The Business and Human Rights Centre invited Allied for Startups to respond to the publication "Addicted to the algorithm: How Big Tech lobbies to keep us hooked on social media" by Corporate Europe Observatory. Allied for Startups responded.

Thank you for your e-mail and for offering Allied For Startups (AFS) the opportunity to respond. We appreciate the chance to clarify our position.

We respectfully reject the claim that AFS advocated to prevent the adoption of digital rights protections under the upcoming Digital Fairness Act.

Our public submission to the European Commission’s Call for Evidence, titled “A Digital Fairness Act that works for startups”, clearly states that we fully support consumer protection and transparency in digital markets. Startups depend on user trust. Clear rules, effective enforcement and fair competition are not obstacles to innovation; they are conditions for it.

Our engagement in the DFA consultation focused on three principles.

First, regulatory coherence. The EU already has an extensive consumer and digital framework, including the GDPR, the Unfair Commercial Practices Directive, the Consumer Rights Directive and the Digital Services Act. We argued that any new initiative should avoid duplication and ensure alignment with existing rules. Calling for clarity and enforceability is not opposition to digital rights; it is about making them work in practice.

Second, proportionality and competition. Startups cannot absorb regulatory complexity in the same way as larger companies. Broad restrictions on lawful targeted advertising risk disproportionately affecting early-stage firms. When conducted in compliance with the GDPR, targeted advertising enables startups to reach customers and scale efficiently. This also benefits consumers: by lowering barriers to entry, it supports a more diverse and competitive marketplace, offering greater choice and viable alternatives to existing players.

We agree that any harmful practices should be addressed clearly and effectively. At the same time, lawful and transparent advertising or personalisation should not be conflated with manipulative behaviour.

Third, business model neutrality. Many startups rely on advertising revenue to offer free or low-cost services. Regulation should remain neutral as to business models, provided they comply with consumer and data protection law.

We remain committed to constructive dialogue with policymakers, civil society and consumer organisations to ensure that the Digital Fairness Act strengthens consumer trust while preserving the conditions that allow Europe’s startups to innovate and compete.