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The Digital Omnibus: A quick glance at the GDPR impact

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On 19 November 2025, the European Commission released the Digital Omnibus Proposal as part of its comprehensive 2024-2029 legislative simplification agenda. The initiative aims to streamline the EU's digital regulatory framework, alleviate administrative burdens, and enhance competitiveness.

The proposal was introduced following a contentious pre-adoption period. Earlier in the month, the leak of an internal draft prompted significant debate among academics, civil society representatives, and industry stakeholders regarding the potential reopening of the GDPR and the extent of permissible changes.

While the proposal introduces amendments to several key pieces of EU digital legislation – including the Data Act, the NIS2 Directive, and the AI Act – this publication will concentrate on the proposed GDPR amendments and their practical implications.

Overview of the GDPR Amendments

PERSONAL DATA – A NEW IDENTIFIABILITY TEST
 
Current Rule Under the GDPR, data is considered personal if it identifies or can identify a person directly or indirectly. Identifiability depends on “means reasonably likely to be used,” though the GDPR does not specify who should be considered in this assessment.
Proposed Change The proposal adds an entity-relative identifiability test, stating that information is not personal to an entity if it cannot reasonably identify the person.
Potential Impact
  • Easier data sharing and pseudonymisation for analytics and R&D.
  • Controllers must document identifiability assessments.
    • Risk of inconsistent interpretations by DPAs.
SENSITIVE DATA – NEW EXEMPTIONS
 
Current Rule Under Article 9 GDPR, processing sensitive data (including biometric data) is prohibited unless a narrow exemption applies, such as explicit consent or compliance with employment/social security laws.
Proposed Change

The proposal adds two (2) new exemptions to Article 9 (2) GDPR:

  • biometric verification under the exclusive control of the data subject: the processing of biometric data is permissible when required to confirm identity, provided both the biometric information and verification mechanisms remain exclusively under the individual’s control (e.g., secure on-device authentication); and
  • residual processing of sensitive data during AI development and operation: AI developers may process inadvertently captured sensitive data if robust mitigation measures are implemented.
Potential Impact
  • Enables privacy-preserving biometric verification (e.g., passwordless logins, on-device ID checks).
  • Ensures legal certainty for AI training and testing, even with incidental sensitive data.
  • Maintains strict requirements for governance, documentation, filtering, and mitigation.
DSARs – TACKLING ABUSE
 
Current Rule Data subject access requests (DSARs) must be handled free-of-charge unless requests are manifestly unfounded or excessive.
Proposed Change Controllers may refuse or charge a reasonable fee where requests are manifestly unfounded or excessive, including where access rights are used/abused for purposes other than data protection.
Potential Impact
  • Helps combat litigation-driven or commercial misuse of DSARs.
  • Controllers still bear the burden of proof.
  • High-volume DSAR environments (transport, fintech, platforms, retail) benefit the most.
TRANSPARENCY – REDUCED DUTIES FOR LOW-RISK PROCESSING
 
Current Rule Controllers must provide detailed information under Art. 13 and 14 GDPR in nearly all scenarios.
Proposed Change Information duties may be waived where:
  • the controller - data subject relationship is clear and circumscribed;
  • the processing is not data-intensive; and
  • it is reasonable to assume that the data subject already has the key information.

This limited information obligation is subject to carve-outs (third‑country transfers, onward disclosures, automated decision making, high-risk).

Potential Impact Reduces the burden for low-risk, small-scale controllers (local services, associations).
AUTOMATED DECISION-MAKING – CLARIFIED NECESSITY
 
Current Rule Article 22 of the GDPR permits certain automated decision-making when it is necessary for the performance of a contract. However, Data Protection Authorities often interpret “necessity” very narrowly, sometimes requiring evidence that the task could not reasonably be conducted by a human.
Proposed Change A decision may be automated if it is necessary for entering into or performing the contract even if a human could technically take the decision.
Potential Impact
  • Supports AI-driven onboarding, credit scoring, verification, and fraud analysis.
  • Still requires safeguards, transparency, and human-review possibilities.
DATA BREACH NOTIFICATIONS – HIGHER THRESHOLD AND MORE TIME
 
Current Rule Controllers must notify the DPA within 72h unless the breach is unlikely to result in a risk to the data subjects.
Proposed Change
  • Notification duty arises only for breaches likely to result in a high risk (aligned with duty to notify data subjects).
  • Notification deadline extended to 96 hours.
  • All notifications must be made via a single EU entry point.
  • Harmonised notification template to be prepared by the EDPB.
Potential Impact
  • Fewer low-risk/no-impact notifications.
  • Better alignment across GDPR, NIS2, DORA, CRA reporting.
  • Organisations must update incident response procedures and timelines.
DPIAS – EU-WIDE HARMONISATION
 
Current Rule Each Member State issues its own list of processing operations requiring (or exempt from) DPIAs. This creates fragmentation.
Proposed Change A single harmonised EU list will replace all national lists, based on an EDPB proposal adopted by the Commission.
Potential Impact Increased predictability on the need to conduct a DPIA for cross-border organisations.
PSEUDONYMISATION – CLEARER RULES
 
Current Rule There is no EU-level mechanism to clarify when pseudonymised data stops being personal data for a specific controller or recipient.
Proposed Change Commission and EDPB to define means and criteria for determining when pseudonymised data is no longer personal data for a given entity.
Potential Impact
  • Could significantly expand data-sharing possibilities.
  • Provides a structured risk-based method for pseudonymisation assessments.
EPRIVACY DIRECTIVE – INTEGRATION INTO GDPR
 
Current Rule The prevailing guidelines regarding cookies are set forth in Article 5 (3) of the ePrivacy Directive. Obtaining consent is mandatory for the majority of non-essential cookies, which may contribute to user consent fatigue.
Proposed Change
  • Cookie/terminal equipment rules become part of the GDPR.
  • New consent exemptions for low-risk purposes.
  • Standards for the interpretation of machine-readable indications of data subjects’ choices.
Potential Impact
  • Major shift in cookie management and AdTech models.
  • Reduced reliance on banners once automated signals are widespread.
AI DEVELOPMENT & OPERATION – LEGITIMATE INTERESTS AS A LAWFUL BASIS
 
Current Rule GDPR does not clearly acknowledge legitimate interests as a valid legal ground for AI development.
Proposed Change

Processing personal data for AI system/model development may rely on legitimate interests under Art. 6 (1) (f) GDPR, provided:

  • no overriding rights/interests (especially for children); and
  • enhanced safeguards are implemented (data minimisation during source selection, training, testing, protections against residual disclosure, enhanced transparency, unconditional right to object).
Potential Impact
  • Creates a structured path for AI training and deployment.
  • Aligns with the AI Act.
  • Expect scrutiny on minimisation and opt-out mechanisms.

 

Next steps

The Digital Omnibus legislative proposals will now be submitted to the European Parliament and the Council for adoption.

Contact us

Our Lydian Information & Communication Technology (ICT) and Information Governance and Data Protection (Privacy) teams are available to assist you with any questions you may have regarding the latest developments in the field of data protection. Please feel free to reach out to us for further assistance.

Authors

  • Olivia Santantonio
    Partner

    Olivia Santantonio

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  • Ines Nibakuze
    Associate

    Ines Nibakuze

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