The European Commission’s (EC) Digital Omnibus initiative is expected to streamline the European Union’s complex digital regulatory framework. Launched as part of the broader Simpler and Faster Europe agenda, the Digital Omnibus seeks to reduce administrative burdens, harmonize overlapping frameworks, and foster competitiveness without compromising core safeguards on data protection and cybersecurity.
The Digital Omnibus is a legislative initiative by the EC aimed at simplifying and modernizing the EU’s digital regulatory framework. It does not seek to remove existing obligations but to consolidate and harmonize rules to reduce complexity and administrative burdens for businesses.
The Digital Omnibus proposal is designed to rationalize multiple legislative instruments, including the GDPR, the AI Act, the Data Act, NIS2 Directive, and ePrivacy Directive, as well as the Data Governance Act, the Cyber Resilience Act (CRA), and the Cybersecurity Act (CSA).
By merging or removing redundant provisions and clarifying existing rules, the initiative aims to create a more coherent, innovation-friendly digital environment.
Key proposals in the package include:
The Commission’s call for feedback and evidence, which closed in October 2025, emphasized “proportionality and outcome-based” regulation, targeting a 25% reduction in administrative and reporting costs for all businesses and 35% for small and medium enterprises (SMEs) by 2030. The goal is greater legal clarity and efficiency, not deregulation, to make sure Europe’s digital laws remain fit for purpose in a fast-evolving tech landscape.
The Data and Technology for Compliance (DT4C) Alliance, which includes Moody’s as a founding member, supports the Digital Omnibus objective to reduce duplicative obligations and enhance responsible use of data in compliance activity.
DT4C’s response framed simplification as digital enablement: harmonizing data rights, trust infrastructures, and AI rules to empower innovation around regulatory technology.
Its recommendations focus on:
In parallel, the European Banking Authority (EBA) has advanced its own simplification agenda, targeting prudential regulation within the banking sector.
Recent consultations and finalized Regulatory Technical Standards (RTS) aim to:
While DT4C advocates horizontal simplification across digital and compliance frameworks, the EBA focuses on supervisory refinement—simplifying mandates and enhancing operational efficiency without diluting prudential safeguards.
Both approaches converge on a shared principle, however, any move towards simplification should target reducing duplication, supporting predictability, and advance development of trust.
For financial institutions and technology providers, the EC’s Digital Omnibus represents an opportunity to reduce compliance costs, accelerate innovation, and strengthen Europe’s global competitiveness.
DT4C is the EU’s leading advocacy group for data and technology providers in financial crime prevention. It represents companies delivering compliance tools and services that help banks and other institutions meet anti-money laundering (AML), counter-terrorist financing (CFT), and related obligations.
DT4C works with policymakers to promote effective, future-proof regulatory frameworks and champions the adoption of advanced data and technology to strengthen the fight against financial crime across Europe.
For information about Moody’s data, analytics, and workflow solutions for compliance and risk management, which can be tailored for financial services companies, please get in touch any time—we would love to hear from you.
*Disclaimer: This content is for informational purposes only and reflects our understanding of the subject matter as of the date of publication. It does not constitute legal, regulatory, or compliance advice.