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OPINION (COM(2025)0501 – C100092/2025 – 2025/0130(COD))

On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2016/679, (EU) 2016/1036, (EU) 2016/1037, (EU) 2017/1129, (EU) 2023/1542 and (EU) 2024/573 as regards the extension of certain mitigating measures available for small and medium sized enterprises to small mid-cap enterprises and further simplification measures

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Committee on the Internal Market and Consumer Protection · Rapporteur: Cynthia Ní Mhurchú

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✦ In short · AI summary of this text, generated 25 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

The Committee on the Internal Market and Consumer Protection gives its opinion on a proposal to extend certain SME measures to small mid-cap enterprises (SMCs) and to simplify rules. It proposes amendments to the draft regulation. The amendments define SMCs as enterprises with fewer than 1000 employees and either annual turnover not exceeding EUR 200 000 000 or annual balance sheet total not exceeding EUR 172 000 000. They raise the record-keeping exemption in the data protection regulation to enterprises with fewer than 1000 employees, and extend simplified tools, codes of conduct and certification to SMCs and other enterprises. They let SMCs and other enterprises use the EU Growth issuance prospectus, exempt SMCs from battery due diligence obligations, and require due diligence reports every three years instead of annually. The Commission would evaluate the amended regulations three years after entry into force and every five years thereafter, focusing on whether the SMC thresholds need review.

Committee position. The committee welcomes extending selected SME measures to growing enterprises and proposes amendments to define SMCs, raise thresholds, extend data protection simplifications, broaden access to the EU Growth issuance prospectus, and ease battery due diligence obligations.

Key points

  1. The rapporteur welcomes extending selected SME measures to growing enterprises, saying a calibrated threshold adjustment prevents a regulatory cliff edge during scale-up.
  2. Raising thresholds above the Commission's baseline can incentivise employment growth and keep scale-up companies in the EU, but overly ambitious increases could dilute SME policy.
  3. Amendment 1 changes recital 2 to say Union legislation achieves its objectives without imposing unnecessary costs, and commits to reduce administrative burdens by 25% and 35% for SMEs.
  4. New recitals state that support for SMEs remains a key priority and that support for SMCs must not challenge SME resources or confer disproportionate advantages over SMEs.
  5. New recitals say mitigating and simplification measures should be extended to SMCs where appropriate, proportionately and without weakening key regulatory obligations.
  6. Amendment 8 defines SMCs as enterprises that are not SMEs, employ fewer than 1000 persons, and either have annual turnover not exceeding EUR 200 000 000 or annual balance sheet total not exceeding EUR 172 000 000.
  7. New recitals require the Commission to evaluate the amended regulations three years after entry into force and every five years thereafter, focusing on whether SMC thresholds need review.
  8. New recitals say exemptions for SMEs and SMCs should not create regulatory gaps or loopholes, and that thresholds should be based on objective, verifiable and up-to-date data.
  9. Amendment 14 and 15 extend the record-keeping derogation in the data protection regulation to enterprises and organisations with fewer than 1000 employees, unless processing is likely to result in a high risk.
  10. Amendment 23 requires supervisory authorities and the Commission to ensure SMEs, SMCs and enterprises with fewer than 1000 employees have access to simplified tools harmonised at Union level.
  11. Amendments 26 and 27 let SMCs and other enterprises use the EU Growth issuance prospectus, and exempt SMCs and other enterprises from battery due diligence obligations.
  12. Amendment 28 requires battery due diligence reports every three years instead of annually, and without undue delay after a significant change occurs.

Who is affected

  • Small mid-cap enterprises (SMCs): gain access to SME mitigating measures, simplified data protection tools, the EU Growth issuance prospectus and battery due diligence exemptions.
  • Micro, small and medium-sized enterprises (SMEs): keep priority support, and the record-keeping exemption threshold rises to fewer than 1000 employees.
  • Enterprises and organisations with fewer than 1000 employees: benefit from the data protection record-keeping derogation unless processing is high risk.
  • Economic operators under the batteries regulation: must review and publish due diligence reports every three years instead of annually.
  • The Commission: must evaluate the amended regulations three years after entry into force and every five years thereafter.

Figures and deadlines

  • Around 20% of today's small mid-caps were SMEs three years earlier.
  • Administrative burdens to be reduced by 25% and 35% for SMEs.
  • SMC definition: fewer than 1000 employees and either annual turnover not exceeding EUR 200 000 000 or annual balance sheet total not exceeding EUR 172 000 000.
  • Record-keeping derogation applies to enterprises and organisations with fewer than 1000 employees.
  • Battery due diligence exemption applies to economic operators with net turnover of less than EUR 200 million.
  • Battery due diligence reports to be reviewed and made public at least every three years instead of annually.
  • EU Growth issuance prospectus amendments apply from 5 March 2026.
  • Commission evaluation three years from entry into force and every five years thereafter.