Podcast Summary: "What Is Europe Trying to Achieve With Its Omnibus and Sovereignty Push?"

Podcast: The Tech Policy Press Podcast
Date: November 23, 2025
Host: Tech Policy Press (Justin Hendricks, Ramsha Jahangir)
Guests:

• Julia Smapman (Senior Researcher, Ada Lovelace Institute)
• Levi (Policy Fellow, AI Now Institute, PhD researcher, University of Amsterdam)

Episode Overview

This episode explores the European Union’s latest “digital omnibus” proposal—a sweeping legislative effort to simplify and amend the bloc's digital and privacy laws—alongside Europe’s broader push for digital sovereignty. The discussion scrutinizes whether these moves represent a clear strategy to foster innovation and independence, or if they risk backsliding on fundamental digital rights in favor of large commercial interests. Two leading experts unpack what’s at stake, the shifting power dynamics, and the geopolitical and economic context shaping the debate.

Key Discussion Points & Insights

1. What Is the Digital Omnibus?

Julia Smapman highlights that the digital omnibus combines both "data" and "AI" amendments.

• Primary concern: The omnibus "tips the scales in favor of commercial interests at the expense of people’s rights and protections." (Julia Smapman, 02:42)
• Key GDPR (data omnibus) changes:
  • Definition of Personal Data: Moves from an objective to a subjective standard; if companies themselves cannot identify individuals, data may not be classified as personal—"less data is considered to be personal data…less data has these protections and rights". (03:01)
  • Automated Decision-Making: Switches from a prohibition to permission, creating risk for individuals.
  • Legitimate Interests for AI: Expands "legitimate interest" to include AI development—"quite a vague legitimate interest operation of AI." (04:00)
• Key AI Act (AI omnibus) changes:
  • Delay in High-Risk Provisions: Extends the timeline for high-risk AI system regulations to late 2027—"means that high-risk systems can continue to be used and developed, but with less protections being enforced." (04:54)
  • Low-Risk AI Registration Dropped: Companies can self-designate their systems as "low-risk" without external oversight—"companies can basically mark their own homework." (05:26)

2. Why Is the EU Pursuing Simplification? Who Benefits?

• Julia connects the push to "cutting red tape" and external pressure, especially from the US.
  • The “narrative that regulation stands in opposition to innovation” is widespread in the EU, UK, and US policy debates. (05:51)
  • While simplification is pitched as helping small businesses (SMEs), in reality “overwhelming beneficiaries of these changes will be large, non-EU tech companies…most concerned with the training of big AI models.” (06:40)
• Geopolitical and economic concerns—especially about EU competitiveness—are driving these changes.

3. Digital Sovereignty Summit Context

Levi analyzes the Berlin Digital Sovereignty Summit held the same week:

• The summit saw "promises about unlocking more capital for European tech" and a push for European-only public procurement (“buy European” clauses). (07:33)
• Levi describes the sovereignty push as currently “symbolic”, noting, “Where the rubber hits the road is when capital gets deployed.” (08:30)
• There’s a tension between true sovereignty (control over infrastructure/policy) and commercial co-option—large “hyperscaler” firms (like US cloud giants) positioning to profit from EU sovereignty efforts via “partner cloud” arrangements.

Notable Quote

“There is a very real public, like a state-level, imperative…sparked by questions of weaponizability, the threat of the deteriorating transatlantic relationship…activated the discussion on sovereignty that has been going on since the Snowden days.”
—Levi, 08:55

4. The Three Dimensions of Digital Sovereignty

Levi distinguishes three overlapping concepts (10:28):

1. Regulatory Sovereignty: Enforce your rules on global tech companies.
2. Political Sovereignty: Ensure critical infrastructure isn’t vulnerable to foreign “cutoff” (as in the Trump-Microsoft-ICC incident).
3. Economic Sovereignty: Prevent foreign tech infrastructure from extracting economic profits (“rents”) from Europe.

• Hyperscalers (US-based cloud giants) generally accommodate regulatory needs, but true economic sovereignty remains elusive due to concentrated market power.

Notable Quote

“Whether hyperscalers are compatible with the European sovereignty aspirations very much depends on why do we care. And there is a very active discussion…different parties try to shape that narrative to their advantage.”
—Levi, 13:45

5. Market Concentration, Weakening Rights, & the Question of Values

• Ramsha: Even if US providers are replaced by European ones, will it improve privacy and rights if protections are simultaneously weakened? (14:09)
• Julia: “You could say there’s not that big a difference having your data rights exploited by a foreign company versus a European company.” (15:18)
  • Real improvement depends on maintaining high standards, not just shifting ownership.
• Levi: “Nationality per se is not the key lever...There is no such thing as unregulated markets—they are only differently regulated.” (16:13)
  • European “self-doubt” is misplaced; regulation can foster innovation, not stifle it.
  • Higher standards and public trust can be competitive advantages.

6. The Regulation vs. Innovation Debate

Julia and Levi both reject the idea that regulation hinders innovation:

• Regulation builds trust, enabling wider technology adoption: “Regulation can really create trust…we trust medicine, finance, airplanes…because we have systems in place that guarantee the quality.” (Julia, 19:15)
• Firms can leverage strict compliance as a market differentiator.

7. How Can Civil Society Push Back?

• Omnibus process criticized: The change is being pushed through an “omnibus procedure” meant for technical corrections, not major policy changes—bypassing some standard safeguards like public consultations and impact assessments. (20:27)
• Still, the European Parliament and Council must approve the omnibus, presenting a window (“at least 8-10 months”) for engagement and pressure. (20:58)
• Levi: Civil society and critics need to engage not only about regulation, but also about the flows of capital being deployed for tech development, as “a lot of this money will be spent to foster technology that is captured in a corporate dominant ecosystem.” (22:10)

8. Political Landscape Among EU Member States

• National differences are clear: Some countries oppose reopening GDPR, while Germany is more favorable (due to industry interests). (25:45)
• Both Julia and Levi see opportunity for advocacy and evidence-based debate at the member-state level; outcomes are not set in stone.

Notable Quotes & Memorable Moments

• Julia Smapman [02:42]:

  "This digital omnibus definitely tips the scales in favor of commercial interests at the expense of people’s rights and protections."

• Levi [10:42]:

  "If we are only concerned about regulatory autonomy, there is an amazing sovereign cloud offering by all the hyperscalers that they are very willing to sell to you."

• Julia Smapman [15:18]:

  "There’s not that big a difference of having your data rights exploited by a foreign company versus a European company... It is very important that we continue to hold those European companies to a high standard."

• Levi [16:13]:

  “There is no such thing as unregulated markets—they are only differently regulated. If there are not public rules, then there will be private rules.”

• Julia Smapman [19:15]:

  “Regulation can really create trust…people are more willing and more excited to use technologies that they feel have a sufficient amount of guardrails and safeguards around them.”

Timestamps for Important Segments

• 00:00–01:04 – Introduction, setting the stage
• 02:42 – Julia details specific changes in the digital omnibus
• 05:51 – Who’s pushing for simplification and why
• 07:33 – Recap of the Berlin Digital Sovereignty Summit
• 10:28 – Levi defines the three facets of sovereignty
• 14:50 – Debate: would European providers change anything without strong rules?
• 16:13 – Levi critiques the innovation vs regulation binary
• 19:15 – Julia on regulation as a trust-builder
• 20:27 – How to push back: limitations of the omnibus process and advocacy windows
• 24:23 – Political will: divergent national interests inside the EU

Takeaways

• The EU’s digital omnibus marks the biggest potential rollback of digital rights in EU history, according to critics—narrowing data protection and easing rules on AI system oversight.
• Claims of simplification and pro-innovation masking regulatory changes that largely benefit large, mostly non-European tech firms.
• Digital sovereignty efforts risk being captured by incumbent giants (“hyperscalers”) and may not deliver truly independent or democratic tech ecosystems—unless coupled with robust protections and public-interest constraints.
• Both guests caution against sacrificing rights for economic expediency, urging civil society and policymakers to focus on outcomes—trust, accountability, and high standards—regardless of who provides the technology.
• The next 8–12 months are crucial for advocacy, as the omnibus proposal advances through EU legislative channels.

For full context and further resources, visit Tech Policy Press.