2026 Year in Preview: European Digital Regulatory Developments
As we ring in the new year, it is essential to be aware of key issues that lawmakers and regulators will focus on in the months ahead. Below are the top European digital regulatory issues to watch out for in 2026:
1) Relaxation of Existing Digital Regulations
In November 2025, the European Commission (EC) published proposals aimed at simplifying the EU’s legal framework for data processing and AI. This legislative process is expected to extend into 2026 and potentially beyond.
The proposals will focus on several critical areas:
- Reforms to the General Data Protection Regulation (GDPR): The EC suggests recognizing the development and operation of AI systems as a “legitimate interest” under the GDPR. New legal grounds for processing special category data for AI model training are also proposed. Additionally, the compliance burden for companies may be reduced by relaxing the threshold for reportable data breaches and broadening the definitions of “anonymous” data.
- Delaying Aspects of the AI Act: The application of the AI Act’s rules for high-risk AI systems may be postponed until December 2027, rather than August 2026. This delay could face challenges in implementation, but obligations for small- and medium-sized enterprises (SMEs) could be simplified.
- Data Act Modifications: Proposed changes to the switching and interoperability rules, effective since September 2025, may provide exemptions for certain data processing service providers, SMEs, and small mid-cap enterprise providers (SMCs). Trade secrets could also be excluded from data-sharing obligations.
2) Overlap Between Privacy and Other Digital Regulations
As new regulatory frameworks are established, an increasing overlap between privacy and other areas of digital regulation is anticipated. For instance, online services may be regulated under the Digital Services Act (DSA), GDPR, and consumer protection laws regarding the use of “dark patterns.”
Furthermore, both privacy and AI-specific regulators are expected to address the development and deployment of AI systems. In 2025, the European Data Protection Board (EDPB) issued guidelines on the interaction between the DSA and GDPR, and similar guidelines regarding the AI Act and GDPR are anticipated in the upcoming year.
3) Reactions to Recent Case Law on Pseudonymization
The Court of Justice of the European Union (CJEU) made a significant ruling in September 2025 regarding the case of EDPS v SRB, confirming that pseudonymized data may not be classified as personal data if sufficient technical and organizational measures are in place to prevent identification. In 2026, the implications of this judgment will likely unfold, and the EDPB is expected to release updated guidance on pseudonymization.
4) Introduction of the Digital Fairness Act
The EC initiated a public consultation in July 2025 for the proposed Digital Fairness Act (DFA), which aims to combat “unfair commercial practices” such as dark patterns and exploitative personalization. While some issues are already addressed by the DSA, the DFA will cover a broader range of practices affecting all types of traders.
5) First Wave of DSA Enforcement
In December 2025, the EC fined a company for multiple DSA infringements, including deceptive design and lack of transparency. More final decisions regarding ongoing investigations are expected in 2026, and significant CJEU decisions under the DSA regime will likely pave the way for further legal challenges.
6) Continued Focus on Online Safety for Minors
The previous year witnessed crucial developments regarding the safety of minors online, especially under the UK Online Safety Act. Continued scrutiny on minors’ safety and privacy is expected, particularly in negotiations surrounding the DFA.
7) Divergence Between UK and EU Legal Frameworks
In 2025, the UK introduced the Data (Use and Access) Act, highlighting potential regulatory differences. The UK has not yet enacted legislation equivalent to the AI Act, and its Online Safety Act imposes unique risk assessment duties on companies. As the EU considers simplifying its digital regulations, further divergences between the UK and EU frameworks are likely to emerge.
