I don't know if this EU regulation will work or not (most likely not), but I can share how it is done in China (where package volume is orders of magnitude higher).

China identifies "choke points" most packages pass: large platforms and logistics companies. Yes, Chinese e-commerce is more centralized on Alibaba/JD/PDD etc, but there are actually much more logistics companies in China than in EU.

They also do not introduce these regulations "from tomorrow" (well, sometimes they do, but it's a different topic). E.g. the non-degradable plastic regulation was issued in 2020 to come in effect in 2025. This gives time to prepare and implement (unlike EU border controls mess...)

So now if something is shipped in non-degradable plastic, the logistics company is fined along with the sender. This is much more scalable and easy to implement. Logistics companies might rise their prices a bit in light of expanded work scope, but it would be peanuts compared to every individual seller.

Could EU just ask DHL/Hermes/whatever to charge an additional €1 "for recycling"? Yes, but...

But of course EU is fundamentally different in a way that the politicians need to please the electorate, so nothing is really planned ahead.

One of the biggest problems that I have in the EU is that it's almost federated. EU will pass laws, countries will adopt those laws, but you end up with 20-24 different versions of those laws. With some countries being strict or lenient about the law that everyone agreed to. And a lot it is written from the perspective that large corporations are the only ones who do business throughout the EU. It's completely missed that small entrepreneurs may also want to take part. Modern technology makes it feasible, but old ideas just drags it down.

A couple of things to note:

1. The EU commission wanted a single central registry

2. It was the member states, via the Council of Ministers, that torpedoed this.

3. The EU now advises its member states to not implement/enforce this

4. Until the correction, which is on its way, can be fully enacted.

So the same old same old: member states do shitty stuff and blame the EU.

I can attest to this. People say the Netherlands is among the best countries to be an entrepreneur. The visa policies for starting a business are good. But man, the whole tax system, shares, and holding management—belasting breathing up your neck—is horrible when I am trying to do firefighting. You never know when you might get hit by a tax bill. The tax system is built towards benefitting large organizations, and they can afford expensive tax consultants who can help them dodge it. The VC ecosystem is limited and not risk averse.

Having operated in multiple geographies, US is really business friendly.

This echos the FCC rules in the US, which I believe are gotten around by not complying.

Even if you are not making an intentional radiator, and/or are using datasheet-specified layouts or modules, you still must comply, which makes these businesses non-viable if complying.

I believe Adafruit gets around certifying every device by declaring themselves a cellphone company and being on good terms with regulators. This isn't viable for the sort of businesses and people described by this article.

I'm not sure about the Ali/Amazon products. I'm assuming they just are not complying.

It appears there is space for "packaging and distribution in EU as a service" business model.

Creators, producers and manufacturers in many fields do not distribute or sell directly to consumers (musicians can't directly upload to Spotify and Apple Music; film producers don't upload to Netflix, writers don't print their books).

A small-time maker may pay a fee to the established distributor of the physical products, who takes care of compliance, and uses their packaging and distribution channels.

PPWR is an EU catastrophe.

Firstly for the reasons outlined in the article: it essentially makes being a micro/small business in the EU impossible, if your market is other EU countries.

Secondly because it validates insidious populist views that the EU institution is useless and incompetent at a fundamental level.

The legislation is so ABSURDIST that the EU have actually asked companies to ignore the law that they just implemented. I can assure you it is difficult to ignore a law that comes with a €200000 fine for non-compliance.

This is a great read and I can extend this argument really to any small business. Tax filing, VAT, bookkeeping, privacy, consumer, workplace and sectoral requirements frequently impose a disproportionately large cost on microbusinesses. EU is more and more split along the enterprise and VC backed line, and everyone in between has disproportionate costs. My barber in Stockholm often complains about this - the amount of money they would need to earn to overcome all these costs is staggering. So they often do lots of gigs on the side.

UK has similar rules but, as with pretty much all other similar regulations, there are de minimis carve-outs:

≤ £1m turnover: no packaging EPR obligation, regardless of packaging volume.

£1m turnover + >25 tonnes of packaging: small producer obligations.

£2m turnover + >50 tonnes: large producer obligations.

The EU has been removing de minimis thresholds because 'China' can easily 'exploit' them. They're kind of right, but it's obviously an insanely stupid situation when someone selling something as a hobby, or just starting up on their own gets dragged into this.

Anti-EU regulation sentiment really seems to have an uptick in line with widespread availability of LLMs.

The EU isn't perfect, but the catastrophising I read feels mostly like astro-turfing attempts at destabilisation.

It's probably more easily noticed from inside the EU.

This is actively preventing me from sending packages to other countries as a maker. No matter how small the risk is, I don't want to risk a 5000 euro fine for sending a small amount of packages to other EU countries.

The complaint is totally understandable, BUT the examples do not make sense. Arduino did not start as some dude selling less than 10 boards a year, but as an educational tool, which THEN ramped up to 100s of boards produced every day.

If your perspective is "I may sell 10 boards this year, maybe", your target is some local/national maker-faire, not a EU marketplace.

I think makers with such limited productions will just fly under the radar (if you sell so little, it's likely you probably won't need to incorporate or declare taxes in a lot of EU countries). If they sell 100s of products across EU, they probably have at least one over-worked accountant taking care of existing compliance stuff.

Doesn't this new law overlap with the existing system? A manufacturer within the EU is already paying taxes, which in part should be used for managing waste. If they buy the packaging materials from another EU company, well that company is also paying taxes already. If they are importing from outside the EU, the packaging material pays taxes.

This is not new though. "We do not sell to EU end users."

https://pcengines.ch/recycle.htm

"... there are separate registration and recycling schemes for each of the 28+ EU member jurisdictions (and even a few of their provinces). What part of COMMON MARKET was so hard to understand for EU lawmakers ?

Since there is no single registration available, and separate registration would involve mindboggling complexity, bureaucracy and costs, we do not sell to EU end users until the EU gets their act together. Please order from EU based distributors, or as a business customer.

Business customers are expected to meet their obligations by registering in the EU countries they sell in. "

That was already ages ago when I did some sofware for them. 2007 ish if I'm to trust my Linkedin.

As someone living in the tiny country of Estonia with just about 1.2 million residents, this worries me. No one but the biggest online shops in the EU will bother with the paperwork for such a small market. I'm expecting my import options to drop sharply in the coming years because of this.

I've seen some conflicting claims on this law and to me it sounded like it affects mostly producers of packaging, but everyone else seems to be complaining about it too. Did everyone actually read the law or is this a game of telephone?

> The main idea of EPR is sensible: businesses that place packaging on the market should help finance its collection and recycling.

Wouldn't it be better to put the burden on packaging manufacturers?

as the whole world crushes small entities one has to wonder whether the EU would be the saviour or not. Apparently not. With its rules, they merely help crush small business as per usual.

I heard in the 50s an american could just startup a business installing septic tanks. But now the same person would need a myriad of regulations to be met, heavy equipment use mandated, all of which raise overhead to a level where its impossible to get off the ground.

I always felt the EU were the "good guys", IE not allowing corps to steam roll everyone, what with their rules fining poor behvaiour such as privacy violations, chargers being non standard etc.

However the same problem exists in weird ways you wouldnt even imagine.

For example if someone walks into a small "mom and pops" coffee shop and accuse the owner of "ejecting them due to harrasment reasons", that results in a court case, which can bankrupt the whole margin thin enterprise.

You might say, wait how on earth would a random troublemaker get funding to take a cafe to court, and for what benefit? For one its easier for a settlement to be reached regardless of fault that benefits the claimant than a long court process.

Now how could claimants have the resources? Unbelievably it turns out there are free national non profit corporations that will take any claim for free to court for situation mentioned above.

So what happens in the end? The small coffee shops cant survive but the larger corps who can afford the random payouts are fine, the competition seems to go away on its own and the claimants are happy with what amounts to random payouts for little work.

Please look it up it, and correct me if im wrong, I only know this from some little research into the forays of why small coffee shops find it hard to survive in western landscapes and risks, as I wanted to open my own coffee shop!

In summary, as always the road to ruin is paved with good intentions. So the EU trying to help a little guy in a specific context, ends up creating a situation that makes all small coffee shops non profitable.

I have no solutions.

I'm sorry I don't buy this. A "micro-entrepreneur" should be trusted to design a product complying with the regulations of 27 member states but cannot be bothered by the packaging requirements?

My guess is that most of the products on this website simply do not comply with the norms and regulations they ought to, thus why care if they don't comply to waste management either.

I imagine what will happen in practice is that the makers will simply ignore the law and hope not to get prosecuted or audited?

And then there is Temu (as a platform). They've done all the necessary EPR/PPWR agreements with various European countries/vendors. It handles all the fees and reporting for Chinese sellers.

It is possible to ignore laws if it's too much bother to comply with them... it's hard to imagine the authorities will come after someone for mailing out 10 anti-static bags.

Is this killing the makers or the marketplace? Can the micro-entrepreneurs still list/sell via larger marketplaces? I can see how this is killing the micro-marketplace though.

Sounds a bit like registering and reported to each country's VAT system, which almost no online creators do (even ones making hundreds of thousands of online subsription revenue)

They'll get adequate feedback in the next elections If this doesn't get stopped, otherwise every business and their peers will likely vote for EU critic parties which means far left or far right.

Is it actually a bad thing? From Asia I definitely see so much shady business practices from small businesses. Customer protection is non-existent. Keeping small businesses in drive prices down, but also drive wages down. I don’t think this is a compromise that many people would be happy with.

Odd that there not already is a minimum threshold in place.

This would even apply when selling a few electronic knik knaks on ebay?

I believe the view layed out in the article is wrong. The German Wikipedia has an article about the PPWR. One Paragraph is saying: "The distributor must verify that the manufacturer and, where applicable, the importer have fulfilled their requirements, that all necessary markings are affixed to the packaging, and that the manufacturer is registered in the producer register pursuant to Article 44." That does not sound like you are responsible for registering yourself but you need to purchase your packaging from registered vendors and you need to verify that. Sound reasonable to me.

Laws like this really need to only be enforced for companies of certain sizes.

Is there room for a company in the EU to spend some time doing the research as to what packaging is able to be used across all the different countries, then selling affordable packaging that meets those standards across the board? And also publish resources for how to effectively package stuff? A genuine question, I’m not from Europe. It just seems like something that would benefit everyone and help make this less of an issue. Or maybe this is the responsibility of the postal systems themselves? If you’re gonna mandate a certain way of doing things, at least give people the tools to do it the way you want them to.

Europe has been steadily eradicating freedom and entrepreneurial spirit for the past 50 years. They will suffer badly many years later. They are slowly walking to disaster, but nobody cares. Go on, downvote me for telling the obvious truth :)

One additional problem is that this reduces options as a consumer in smaller EU countries. Smaller ships no longer are willing to take on the risk and bureaucracy of selling to smaller markets, meaning only a few, large players remain. Like Amazon, Temu, Aliexpress, or larger local companies.

The workaround here tends to be simple: Don't sell stuff as a incorporated business. Only do that once you cross a certain level of revenue.

But as with anything here in Europe, check your laws.

These blog posts often allude that the EU regulatory bodies are just slightly incompetent or short-sighted and these fragmented national models happen by accident. But unfortunately that's not the case: The EU pretends to be a single-market and almost mantra-like the EU officials keep repeating it. But the fact of the matter is that there is neither a single market nor is the European public ready for one. If there was a true single market (like the US has one) - then this would very quickly lead to massive changes in the labour market. Imagine all the Romanian construction companies suddenly building office buildings in Madrid. Or countless Polish architects suddenly undercutting the much more expensive architects in Milano. Whether they know it or not, Europeans would like to have all the benefits of a single market (mostly more competitive pricing) without any of the downsides (massive labour shifts) - but that option doesn't exist. So what they do is harmonize regulation for a few big corporations, while all the smaller companies (and their employees) still get to keep their national moats.

FTR. The whole PPWR process started back in 2015, there was a public consultation period in 2020-21, the new rules were entered into force in February 2025 and now the general application happened. So there was plenty of time to prepare, as far as I can see. People that run a business in the EU and now claim to be surprised, they, well, surprise me.

If you are a small maker and looking for the loophole here, this is it: "PPWR excludes an object where it is genuinely an integral part of the product, necessary to contain/support/preserve it throughout its lifetime and intended to remain with it."

Are these rules actually that destructive, or are we witnessing astroturfing campaign?

Maybe we need to start charging the packaging materials explicitely on the invoice as individual items such as they become part of what the customer has ordered.

It's typical eco-suicide: give eurocrats more power and fake work to do, pretend most recycling regulations aren't scams, and practically destroy trade between countries in the union because you need one representative in every single country you want to sell anything in. As if adding a 5 (soon to become 7€) fee (plus tax) for every line of item (not package) outside the union wasn't enough. It is also quite obvious both must've been heavily lobbied by major retail groups through EuroCommerce.

Feedback for this utterly deranged regulation can be seen below, over 5k entries by many businesses in EU:

https://ec.europa.eu/info/law/better-regulation/have-your-sa...

Europe would rather regulate companies out of existence than grow them.

The 'they don't realize what regulation does to entrants' explanation is implausible.

The bureaucrats are not naive and are perfectly aware that these kinds of laws produce incumbent protection [0],[3]. Even if they don't directly intend it each time, analyse a big amount of EU policies and see that they produce incumbent protection by effect (although there are some notable counterexamples, such as DMA; but DMA targets more established external companies even harder; so even here small player advantage seems to be just a secondary effect of protectionism against external competitors like Alphabet, Apple, Meta, ByteDance, which are dominant).

My hypothesis is that they're not bothered, because why would they? EU elites don't have a strong dependence on creative destruction, at least for the Franco-German axis. Elites are established beyond belief and can extract value in other ways (see below), e.g. in Germany it takes '6 generations for descendants of a bottom-decile household to reach mean income' [1].

So just kill or discourage anyone trying to penetrate the barrier, the really successful ones will open on, say, NYSE anyway and won't bother them [4]. EU can afford this strategy because it still has enough of a middle-class to control a consumer market that China/USA can't ignore, so they can extract value from both external companies (compliance costs, fees) and citizens (taxes, higher prices) because of the immobility of that consumer market [2]. So instead of removing structural barriers to entry, they just leave much of that structure intact and build compensating institutions on top of it (grants, EIC funding)

[0] TOOL #22. THE "SME TEST": https://commission.europa.eu/document/download/5d2011d7-5470...

[1] 'Mobility patterns...' https://www.oecd.org/content/dam/oecd/en/publications/report...

[2] https://academic.oup.com/book/36491

[3] 2 Fostering competition..., e.g.: 'Industrial and labour market policies have tended to favour incumbents and hampered the reallocation of resources to young and innovative firms, weighing on allocative efficiency and slowing down structural change' (https://www.oecd.org/content/dam/oecd/en/publications/report...)

[4] https://www.elibrary.imf.org/view/journals/001/2024/146/arti... e.g. 'Looking at EU startup exits through IPOs, two-thirds occurred outside the EU in 2023'

The socialist state of the EU is why god invented tax planning and the possibility to open your company abroad.

I've been doing business in the EU a long time, and in order to be successful you need to:

1. Never follow all the rules. Focus on your business and customers, and ignore/pay someone to deal with the rest if it ever becomes reality.

2. Start your company in a low cost, low tax jurisdiction. There are plenty of them in the forgotten corners of the EU, or why not a US LLC.

But I think the EU will implode in a decade or two and return europe to a state of innovation and profitability. The nationalist trend will lock any decision making in the EU, and the EU:s deep state will take care of the rest, enriching itself at the cost of the tax payer. The result... countries will leave or just silently start to ignore the EU rules, and then block any legal moves the EU tries to attempt at the EU level.

Isn't this double dipping? Consumers typically already pay for waste disposal to their local government.

That said, the EU and West in general through corruption like to pass legislation that ensures only big corporations can afford to comply with.

As usual, throwing babies out with the bath water

These things are going to be sent by mail. You could just have the postal service charge a few extra cents.

Regulatory capture in this case.

They need proportionality and size/qty exemptions

Whining on the order hand is always easy.

Seems like a problem Lectronz could solve for its makers.

How is CrowdSupply, US based, managing?

Sometimes I wonder if the lawmakers in EU are brain dead. The whole point of economic union is that free movement of goods without custom tax and this new rule is practically a custom tax for each country.

My father had to give up selling cat houses from one smaller EU country to others because of the new packaging regulations. Hard to believe the EU has not foreseen this being impossible to deal with for micro-businesses. Honestly his friend who is doing Photovoltaics is also now forced to stop shipments to most other EU countries due to this law. I assume we are talking about hundreds of thousands of small businesses.

This is a direct result of national politics.

EU member states want all the benefits of integration without giving anything up, especially things that they consider aspects of national sovereignty.

* * *

I'll give you an example.

I'm from Romania. In Romania in 1990 there were no private enterprises, so everything was state owned. There was a HUGE demand for commerce/retail, so small local businesses popped up. They were very basic because everything was brand new and expertise was extremely scarce. No one knew anything about modern supermarkets, supermarket chains, banks, loans, credit lines, basically everything related to modern market economies.

As Romanian headed for EU integration, foreign invested started... investing. In retail that meant that because Romania is fairly populous by EU standards, everyone was tempted by a potentially big and growing pie that was almost void of serious competition.

So we ended up with Lidl (German), Kaufland (German), Metro (German), Carrefour (French), Mega Image (Romanian, bought by Delhaize: Belgian), DM (German), Cora (French), Auchan (French), Profi (Romanian, bought by Delhaize: Belgian), Selgros (Swiss), Penny (bought by REWE: German), etc.

I moved abroad somewhere close to both France and Germany. At a company I worked for, I had both French and German coworkers.

At some point the Germans were talking about Kaufland and I started chatting with them about it. Some French people mentioned Auchan and I replied to that too. After a few more replies about German and French supermarket chains, one of them said: how do you know so much about both French and German supermarket chains?

And I told them:

We're right next to Germany and German supermarkets stop at the border. There is no Aldi in France. Most French people in the neighboring French towns haven't even been in an Aldi.

We're also next to France and French supermarkets stop at the border. There is no Carrefour in Germany. Most German people in the neighboring German towns haven't even been in a Carrefour.

In Romania your big companies bought everything local (or displaced it), there are hardly any locally owned stores so I guess the upside is that I know all your supermarket chains.

* * *

Repeat this for banking, IT, whatever. Europe is super economically segregated even with the EU operating. Each country has all sort of hidden protections for its local businesses. I can't really tell you what they are exactly, but in practice you can feel them. Each country has its own version of X, Y, Z businesses. Small versions of everything, instead of few really big and competitive businesses at a global level.

This even impacts US companies. You can't get a European Netflix subscription. You fly from Romania to France and when you land and connect your tablet to the internet, your Romanian Netflix account switches over to France and they delete Mad Men from your downloaded episodes because Netflix France hasn't licensed Mad Men (old example).

For the last time EU!= Europe, there are plenty more countries outside Brussels overach ffs

What is amazing is that this goes so much against the concept of the EU. The EU was founded on the principles of four freedoms, Free movement of goods, Free movement of persons, Freedom to provide services, and Free movement of capital.

The EU even have a SME Test to maker sure small business are not overburdened by regulations.

Also there are thousands of lobbyists fighting for small businesses. Yes, this law will probably eventually be thrown out for small businesses but after how many years is a big question, and how many small businesses have lost there businesses.

And the law was devised by Ripa di Meana, who had been a member of the Italian Communist Party and the green party.

So, the complain is that there is no harmonization and you want more centralized harmonization, basically?

My experience as a software engineer in EU was horrible. I wish I could say it was something out of a horror movie, but it would be too frustrating to watch.

I joined a major cryptocurrency project, saw its market cap briefly increase to $4 billion. I worked on it like crazy for 2 years whilst, unbeknownst to me, the founders began to sabotage their own project and ensure that it would slip out of the CMC rankings; I believe this was done to lower their public profile (and reduce scrutiny). But it all happened under the watchful, approving eyes of EU regulators. Also, the founders of that project defamed me and my team with outright lies to sabotage my spin-off project when we worked to improve the tech independently. I also witnessed other crypto projects which I knew to be scams receive funding from the EU commission, then the same founders raised money again after running the previous project into the ground with nothing to show.

Now I'm back in my home country, literally working for a bank, the antithesis of crypto, even though I find it immoral.

It's a human fallacy to think that the one who opposes evil is good. Usually it's just two different evils.

> A good idea, a terrible implementation

Story of European regulations. At some point you have to concede that they are incompetent and unaccountable. What do they care if they depress economic integration and growth in Europe? No one will ever be blamed for diffuse bureaucratic costs that drag down the whole Eurozone.

I even resent people giving them credit for "well, the idea was laudable..". No. Again and again they introduce make-the-world-a-better-place regulations, and whoever opposes these or asks about tradeoffs or whether they are meaningfully useful must be a crazed libertarian or industry lobbyist who wants to poison the people.

I remember how smug Europeans were about the American PATRIOT act. Who could be so stupid to be fooled by such propagandist framing of laws? Well, here in the EU that happens frequently. The commission just has to wrap its degrowth policy in saving-the-world names and off we go. (See also the EU Supply Chain Act, i.e. Corporate Sustainability Due Diligence Directive, aka expensive paperwork for a good conscience)

This sort of BS - which is why the UK left the EU by the way, happens on EVERYTHING. By nature, the EU is an extra layer of bureaucracy which can only exist by: 1.hiring 2. producing regulations to justify its existence. I have quietly seen it dismantle anything that worked in European countries, all while being called a fascist or far-right extremist for doing so. Well, here is the result.

How much bullshit!

If you try to sell to China, Australia, UUSS and Colombia and Russia for example, you also need to comply with the regulations of each of those countries (and pay Tarifs in some).

To ease the collaboration between humans the European Union was created. But the European Union is not a country. Is the earth only collection of countries that agree to collaborate together to levels no other countries have in the world History.

It's success is so big, that people expects to act as an independent country, and complain when discovering Europe is indeed several countries. WTF!

Unfortunate choice of words, implies these people are being literally murdered...

It's funny, because what's actually, literally killing people is pollution...

Good post, bad title.

From the title alone, I'd expect a typical think-piece from someone (possibly outside the EU) about overregulation, "the solution is no regulation at all", etc. Instead, it's a solid critique of the recent packaging/packaging waste regulation debacle, from a constructive angle. The first section hits the nail on the head: "a good idea, a terrible implementation".

Unfortunately, this feels like a frequent refrain when it comes to the EU. And even more unfortunately, even just this ever-so-slightly-more-nuanced take seems to frequently be drowned out by the two extremes -- "all regulation is bad and we need pure unadulterated free market capitalism" or "all capitalism is bad and we need pure unadulterated regulation" -- which are by far the two loudest voices in the room.

The OP has some good suggestions about this particular regulation (which should definitely be considered! Fix things are broken; don't just throw the baby out with the bathwater!), but I'd personally be interested to see things that try to understand and treat the root cause instead of yet another symptomatic regulation. Maybe walking further down the path towards federalization? Iunno, but if I had a dime for every time I've thought "good idea, bad execution" as an EU resident... I'd have a lot of dimes.