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Dutch Startup Association & NLdigital worry about unintended effects of the Digital Markets Act on Dutch start- & scaleups

Recent research by the Erasmus Centre for Entrepreneurship (ECE) on behalf of Dutch Startup Association (DSA) & NLdigital shows a lot of uncertainty regarding the effects of the Digital Markets Act on the Dutch platform economy. DSA & NLdigital warn that the proposal in its current form will mainly have negative consequences for Dutch start- & scaleups. 

The Digital Markets Act (DMA) is new legislation whose objective will be to establish rules for what the European Commission defines as “gatekeeper platforms”. While DSA & NLdigital welcome the Digital Markets Act, which limits the power of so-called gatekeeper platforms, we are worried about the proposal in its current form. The DMA has the potential to open more doors to innovation by establishing clear and updated rules for competition within European digital markets. However, in its current form, the DMA could potentially hinder innovation, reduce competition and dissuade startups from starting or scaling up in the EU in the first place. 

Little research has been done regarding the unintended effects of the DMA on start- & scaleups. For this reason, DSA & NLdigital commissioned ECE to examine these effects. Through qualitative research methods (including interviews with start/scaleups and field experts), this research presents the voice of Dutch start- & scale-ups in the platform economy regarding the potential implications of the DMA. Overall, this research study demonstrates the importance of a more tailored (policy) approach when dealing with the platform economy. By paying attention to the needs of and differences between the smaller players in the ecosystem, the DMA has the potential to positively impact start- & scale-ups and thereby contribute to the main goal of the DMA: a more competitive platform economy. 

Earlier, DSA & NLdigital sent a letter to the commission of Digital Affairs, emphasizing the need for urgency and the importance of the topic. In this letter, we call the commission to action and urge them to arrange a roundtable session with relevant parties as soon as possible. To get to know more about our concerns regarding the Digital Markets Act, read our blog here

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