The European Commission’s Digital Omnibus takes a step toward streamlining EU digital regulation, but it stops short of the level of simplification and certainty appliance manufacturers urgently need. The creation of a single EU reporting channel for cybersecurity and data-breach incidents addresses a long-overdue inefficiency, yet other elements risk adding complexity rather than reducing it.
Key definitions in the AI framework remain overly broad, causing simple, non-adaptive software to be treated as AI. Misalignments with product-safety legislation could result in basic household appliance features being misclassified as “high-risk.” These gaps maintain unnecessary regulatory burdens for businesses.
Similarly, although the IoT data-sharing provisions strengthen safeguards against third-country access, they do not adequately protect trade secrets within the EU. This leaves appliance producers vulnerable to the unintended disclosure of sensitive information.
Additionally, some changes introduced under the GDPR bear potentially the risk of creating additional requirements, rather than simplification.
To ensure Europe remains competitive in connected appliance innovation and delivers on the promise of a Simpler and Faster Europe, the next phase of work must provide technical legal certainty: clearer AI scope definitions, stronger protection for derived and proprietary data, and workable, non-retrospective rules for legacy products. Only with these measures, the Digital Omnibus can evolve into a meaningful framework that reduces complexity, strengthens competitiveness, and unlocks the potential of digital technologies for both manufacturers and consumers.
Michał Zakrzewski, APPLiA Senior Policy Director Digital & Competitiveness “The Digital Omnibus takes a necessary first step toward simplifying EU digital regulation, but we are still far from the level of simplification European manufacturers need. Clearer definitions in the AI framework and stronger safeguards for proprietary data will be essential to turn this initial progress into practical, operational clarity. At APPLiA, we are committed to working with EU institutions to ensure these reforms truly reduce complexity and strengthen Europe’s competitiveness.”
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