUR 150 million or a stability sheet complete beneath EUR 129 million. Moreover, corporations with fewer than 750 staff wouldn’t need to hold information of information processing – until their processing is more likely to pose a “excessive threat” to information topics (analysed right here). Additional modifications embody amendments to the Code of Conduct beneath Article 40 GDPR and the certification schemes beneath Article 42 GDPR, tailor-made to the wants of SMEs and SMCs. Nevertheless, these amendments are unlikely to have a serious sensible affect.

One other reform proposal by Voß and Schrems goes additional by focusing not solely on firm dimension but in addition on precise information threat and enterprise mannequin. They counsel that corporations processing giant volumes of information and/or delicate information, or these whose main enterprise mannequin depends on private information processing, ought to face stricter obligations. Smaller corporations, nevertheless, must be exempt from documentation necessities and the necessity to appoint information safety officers, thereby considerably easing their compliance burden whereas tightening rules for data-intensive companies.

A extra radical proposal is introduced in a draft dialogue paper for a brand new “AI Knowledge Safety Regulation” by Christiane Wendehorst. It additionally suggests a tiered mannequin however goals to exclude “minimal-risk information actions by small-scale controllers” from the scope of the GDPR altogether. An in depth dialogue of this paper is past this put up’s scope. Notable ideas, nevertheless, embody the introduction of a quasi-controller idea or a database for high-risk controllers. In my opinion, different strategies, such because the proposed exceptions to GDPR necessities and information topics’ rights for the aim of AI coaching, are notably problematic and lift critical considerations (see Articles 11 and 12 of the proposal).

Regardless of legitimate criticisms concerning the small print of the reform proposals, the event of concrete proposals is, in precept, welcome. Many, myself included, have lengthy advocated for extra risk-based and systemic options in information safety (see, for instance, right here , right here and right here). The prevailing tendency (notably in Germany) to deal with the GDPR as a regulatory panacea is unhelpful and ignores sensible enforcement realities. In follow, supervisory authorities are resorting to stopgap options, akin to assuming that LLMs don’t course of private information. The main target, nevertheless, ought to stay on defending autonomy, privateness, and information safety rights, quite than repurposing the GDPR as an “enabling” framework for generative AI and different data-intensive applied sciences.

What’s the threat in reopening up the GDPR?

The GDPR – and digital regulation extra broadly – is entangled in international political tensions. Enforcement towards Huge Tech is usually portrayed as an unfair follow and focused strategy towards the US. On the identical time, information safety is ceaselessly blamed for a variety of perceived deficiencies: from gradual administrative digitalisation to Europe’s lagging AI sector.

The EU should resist such political strain and reaffirm its dedication to a basic rights-based regulatory mannequin – one which more and more diverges from approaches in different elements of the world. As has been argued repeatedly, efficient regulation fosters innovation by offering authorized certainty and inspiring reliable, human-centred and truthful technical innovation, as a substitute of favouring the strongest, quicker or richest.

Within the present political local weather, reopening the GDPR beneath slogans like “decreasing forms”, “simplification” and “deregulation” dangers greater than minor tweaks. It might erode accountability and basic rights safety. Within the age of AI, the safety of basic rights must be strengthened, not weakened, which additionally means successfully imposing the present guidelines.

The safety of basic rights is a normative difficulty, not only a matter of numbers, like firm dimension or the variety of information topics affected. Focusing solely on these figures misses essential normative considerations associated to basic rights, structural energy imbalances, and the integrity of democratic governance. Furthermore, information processing and its implications for basic rights are extremely contextual. A small firm can course of extremely delicate information of some folks whereas a big enterprise might course of giant quantities of non-public information with much less relevance for basic rights. As already defined right here, the proposed modification of Article 30 GDPR will most likely not have a lot impact anyway, which raises the query whether or not the opening of the GDPR is price it in any case.

The urgent societal issues of the safety of privateness, information, autonomy and freedom should not restricted to overburdening regulatory burdens on SMEs, however in managing information energy, tackling digital oligopolies, and enabling digital transformation within the public curiosity. Knowledge safety is crucial to democracy: democratic selections require the area to decide on autonomously, freely, and – if desired – in non-public.

Bettering Enforcement

One other main unresolved difficulty is the enforcement of the GDPR, particularly in cross-border instances. As an alternative of solely specializing in deregulation, enforcement must be strategically strengthened. The Irish Knowledge Safety Authority (DPA), as a result of presence of many Huge Tech corporations in Eire and the GDPR’s one-stop-shop mechanism, has grow to be a bottleneck in enforcement procedures.

In June, after two years of negotiations, the European Parliament, the Council and the Fee reached a preliminary settlement on bettering cooperation between nationwide DPAs in cross-border instances. The settlement, nonetheless pending formal adoption, introduces new timelines: cross-border investigations have to be accomplished inside 15 months, extendable by 12 months for advanced instances. If the scope of investigation is evident, no objections come up, and the lead authority has related expertise, the deadline shortens to 12 months. The brand new “early resolution mechanism” would enable DPAs to resolve a case earlier than triggering the usual cross-border criticism course of.

Cooperation could be additional streamlined by requiring a “key points report” and permitting non-contentious instances to be resolved with out formally involving different authorities, topic to a four-week objection interval.

These timelines have drawn sharp criticism for being too lengthy, doubtlessly hindering quite facilitating quicker enforcement. Critics argue they ignore person pursuits and introduce extra procedural burdens as a substitute of simplifying enforcement. Certainly, it’s uncertain that this reform will enhance the place of affected people. Inflexible timelines can have diversified results: dashing up or dragging out procedures.

Conclusion & Outlook

The much-invoked purpose of simplifying the EU’s regulatory framework – now so advanced that even specialists wrestle to navigate it – should not be confused with deregulation. High quality issues greater than amount, in each instructions. Extra guidelines should not all the time higher. Nor are fewer.

What is required is a deliberative, knowledgeable, and democratic discourse on the path of digital governance. Three factors are particularly essential.

First: Make clear how authorized devices and totally different rules relate to one another. Repeatedly stating that the GDPR stays unaffected” doesn’t improve authorized certainty. Clarification would profit all stakeholders.

Second: Strengthen enforcement of digital regulation according to the rule of legislation. This requires not solely well-resourced and impartial supervisory authorities but in addition systemic approaches that transcend particular person instances and are embedded within the wider regulatory panorama.

Third: Promote options to Huge Tech digital infrastructure. This may not solely improve European digital sovereignty but in addition open alternatives for SMEs. Knowledge safety will not be an impediment to this – fairly the alternative.



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