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18. July 2025
Eu Mid-Sized Platforms Sound Alarm On Proportionate Regulation Or Risk Being Left Behind
The Middle Market, Major Stakes: Why Founders Must Engage in Policy Before It’s Too Late
Timing is everything in the world of tech, and this mantra rings true not only for product launches and fundraising rounds but also for regulation. The recent emergence of Middle Tech Europe (MTE), a coalition of mid-sized platforms advocating for proportionate regulation in the EU, highlights the importance of engaging in policy-making at an early stage.
As a founder of one of these mid-sized platforms, Yubo, I can attest that timing is crucial when it comes to regulatory frameworks. Last month, our company joined Reddit, Discord, Pinterest, Automattic, Patreon, and Dailymotion as a founding member of MTE, reflecting the diversity of the digital ecosystem and bringing forward perspectives often overshadowed by the Big Tech dominance.
The initiative had been quietly in development for months, and many of us had experienced firsthand how policy frameworks could unintentionally entangle companies that operate at an entirely different scale. We came together around a shared belief: mid-sized platforms should have a clearer voice in shaping Europe’s digital future.
MTE was created to offer a “middle voice” in policymaking, advocating for regulation that reflects the diversity of audiences, risks, and business models across the digital ecosystem. However, beyond coalition-building, this moment holds a much broader lesson for early-stage founders: Engaging in public affairs is no longer a matter of scale, it’s a matter of relevance.
The idea for MTE emerged from a shared reality. Each of our companies was investing in trust and safety, data protection, and platform integrity — but we were doing so in the shadow of frameworks designed primarily with Big Tech in mind. The regulatory burden was growing, but the dialogue rarely accounted for business models like ours.
Our companies operate at scale, but with leaner teams and often narrower margins. We are global in reach, but local in structure. And we innovate in categories such as content moderation, community building, or creator monetization — where nuance matters.
EU Policy: A Global Blueprint
Although MTE is rooted in Europe, many of its members, including Reddit, Patreon, and Discord, are headquartered in the United States. That’s not accidental. EU regulations are increasingly shaping global tech norms. Whether it’s age assurance, algorithmic transparency or AI risk management, European rules are already serving as a prototype for frameworks under debate in Washington, D.C., and beyond.
That means U.S.-based founders would be wise to treat EU policy as an early signal — not a distant concern. EU regulations are already shaping global tech norms, and ignoring this trend could lead to being caught off guard by future requirements.
Practical Guidance for Founders
So what does this mean for startup leaders and their investors? Here are some practical takeaways:
- Treat regulation like infrastructure. Just as you plan for scaling your backend or securing your first SOC 2, plan for compliance and engagement. It’s not just a risk; it’s a roadmap.
- Engage early, not just when required. The worst time to begin navigating regulatory requirements is when you’re already subject to enforcement. Understand your exposure areas and get ahead.
- Think collectively. Whether through coalitions, trade groups or informal working groups, founders have more influence when they coordinate. MTE started with a conversation and grew into a structured initiative. You don’t need a policy team to start a dialogue.
- Build your reputation with policymakers before you need them. Just like with investors, trust is built over time. Transparency, consistency, and credibility matter.
Looking Ahead
For too long, the conversation around tech regulation has been framed as a tug-of-war between government and a handful of dominant players. That framing is incomplete. There’s a third category — companies like ours, and likely yours — that are building ambitious, differentiated platforms with safety and integrity at the core.
The regulatory decisions being made today will determine who thrives tomorrow. If you’re building something real, now’s the time to make sure your voice is heard.
As CEO of Yubo, I bring innovative vision to the business and strive to cultivate a culture of creativity across the Yubo team. The future of tech regulation depends on the collective efforts of founders like you and me.
In conclusion, engaging in policy-making is no longer a matter of scale; it’s a matter of relevance. As mid-sized platforms, we have a unique voice that can shape the digital ecosystem. By treating regulation as a strategic lever, building our reputation with policymakers, and coordinating our efforts, we can ensure our voices are heard and our futures secured.
The middle market is not just about size; it’s about nuance, diversity, and innovation. It’s time for founders to take center stage in the conversation around tech regulation. The stakes have never been higher, and the rewards of being at the forefront of this revolution will be worth the effort.