The European Commission has unveiled new proposals to reduce administrative costs under the General Data Protection Regulation (GDPR), as part of a broader plan to save EU businesses €400 million annually.

Included in the Commission’s fourth “Simplification Omnibus” package, the proposals aim to ease compliance requirements for thousands of companies, particularly those that have outgrown SME status but are not yet large enterprises. These “small-mid caps”—defined as firms with fewer than 750 employees and either up to €150 million in turnover or €129 million in total assets—will now benefit from simplified GDPR record-keeping obligations.

The reform addresses a key complaint from mid-sized companies that face a sharp rise in compliance costs once they cross the SME threshold. By scaling GDPR requirements more proportionately, the Commission hopes to encourage growth without discouraging companies from expanding their workforce or revenues.

In total, nearly 38,000 companies across the EU stand to benefit from the revised classification and related reforms. The GDPR simplification is one of several measures in the package, which also includes the elimination of paper-based product documentation, streamlined product conformity rules, and temporary exemptions from greenhouse gas registration for 10,000 companies in 2026.

The proposal comes as part of the Commission’s pledge to cut administrative burdens by 25% for all businesses and 35% for SMEs by 2029. It reflects a wider effort to foster a business-friendly regulatory environment while upholding core EU values such as data protection and sustainability.

The next package in the simplification series is expected in June 2025 and will focus on the defence sector.

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