Dispatch from Brussels: Updates on EU Tech Policy

EU’s Digital Omnibus simplification: More than 20 tech industry associations have now warned member states against watering down key simplification measures proposed by the Commission, particularly around GDPR definitions and plans for a single EU-level cyber incident reporting mechanism. Industry is also increasingly concerned about proposed cookie reforms, arguing they could significantly impact parts of the digital advertising ecosystem and broader online economy. The debate is rapidly becoming another test of whether the EU can genuinely deliver on its simplification and competitiveness agenda without reopening deeper political battles around privacy and digital regulation.

Digital Sovereignty

The Rise of “Digital Embassies” and Sovereign Data Storage: one fascinating piece worth reading this week explores the rise of “digital embassies” - sovereign data vaults hosted abroad to ensure states can continue functioning in the event of cyberattacks, military conflict or catastrophic disruption. Estonia pioneered the concept after years of Russian cyber aggression, storing critical government data securely in Luxembourg under embassy-like protections. Since Russia’s invasion of Ukraine, interest in the model has accelerated significantly, with digital infrastructure, cloud resilience and sovereign data storage increasingly viewed as core national security capabilities. The idea of “a nation on a hard drive” neatly captures where many of Europe’s digital policy debates are now heading: technology policy is increasingly about resilience, sovereignty and geopolitical leverage.

Networks

EU’s Digital Networks Act: the Commission’s sweeping telecoms reform proposal - continues to stall. A new progress report prepared by the Cypriot Presidency confirms that member states remain deeply divided on key reforms around spectrum allocation, implementation costs and the balance between EU-level harmonisation and national competence. Discussions so far have largely consisted of technical workshops rather than substantive negotiations, which reflects the political sensitivity around telecoms reform and national control over spectrum. Work in the European Parliament is also only just beginning, with a draft report not expected until October and final negotiations likely stretching well into 2027.

techUK International Policy and Trade Programme activities

techUK supports members with their international trade plans and aspirations. We help members to understand market opportunities, tackle market access barriers, and build partnerships in their target market. Visit the programme page here.