EU packaging regulations burden small retailers

The implementation of the new EU Packaging and Packaging Waste Regulation (PPWR) has sparked significant concern among small and medium-sized enterprises (SMEs) across Europe. Business associations, including the Federal Association of Online Retail (BVOH) and the German Retail Association (HDE), report high levels of legal uncertainty and administrative burden.

Small retailers, particularly those operating across borders, face complex requirements such as appointing Extended Producer Responsibility (EPR) representatives in every individual EU market. This creates high fixed costs that large corporations like Amazon can absorb, but which threaten the economic stability of smaller merchants. In Austria, some retailers have already suspended shipping to other EU countries to avoid potential sanctions and excessive bureaucracy.

Critics, including the Consumer Choice Center, argue that the regulation may lead to reduced market diversity, less competition, and higher prices for consumers. While the EU Commission has proposed a suspension for EU companies, political agreement remains elusive.