ToughCookie.eu

Why It Matters

The EU Commission's Digital Omnibus proposal would fundamentally change how online consent works. While presented as a user-friendly solution to "cookie fatigue," this change would have far-reaching consequences for businesses, consumers, and the entire digital economy.

Impact on SMEs and Startups

Massive Cost Increases

Research shows that limiting targeted advertising increases customer acquisition costs by over 100%. For SMEs operating on tight margins, this is effectively a tax that makes digital marketing unaffordable.

Data Loss

SMEs have already lost up to 60% of usable customer data since GDPR implementation. Browser-level consent would eliminate the remaining 40%, forcing businesses into inefficient "spray and pray" marketing with no ability to measure effectiveness.

Unequal Playing Field

Large platforms already possess vast amounts of first-party data. Browser-level consent would strengthen their position while cutting off SMEs' ability to compete, creating an insurmountable advantage for gatekeepers.

Cross-Border Barriers

The Digital Single Market promise depends on SMEs' ability to reach customers across borders. Without effective digital marketing tools, this promise becomes hollow, trapping small businesses in their local markets.

Consumer Impact

While marketed as consumer-friendly, browser-level consent would harm the very people it claims to protect:

  • Higher prices as businesses pass on increased marketing costs
  • Less relevant advertising, creating a worse online experience
  • Reduced product discovery and personalized recommendations
  • Less competition and innovation as startups struggle to reach customers
  • Fewer choices as SMEs exit the digital marketplace

By The Numbers

100%+

Increase in customer acquisition costs when targeted advertising is restricted

60%

Data already lost by SMEs since GDPR implementation

3

Major browser companies that would control all consent data

23M

SMEs in the EU that could be affected

The Bottom Line

After many SMEs have already disappeared from major city centres, Europe must avoid creating conditions under which smaller businesses also disappear from the digital marketplace. The future competitiveness of European SMEs depends on finding a balanced approach that protects users while ensuring fair market conditions.

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