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PRESS RELEASE: The Digital Services Act could empower startups and the wider EU economy.

October 27, 2020
press release

[Brussels, 27 October 2020, contact: ines@alliedforstartups.org] Allied for Startups in partnership with Oxera have published an economic impact assessment about how the Digital Services Act will affect business users of platforms. 

The study was conducted by Oxera, who interviewed 1000 businesses across four Member States (Spain, Ireland, Bulgaria and Germany). The findings show that business and platforms are highly interconnected and hence, changes to the liability regime would have a ripple effect across the market. Scenario modelling of strict liability rules finds that more than 38% of businesses would suffer from limiting posts, reviews or an increase in monitoring costs,  2.3-3.7 m gig workers would be unable to take on last-minute shifts if posts are delayed. Finally, small businesses could lose more than 23bn Euros under the most stringent DSA rules

Speaking about the study, Allied for Startups Director EU Policy Benedikt Blomeyer said “Startups empower other economic actors like SMEs. This study underlines what’s at stake: the DSA does not just affect tech players, but the whole economy.

However, alternative modelling of “automated tools” or “procedural guidelines” finds 55% of businesses would benefit from further harmonisation and regulatory consistency, for instance on the Country of Origin principle under the Digital Services Act. It would enable platforms to take proactive measures and implement procedural guidelines which  can provide legal certainty to platforms and businesses. 

Blomeyer commented: “The Digital Services Act has the potential to be the cornerstone of an open, innovative platform economy to the benefits of European citizens and businesses”

You can find our study “The impact of the Digital Services Act on business users” here

Allied for Startups is a worldwide network of over 40 advocacy organisations focused on improving the policy environment for startups. Our mission is to ensure that the voices of startups are heard in government. For more information on Allied for Startups including a full list of our network, visit the website at www.alliedforstartups.org