Subcontracting is becoming a dominant business model in Europe’s platform economy, enabling digital labor platforms to externalize employer responsibilities while retaining control over work through algorithmic management practices. However, it is only marginally addressed by the European Union’s Directive on Improving Working Conditions in Platform Work. This article analyses the regulatory challenges posed by subcontracting arrangements by drawing on findings from the Fairwork Germany reports and discusses emerging regulatory proposals to address them. It concludes that the Directive presents a timely opportunity to strengthen worker protections in Germany’s platform economy and promote fair working conditions for all.