EU Omnibus IV And GDPR Simplification

On 21 May 2025, the European Commission unveiled its fourth Omnibus Simplification Package, a reform package aimed at slashing €400 million in administrative burdens across the EU, as part of the ongoing Single Market Simplification effort. Among the key reforms is the formal introduction of a new corporate category, "small mid-cap enterprises" ("SMCs") which intends to smoothen the sharp regulatory 'cliff' between SMEs and large enterprises. Notably however, this reclassification carries significant implications for data protection, as the European Commission proposes to expand exemptions under the General Data Protection Regulation.

SMCs

A core component of this package is the formal recognition of SMCswhich are defined as businesses with fewer than 750 employees and either under €150 million in turnover or €129 million in assets.