Allied For Startups' Position on the Digital Package and Omnibus

For startups, simplification is essential for growth, competitiveness, and the ability to scale across borders. Complex, fragmented, and overlapping regulations create uncertainty and high administrative costs that smaller companies are least equipped to bear.

In emerging technologies like artificial intelligence, regulatory complexity can delay adoption and innovation, limiting Europe’s capacity to build globally competitive companies.

While startups in other regions benefit from more predictable and agile regulatory frameworks, European founders often face a patchwork of obligations and unclear guidance, slowing product development and discouraging cross-border expansion.

In the recent call for evidence, we welcome measures that aim to:

• Simplify digital rules and enhance coherence across EU legislation.
• Strengthen consumer protection while reducing “cookie fatigue” for users.
• Provide clarity on cybersecurity requirements, particularly incident reporting.
• Promote trustworthy and innovative AI through clear and harmonised standards.
• Enable cross-border access and sharing of data, fostering innovation and economic growth.

These measures help startups focus on innovation, serving customers, and scaling internationally.

At the same time, we call for:

1. Pausing new legislation until existing laws (AI Act, Data Act, DSA, DMA, NIS2) are fully implemented and harmonised.
2. Systematic innovation stress test for all new rules to avoid unnecessary obstacles for startups and scale-ups.
3. A realistic timeline for the implementation of the AI Act.
4. Simpler ePrivacy and cookie rules that are transparent for users but do not undermine startups’ business models.
5. Better access to data with interoperability, security, and safeguards to maintain public trust.
6. Protection for SaaS and AI business models under the Data Act, avoiding rules that could disrupt multi-year contracts or sustainable growth.
7. Simplified cybersecurity obligations that enable strong practices without excessive administrative burden.

By fully implementing existing frameworks and systematically assessing the impact of new proposals on innovation, the Commission can make the Digital Single Market more predictable, coherent, and startup-friendly.

A streamlined digital regulatory environment will empower Europe’s startups to scale faster, compete globally, and deliver the next generation of digital solutions for citizens and businesses alike.