2023 of Italian startups passes through Brussels. Here are the main rules coming soon
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La Maneuver has not devoted much attention to startups. But if the Italian legislation remains unchanged, the most awaited novelties of the 2023 they will come from Brussels. A year in which the implementation of a series of rules is expected which will make more concrete the attention that the European legislator has so far dedicated to the theme of innovation, competition and the relationship between global technological giants and the European market. An action that will have an impact on all 27 European markets. And which will try to strengthen, between lights and shadows, the innovative entrepreneurial fabric of the Old Continent to create companies capable of scaling up in their European reference market.
The Digital Service Act
2022 ended with what according to many are the most important actions ever taken by Brussels on the European digital market: the Digital Markets Act (DMA) and the Digital Service Act (DSA).
The most relevant one for startups is the second one. It is a law that effectively obliges platforms, social media, marketplaces, ecommerce, search engines, startups working in the travel, hospitality and cloud markets, to make their algorithms transparent. They will have to communicate the number of users to the European Commission. And they will have to do it within the current year.
The Digital Markets Act
The Digital markets act, on the other hand, is aimed at large companies. As has been said, it is the rule that makes the action undertaken for years by Brussels to regulate the action of technological giants on the European market more concrete. The law seeks to create easier conditions for companies operating in sectors dominated by Google, Apple or Meta. Even this rule could translate into an advantage for European startups, often squeezed in their reference markets by competition from American giants. One of the main concepts of this standard is that of “Gatekeeper”.
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A limit beyond which a large company is held to very strict rules by Brussels. This could lead several companies on the way to climbing the European market to revise their plans. “Instead of creating regulatory barriers to defend the local market from the conquest of US big tech, local conditions should be created that are even more favorable than the American ones for the birth and growth of startups that become our champions”, comments the regulation to Italian Tech Gianmarco Carnivaleone of the founders of Allied for Startup, a European network of associations that aim to improve legislation on innovative companies.
Rules on the use of Artificial Intelligence
Not just the market. There are several rules expected for next year. Sifted has made a list of the main ones, those from which it expects the greatest impact. In July 2022, the EU adopted a law on artificial intelligence.
The official objective is to make this new technology, discussed, and whose implications have become the subject of debate in recent weeks after the explosion of the Chat Gpt phenomenon, is to make AI compliant with European principles; ensure that European citizens can benefit from it in accordance with the values and fundamental rights of the member states; but above all it is aimed at defining the fundamental elements of regulation of the scenarios connected to AI, trying to make AI operate safely in Europe.
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The consequence of this principle is that the EU could ban some uses of this technology. Especially those related to manipulation and social scoring. A topic that the current majority parties could like and not a little, with that of the premier who has included in his program the need to prevent the possibility that the “social score” can become a reality in Italy. The final text of the law should be discussed and approved within the current year.
The European law on startups
2023 could become the year in which there will be only one European law on startups. There are various proposals, only a few of these have been disclosed so far: a European-wide recruitment plan for profiles who work with deep tech technologies or pan-European venture capital funds. But 2023 is the year when things will be decided.
Deep tech, a term which refers to all those ‘deep’ technologies of innovation, those with a high rate of research and innovation, seems to be the term destined to reign in Brussels. Furthermore, one of the Commission’s plans could be to establish (once and for all) unambiguous definitions for startups, scaleups, deeptechs and unicorns. Terms of the varied nomenclature of startups, but on which there is currently a great deal of debate going on.
“One of the big problems for European startups is the fragmentation of national regulatory frameworks,” comments Carnovale. “Every harmonization is good because it brings the EU closer to being a single true market of 500 million users. But the risks of Dma and Dsa is that they ignore the peculiarities of startups and put them in difficulty by raising entry barriers for new entrants: the opposite of what is needed ”, he adds.
The Data Act and its impact on startups
Another law that could have an impact on the world of startups is the Data Act. More difficult in this case to achieve by 2023. In any case, the law under discussion establishes some mandatory data sharing requirements for industrial processes . Specifically, the whole world that goes from connected cars, to robots in factories, to household robots, to household appliances.
A law that aims to open up this data. Forcing companies to do so, in favor of other companies, governments and users. “This is good news for startups, because it will allow them to better exploit the potential of data to produce economic value and respond to consumer demands. An idea and the right set of data are often enough for an entrepreneur to become a startup”, Allied for Startups said in a statement.
Rules on the gig economy and platform economy
Further regulation could come towards the platform economy. Those that we have known in Italy with food-delivery apps but which more generally fall into the macro category of the gig-economy (economy of small jobs). Brussels has proposed measures to improve conditions for those working in these companies. The new law should define once and for all who is “addicted” to platforms.
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And as a consequence, the worker will be granted working and social rights: the minimum wage, holidays, paid sick leave and pension contributions. According to estimates from Brussels, reported by Sifted, there are currently active platform workers in Europe 28 million; of these, 5.5 million are to be “incorrectly” classified as self-employed. The prediction is that from 1.7 to 4.2 million of people will be reclassified as workers after this legislative intervention. Here too, the time horizon for seeing the standard approved is 2023.
No mention of startups in maneuver. “It always happens like this”
In Italy, it has been said, there are no hints of maneuvering on the topic of startups.
This is nothing new for Carnovale: “That the theme is not perceived as a priority, because the companies that are to be born are less identifiable as priorities than the existing ones. This was also the case at the beginning of the last legislature, and so also in the previous one. Through the associations, we will also help the new government majority understand that startups are the best opportunity they have to create GDP and jobs, in a short time and with very few public resources compared to traditional sectors in difficulty that ask for help”, he comments .
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