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Online platforms have transformed the way people communicate, commute and consume – everybody enjoys their services everyday. Startups benefit from this thriving platform economy – it helps them to grow, operate with little cost and connect easily with consumers and users. Instead of doing repetitive tasks, platforms allow entrepreneurs to innovate. 

Startup platforms are born from a user-need. They emerge to offer better choice and better quality to users. To be able to offer these manifold services, platforms need legal certainty such as ensuring that  they

would not be held liable for actions outside their control, such as acts by their users (e.g. via posting illegal content or selling counterfeit goods). 

Allied for Startups always welcomes when policy makers discuss how to tackle potential challenges raised by the growth of the platform economy. In this process it is equally important to identify and strengthen the policies that work. We believe that an approach that takes into account startup ecosystems would include:

01. Harmonisation

EU Rules should be the same for the 12, 000 startup platforms in the EU, be it the intermediary liability regime, the prohibition of general monitoring or the introduction of a new tax on digital services. To some extent such as taxation, global rules are the best for startups to adapt.

02. All growth stages rules

Good laws work for everyone, bad laws need exemptions. An exemption that would ease regulatory burden on early stage might increase the number of companies below this threshold. Exemptions give founders an unnecessary reason to stay below the glass ceiling. Their ambition to reach the stars from Europe would be challenged by a reward for staying small.

03. Smart legislation

Any new regulatory requirements should be proportionate and focus on the specific problem. A new layer of legislative measures should only be added on top if it adds legal clarity and makes it easier for startup entrepreneurs to navigate. In addition to that, regulators should consider the use of regulatory sandboxes as a tool to design innovation-friendly legislation while mitigating risks for users.

Read more about our position here

You can read more about our position here…

#DSA4startups

You can read more about our position here…

#DSA4startups