How Europe is killing makers and micro-entrepreneurs
962 points - today at 1:05 PM
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None of this applies to companies that are micro-enterprises or use generic rather than branded packaging. There's a helpful diagram on page 13. The author of this article seems to have imagined a worst-case scenario based on either a misunderstanding or misrepresentation of the EU rules; the discussion here seems to have a lot of people who are in a big rush to demonize their perceived political opponents on ideological grounds.
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.
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.
They smash you very quickly. They do not care if they ruin you via prosecurion or you have to shut down. The tax agency is extremely agressive. The laws favor the agents to extents that are illegal and weven criminal (check the bonus of inspectors).
Check Robert Amsterdam work on this, something we all spanish know for a long time.
So if you want to make a product, there should be readily available, easy to read and follow, guides to make your product compliant. For products with large sales volumes or higher risk, the procedures of course should be more thorough, allowing some more complexity. I think even free consults offered by governments could be a great idea, much better to have consultants before violating a law, than waste money with a lot of inspectors. Also stimulating people to solve problems (many times using technology) is another benefit.
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.
On the other hand I estimate that between 50% and 200% of the taxes collected like this are wasted and not applied to their ultimate goals. The average collected amount per submission is so small that you cannot pay the bureaucrats managing the complex submissions from these sums.
An entrepreneur told me that they were being audited regarding the battery regulation. Two consultants came over from EY and audited all submissions in depth. They found out that the business overpaid by €10. The entrepreneur of course didn't mind and told them to keep the €10. The EY consultants told the entrepreneur to resubmit, otherwise the business would be fined. I think the government spent more on that audit by EY than the business will ever bring in on fees.
On top of this we have the regulations like Intrastat and in the future near-real-time submission of digital invoices to our tax authorities.
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.
- make packaging
- buy branded packaging and are not micro-entreprises
So if you are not using branded packaging, and if you are using branded packaging but you are a micro entreprise: The company manufacturing your packaging is the one responsible for this regulation
https://op.europa.eu/en/publication-detail/-/publication/ad1...
≤ £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.
""" For a one-person workshop, the result has been pretty brutal.
[...]
The numbers simply do not work for a micro-business like mine. Even in France and Germany, I send only around 1 to 2 kg of cardboard per year. In some other EU countries, I may send less than 100 g in an entire year. Paying annual compliance costs for one or two parcels makes no economic sense.
[...]
I have therefore decided to maintain EU shipping only to: FRANCE GERMANY """
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.
Germany was just a small market for us so we stopped shipping there.
I assume it's better and more clear these days and this probably makes it kinda easier in the long run. However it's a perfect example on how such things don't work if not done properly.
it is not sensible at all because businesses and individuals who dispose of that packaging already pay for the privilege.
It swings to one side, overreaching and overcomplicating things, and then back to the other side where restrictions are loosened or removed.
Anybody remembers the EU platform for dispute resolution? It's gone after 10 years because nobody used it.
PPWR in 10 years will probably be something like: Sign up for a recycling system in your country and pay for the packaging you've brought into the market. Also have icons on the packaging so people know how to recycle them. (Except in France, they'll surely require some crazy stuff as always.)
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.
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.
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.
-suicidal for own energy industry and economy via green deal without real impact for the world (see EU vs World/ China CO2 emisions chart)
-demographically/socially suicidal via open borders and stupidly generous social benefits for immigrants instead of supporting own families
-going back in time via overregulation of every aspect of our lives
-becoming police state/s via overcontrol
-hypocritical via outsourcing industries and making carbon footprint in other parts of the world
-internally weak via not protecting european values over immigrants "rights" and terror mongering (p.e. Xmas markets canceled on many places)
-supresing democracy via online censorship (DSA)
-juicing own people via over-taxation (exit taxes and unrealized gains taxes)
-being stowaway in terms of own external security (majority of states didn't fulfill NATO requirements in terms of GDP's percentage spent on military...well this actually is one thing that improves over the years, but Europe needed a kick from east and west to becoming adult here after years of underspending)
All in all, EU controlling Europe is committing civilizational suicide, living off past merits which results/capacity are running low while morally lecturing the rest. At the same time also destroying the very foundations that made Europe prosperous. History will likely look back at us as we/Europe voluntarily chose decline.
ps. the fact that I had to check if any claim made is not illegal, shows how far with censorship we already are. Freedom of speech cant be regulated without being lost.
https://www.verpact.nl/nl/nieuw-bij-verpakkings-epr-zo-regel...
It opens a very clear market opportunity for LECTRONZ themselves. Stop bitching and start doing the shipping and selling, you probably have the volume all the micro entrepreneurs will ship to you, comply with a single jurisdiction and you take on the task of complying with all the other ones.
The EU just printed you a licence to be a middleman, the words you are looking for are thank you.
So many entrepreneurs (who can because software businesses) are leaving EU
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...
Having operated in multiple geographies, US is really business friendly.
This would even apply when selling a few electronic knik knaks on ebay?
But as with anything here in Europe, check your laws.
Unfortunately, because all of us have postponed thinking about solving the problem, now we have a problem and braking is safer than not breaking at all.
In my country we do have advanced collecting systems but it all falls apart when different materials can be prioritised. There were an interesting proposal of having the companies to buy back the recyclable rubbish but that was scraped.
I was up to this. Because they would need to emit in the docs the amount of money the package cost and how much they would pay back, it was possible to track the sources from a fiscal eyes.
I think it was scraped because people already thought on ways of breaking it, instead of giving better alternatives.
Unless you are a medium to large-sized company, it is very difficult to remain fully compliant with the regulations in most nations now - across fields, from packaging, to agriculture, to food, aviation..
Unfortunately the EU does not at all understand how the internet works, maybe even how the global economy works today. Their goals are very reasonable and I fully support them, but the legislation around it (DMA, AI Act, GDPR, this new packaging stuff, don’t get me started with whatever everyone calls the cookie law) is just out of touch with how the modern world works. Again, I don’t think this is out of bad intention (not even to give an advantage to EU companies, but that is up to discussion) but mostly just out of a complete lack of understanding of what would really benefit the common EU citizen. The just seem to listen to activist groups and lobbyists aiming for regulatory capture and when trying to find a compromise in between they chose the worst of both worlds.
The extent to which China can appear to do nothing while the west kills itself is just unbelievable. How could you possibly respect people that can't get out of their own way so repeatedly?
So if some poorly discarded packaging is found in a forest by a government official, they can document it. At the end of the year, the companies involved in the making of the improperly discarded products would be fined some amount proportional to the number of recorded infringements and magnitude of infringements (e.g. total weight) to cover clean up costs pertaining to that particular source of waste.
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.
Perhaps I'm misunderstanding something?
When I get packages from Europe it's always is recyclable cardboard while from China it's always wrapped in plastic.
When I get packages from Europe or the USA it's always branded so the company responsible is always clearly shown, while from China it's usually brandless.
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.
Maybe the corporations who pushed the laws?
I have no info here, just thinking "what would I do if I was a wealthy corporation?" Dig a deeper moat!
So those who remain are statistically too old or non-ambitious to think regulatory friction applies to them, and they are right.
I was expecting that they would build the "passport" on top of existing design standards but that doesn't seem to be the case, the recent webinar on it doesn't go into much detail though.
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.
The costs in this article are understated for products like ours. This is not just for packaging -- they have separate compliance schemes for electronics (WEEE). If selling products with batteries, you must comply with separate battery regulations. If you pass a certain threshold or contain specific chemicals within your product, you must also comply with the REACH regulation. They work almost exactly the same the article describes, but often with higher costs.
Additionally, you must have CE certification for your hardware product. There is no threshold. This means going to a lab and testing RF capabilities, and for wireless / Bluetooth devices it can cost $1,500-$8,000. You can self-certify but it is risky.
We pay 800-2,000 EUR per country annually for the authorized representative (AR) and producer responsibility organization (PRO) fees. The AR's task is to hold some documents and provide them to the government when requested -- but that's it. We can do this for free. There's no reason the costs should be this high -- and I see minimal reason why they should exist in the first place. But we must comply.
It is important to understand which regulations and which fees to pay for the product. Therefore it is important to use something like PRONEXA -- a "One-Stop-Shop for simple compliance management".
With them, we paid ~800-1,000 EUR per country as a one-off registration fee. Then we pay 975 EUR annually per country to keep compliance. Note that these costs are ONLY to PRONEXA, not to each AR or PRO. They are effectively the middleman between us and the ARs / PROs.
The fee stability is quite poor, too. We paid the 2025 annual fees roughly a month before year-end and were charged another full annual fee in February 2026. In November 2025, we paid ~500 SEK for Sweden, and in Feb 2026, we were invoiced ~15,000 SEK for that same line.
With all of this burden we only pay the countries ~0.5-50 EUR annually for the actual environmental fees. This only makes sense for the government if that number jumps up to the thousands.
I think this contributes to lack of innovation in Europe. Small startups can't ship there, and you are limited to large companies overseas. The fix is dead simple -- just introduce a threshold, or charge a recycling fee upfront with each parcel coming in, depending on the HS code. What they did with IOSS is great. You register with one country, and all parcels under 150 EUR can be sent to all of Europe while being VAT compliant. They could implement the same thing for WEEE, battery regulations, packaging, and REACH. Register with one country and cover the rest.
We are barely break-even on some countries, and others we are totally underwater. We decided to do it as a future scaling opportunity, but this first year is quite tough. We are debating if we should continue selling to Europe at this stage.
These approaches will waste billions upon billions of Euros for no good reason. Having different VAT rates per-country already leads to overcomplication in so many places.
Ain't it the case everywhere?
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).
The PPWR is causing a lot of buzz, but they are missing the main point for a market place such as lectronz. PPWR is only for packaging and shipping material.
There's something similar called WEEE* for electronics. It's when you need to pay a fee at the end of the product life cycle. This is very similar to PPWR, you need to register in each member state to be able to sell electronics. The solution is also a one stop shop. But Lectronz fail to also mention this. I would argue that this is an even bigger issue than PPWR since it's already in place. Even if the PPWR is solved it's still nearly impossible to sell electronics to other EU member states.
Someone has been sleeping when these regulations were being discussed...
[*] https://environment.ec.europa.eu/topics/waste-and-recycling/...
They need proportionality and size/qty exemptions
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.
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)
Idea is terrible, implementation is WAI.
* completly serious, lets get it over with.
AFAIK this exists SOMEWHERE in the PPWR regulation but it only applies for EU small businesses that are buying packaging from another business in the same country. If you're outside the EU you are expected to do 100% of the bureaucracy regardless of size.
My gut tells me that EU PPWR compliance will wind up having a cheap turnkey solution for small businesses eventually, but the way this regulation is written today seems to specifically foresee and preclude turnkey compliance.
Wouldn't it be better to put the burden on packaging manufacturers?
That said, the EU and West in general through corruption like to pass legislation that ensures only big corporations can afford to comply with.
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.
......... Yet most of the talent is here
Does anyone actually bothers to read the actual regulation these days?
Yes it start applying starting August 12, 2026, but let's review the bloody requirements AFTER READING THE REGULATION, shall we?
Let's see what it says about recycling: - All packaging must be designed for recycling by 2030. - Plastic packaging must include mandatory minimum recycled plastic content targets for 2030 and 2040. - Per capita packaging waste must drop by 5% by 2030, 10% by 2035, and 15% by 2040 (compared to 2018 levels).
All these are sensible and the darn paper gives companies time to get with the program. It says so in the regulation black on white! For all the makers, small businesses and so on: You don't make your own packaging, you buy your bags and boxes from a dedicated supplier or get them from the delivery companies you use. Buy them from someone who makes them or use a delivery company that provides packaging according to the new rules. You have until 2030!
I run a small business and It took me about 6 months to get into compliance.
- Dangerous chemicals like cancer-causing PFAS in food-contact packaging are strictly restricted. Duh! Do we really need to complain about this? Seriously?
- Packaging must be as light and small as possible, eliminating empty space and useless layers. This is the only thing that seems ambiguous, some things are fragile, some are not, but maybe companies should be more reasonable with package sizes. If your packaging supplies has only one package size, find someone else. A 5 cm trinket doesn't need a 5mx5m box. Yes I've used the metric system, get over it!
- Standardised labels and QR codes for material sorting and disposal take full effect by August 2028 This is meant to make sorting and recycling easier across the whole market and you have 2 years to get into compliance! In my case, all delivery companies in my area already solved this and I get the QR codes already printed on the labels.
Most complains I've read in these comments are weird, missing the point and just posted to say the same thing: EU bad, EU bad, America good! America good! They're the same complains I read In any thread around here when it comes to EU regulations. Maybe someone need to change their openclaw prompts from time to time!
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!
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.