Commissioner Michael McGrath has acknowledged the difficulties sole traders face under the GDPR but stopped short of promising a swift fix, instead pointing to targeted amendments in the proposed Digital Omnibus as the vehicle for reform. In a written answer on 9 July 2026 to a question led by Christophe Gomart (PPE) and five other MEPs, McGrath confirmed that sole proprietors are not legal persons under EU law, meaning their business data remains personal data under the GDPR. This creates a data gap for business information providers (BIPs), who must navigate complex legitimate interest tests or obtain consent to process such data, with inconsistent interpretations across member states.
McGrath noted that the GDPR already balances data protection against other fundamental rights, citing the anti-money laundering package as an example of proportionate safeguards. He highlighted the 2025 Digital Omnibus proposal, which includes targeted GDPR amendments aimed at boosting competitiveness, increasing legal certainty, and reducing costs. The Commissioner also referenced the July 2025 GDPR implementation dialogue, which reaffirmed the regulation's balanced framework, and the European Data Protection Board's commitment to providing ready-to-use compliance templates. However, the answer offered no immediate timeline for the Omnibus's adoption or specific measures to distinguish personal from professional data for sole traders, leaving BIPs and sole traders awaiting legislative progress.
Sole traders face continued administrative burdens and potential economic exclusion due to the data gap. BIPs must navigate legal uncertainty and compliance costs. The Commission's Digital Omnibus proposal, if adopted, could reduce these burdens by clarifying data processing rules. Privacy advocates may view any distinction between personal and professional data as a potential weakening of GDPR protections. The answer signals a cautious, legislative-driven approach rather than immediate regulatory guidance.