Observed Signal · Sep 21, 2026 · Policy Update · Source: Trending Topics (DACH/CEE Innovation & Tech) · Impact: 4/5 · Sentiment: Negative
Regulation & Policy Market: EU Council Debates Personal Data Use for AI Training
The EU Commission's 'Digital Omnibus' is in its decisive phase in the Council of the EU, with negotiations touching the GDPR core. The Austrian privacy organization noyb has published two confidential Council documents: the Irish Presidency's compromise text and German drafting suggestions. The new article 88b allows processing of personal data for AI training based on legitimate interest, with Germany proposing a legal presumption of legitimacy. Germany also proposes exemptions from key data subject rights (information, correction, deletion, restriction) under certain conditions. Critics warn of 'digital expropriation' of Europeans, while the Commission argues for simplification and competitiveness. The final adoption is expected no earlier than early 2027, and the European Court of Justice may ultimately decide on the issue.
This is a major policy update from the EU that could reshape the legal basis for using personal data in AI training, directly impacting AdTech and MarTech companies operating in Europe. The proposed changes to GDPR are highly relevant to the industry's data practices.
Key Takeaways & Evidence Grounding
- The Irish Presidency compromise text (Council document 12535/26) introduces Article 88b allowing personal data processing for AI development/operation based on legitimate interest.
- Germany proposes a legal presumption that processing personal data for AI training is a legitimate interest, and that data collected for other purposes is compatible with the initial purposes.
- Germany suggests exemptions from GDPR Articles 14, 16, 17, and 18 (information, correction, deletion, restriction) if compliance is impossible or disproportionate.
- noyb founder Max Schrems criticizes the proposal as 'digital expropriation of Europeans', saying it prioritizes AI companies' interests over fundamental privacy rights.
- The European Data Protection Board and European Data Protection Supervisor have expressed concerns about the redefinition of personal data, fearing a drop in protection levels.
- The Digital Omnibus must be approved by the Council and EU Parliament, with a realistic conclusion expected no earlier than early 2027.
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