The European Commission has just released its 2025 Work Programme, outlining key initiatives to strengthen Europe’s competitiveness and drive regulatory simplification. For independent app developers and small and medium-sized enterprises (SMEs), these changes could ease regulatory burdens, but some proposals raise concerns.
ACT | The App Association strongly supports many of these initiatives, which align with our mission to foster innovation while ensuring a business-friendly environment. While the programme offers SMEs a lot of hope and support, one potential drawback stands out: the rumoured withdrawal of the Standard-Essential Patent (SEP) Regulation.
Withdrawing the SEP Regulation hurts SME innovation
The European Commission’s intent to withdraw the SEP Regulation threatens the ability of SMEs to innovate and compete. Fair, reasonable, and non-discriminatory (FRAND) licensing ensures affordable access to critical technologies like Wi-Fi, high-efficiency video coding (HVEC), and 5G. Without these licenses, SMEs face costly barriers that limit their ability to develop new solutions, scale, and enter competitive markets.
Pulling back on the SEP Regulation leaves smaller companies vulnerable to unpredictable licensing costs, hindering growth in the EU app economy and applying the brakes to Europe’s Digital Decade goals. We urge the Commission to revisit this issue and ensure that the patent system supports, rather than stifles, SME-driven innovation.
Reducing regulatory burdens on SMEs
The European Commission’s 2025 Work Programme emphasises regulatory simplification. Notably, the programme includes Omnibus simplification packages that aim to reduce obligations for SMEs by 35 per cent, significantly easing the bureaucratic burden that European small enterprises have long faced. This overdue change is essential to fostering a more effective, business-friendly environment that allows SMEs to focus on growth and innovation.
The intent to withdraw the AI Liability Directive is another positive step. It aligns with our longstanding concerns about regulatory overburden on SMEs developing AI-driven solutions. With the AI Act already in place, we urge policymakers to focus on clear, consistent compliance guidance and streamlined pathways for early-stage AI development. Striking the right balance between oversight and innovation is essential to fostering a competitive and responsible AI ecosystem in Europe. Similarly, the intent to withdraw the ePrivacy Regulation, which was first proposed in 2017, is also a welcomed change. This decision would prevent potential regulatory inconsistencies and ensure that businesses can innovate without facing overlapping and conflicting privacy laws across the EU.
Beyond simplification, the Commission’s focus on investment and competitiveness is a step in the right direction. The proposed Savings and Investment Union aims to unlock private capital, potentially improving financing options for tech startups and scale-ups. Similarly, the upcoming Innovation Act will focus on addressing obstacles to scaling up SMEs, particularly in areas like access to finance, entering new markets, and attracting talent. Finally, the Commission’s plans to develop a ‘28th legal regime’, which aims to harmonise corporate law, insolvency, labour, and tax rules, could help reduce the fragmentation that often hinders SMEs from scaling beyond their home markets.
Conclusion
As these proposals take shape, the App Association stands ready to contribute to a regulatory framework that fosters an agile, competitive, and digitally advanced Europe. Our focus remains on ensuring that policies are proportionate, innovation-friendly, and truly beneficial for SMEs.
If you are an SME looking to stay engaged on this issue, mail Brad Simonich here!