DIGITALEUROPE reacts to Europe's push for digital competitiveness

Brussels, 19 November 2025 – The digital simplification package presented today by the European Commission is an important signal that Europe intends to match competitiveness to concrete measures. Going into the negotiation phase, we look forward to working with Europe’s political leadership in order to secure Europe’s position as a global leader in trusted digital innovation.   

The business and economic context underscores the urgency of getting this right. DIGITALEUROPE’s latest membership survey shows that only 8% of our member companies feel positive about Europe’s trajectory, compared with 30% two years ago, whilst 45% point to a worsened business environment. With estimated compliance costs up by 12% last year alone, more than half of our members are now seeking growth outside Europe.  

DIGITALEUROPE believes the digital simplification package must focus decisively on the business-to-business angle, rather than on consumer aspects of these regulations, as this is where Europe’s digital strengths lies. The delays to the AI Act are necessary and come at the right time. This extra time will allow us to finalise the required technical standards. What we need in addition is a better way to make the AI Act work with existing legislation. Many of Europe’s most advanced sectors already operate under mature and trusted frameworks covering the risk, like medical device or machinery. Now we have an opportunity to assess if there are any concrete gaps in these frameworks regarding AI. This is urgent to secure Europe’s digital competitiveness. 

Beyond the AI Act, the final digital simplification package must do much more on data sharing in the Data Act. We must find better ways to incentivise, rather than force, companies to share their industrial data, on their own terms and safeguarding their IP and security. Europe’s industrial champions are on the line. 

If Europe wants to attract and grow the next generation of industrial champions, cloud switching requirements must respect both legacy and future contracts, and exclude customised business-to-business contracts. 

Last, the creation of a single reporting platform for cybersecurity incidents is a positive development. However, real simplification of reporting must include the content and timelines of the reports, which must be harmonised across different legislation. More work is also needed to simplify how the Cyber Resilience Act can be applied to inherently low-risk products such as toothbrushes or industrial sensors. 

Cecilia Bonefeld-Dahl, Director General, DIGITALEUROPE said: ‘Today’s digital simplification package is a first concrete step to keep European leadership in AI and advanced technologies within reach. It will be key to refine how AI is treated for already regulated products, make data sharing voluntary and cloud rules for B2B more reflective of our industrial interests, and create single reporting platform with harmonised reports and timelines. That is how Europe turns regulatory ambition into competitive advantage. We scale, we lead, we succeed in Europe.’ 

The proposal sets the right direction of travel and recognises the need to support Europe’s digital competitiveness. Going forward, the legislative process must allow the finetuning of the remaining elements to ensure that the resulting digital rules work with Europe’s industrial strengths. This is Europe’s AI and tech moment. Let us act together. We scale, we lead, we succeed in Europe.