Allied For Startups' Position on the Digital Fairness Act

As the European Commission prioritises simplification, there is growing recognition of the need to reduce regulatory burdens. Mario Draghi’s competitiveness report and Commissioner Zaharieva’s remarks at the Politico AI & Tech Summit both underline the goal of being “innovation- and business-friendly.”

While Allied For Startups supports strong consumer protection, we believe that existing EU laws – including the GDPR, Consumer Rights Directive, UCPD, and related frameworks – already ensure high protection. A new Digital Fairness Act (DFA) risks duplicating these rules and adding complexity. The focus should instead be on simplifying and harmonising existing law.

We also share the Commission’s concern about the use of dark patterns and agree that this is a legitimate issue to address. However, any new measures must be proportionate, evidence-based, and designed to promote transparency without hindering innovation.

In our response to the call for evidence, we advocate for the following:

1. Simplification, not duplication: Focus on streamlining and harmonising existing consumer law instead of introducing overlapping rules through the DFA. This will reduce compliance burdens and increase legal clarity for startups.

2. Supporting targeted advertising and data-driven growth: Maintain startups’ ability to use targeted advertising under the GDPR’s “legitimate interest” basis. Restricting these tools would hinder startups’ ability to reach customers, validate ideas, and compete effectively with larger players.

3. Support sustainable growth models: Recognise that data-driven advertising enables startups to offer affordable or free services, accelerating adoption and fostering innovation without excessive reliance on venture capital.

4. Ensure fairness and flexibility in business models: The DFA should remain neutral and support a variety of models – paid, free, freemium, or subscription-based. Free trials, in particular, are essential for market entry and consumer choice and should not be overregulated.

Europe’s digital competitiveness relies on rules that protect consumers without stifling innovation. The Digital Fairness Act should simplify, not duplicate, existing laws – ensuring clarity, flexibility, and fairness. By preserving targeted advertising, supporting diverse business models, and focusing on enforcement over new regulation, the EU can foster a digital environment where startups and consumers both thrive.