The European Commission will launch its long-awaited bid to simplify digital rules in an effort to reduce the regulatory burden on businesses and to promote European start ups in the global artificial intelligence race.
However, early drafts of the legislation have been widely criticised by digital privacy groups and some MEPs as watering down data protection and AI safeguards, partly under pressure from the Trump administration.
As part of the drive towards greater competitiveness, and under pressure from business groups, Europe has been attempting to simplify rules across a range of areas from technology to environmental and financial sectors, especially for SMEs.
The EU has a number of landmark digital privacy laws, including the General Data Protection Regulation and the AI Act.
The commission will propose a swathe of changes on both, as well as on the e-Privacy Directive and the Data Act.
One expected proposal could limit the number of times users have to click accept on cookie banners when opening the same web pages.
On cybersecurity, the simplification drive is aimed at giving companies a single point of entry when reporting a cyber attack or data breach.
However, more controversial would be proposals to soften rules on so-called high-risk AI systems, such as those which might analyse CVs or loan applications.
It is expected such rules will be delayed until December 2027, a move supported by both France and Germany.
Elsewhere, big tech firms like Google, Meta and OpenAI could be allowed to use Europeans' personal data to train their AI models if there is a legitimate interest, while companies might also be exempt from the ban on processing special categories of personal data so as not to disproportionately hinder the development and AI.
The European Digital Rights group says the so-called Digital Omnibus will represent the biggest rollback of digital human rights in EU history.
Business organisations say the regulations are strangling AI development in Europe to the benefit of the US and China.