The European Commission has proposed the Digital Omnibus package, a legislative proposal to amend the AI Act, the GDPR, the ePrivacy Directive, the Data Act, and several cybersecurity frameworks in a single stroke. The proposal includes delaying the core obligations for high-risk systems by up to 16 months, creating a new legitimate interest basis under the GDP for companies training AI models on personal data, narrowing the definition of personal data itself, and removing the obligation for AI providers and deployers to ensure staff AI literacy. These concessions have been criticised by a coalition of 127 civil society organisations as being the biggest rollback of digital fundamental rights in EU history. However, Anu Bradford argues that the technological gap between the EU and the US cannot be attributed to the stringency of European digital regulation. He argues that Europe cannot compete with the United States and China in artificial intelligence if its companies are buried in compliance paperwork. The Omnibus also fails to address the absence of a genuine digital single market, shallow and fragmented capital markets, punitive bankruptcy laws, and an immigration system that makes it harder to attract global tech talent.