How Europe is killing makers and micro-entrepreneurs

(lectronz.com)

300 points | by l-one-lone 2 hours ago ago

164 comments

  • yardie an hour ago

    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.

    • greenraven 31 minutes ago

      > It's completely missed that small entrepreneurs may also want to take part

      This is by design. It’s the same all over the world. The wealthy are not going to just let you compete

      • argentinian 9 minutes ago

        Laws are voted by politicians. Do you mean that most EU politicians are puppets of EU corporations?

        • monegator a few seconds ago

          It's usually US corpos that are lobbying all over the EU, it's unlikely that the EU automakers would have lobbied for their destruction

        • yturijea 2 minutes ago

          That might be one reason they refuse to be open about their financial supports in their various organizations yes. it is very well known unfortunately..

      • bpodgursky 18 minutes ago

        The US is wealthier, has more billionaires and has fewer of these barriers for small entrepreneurs. So no, this is not the monocausal explanation that applies equally everywhere.

        (YES, the US has regulatory capture, YES the wealthy attempt to use it, YES we should try to eliminate it here too, but it remains true that it is easier to run a small business in the US, while having more billionaires. There are other explanations to the differential here).

        • 21asdffdsa12 2 minutes ago

          Agreed, europe has a culture of "stability" first. The fear of disruption and chaos is larger after two WW and it outsourced the risks of disruption to the US. Basically, use the us as a test-mouse for new ideas and innovations, then when proven safe introduce them and ride those coat-tails to infinity.

    • Xelbair 29 minutes ago

      >One of the biggest problems that I have in the EU is that it's almost federated

      I would argue it's even worse, because with properly designed federated system you get checks and balances to some extent.

      There are parts of EU that have almost zero oversight.

      • ajmurmann 16 minutes ago

        Can you elaborate more? When you say "checks and balances" do you mean explicit legal mechanisms or implicit mechanisms like Tiebout-style foot voting? For the latter areas with "almost zero oversight" seem advantages. Also, can you give an example of these low-oversight places and how it manifests? I'm thankful even for some pointers in what to search for.

      • dgellow 15 minutes ago

        Yeah, this in between state is really frustrating. I hope we will see a push towards more federalization, but that’s unlikely

    • Helmut10001 37 minutes ago

      Living in Europe, I find that with LLMs, it is possible to navigate the federal & law jungle. However, LLMs don't protect you from institutional envy or the resistance of people trying to block progress simply because it is perceived as 'too modern' or disruptive. I find this the hardest challenge. And I have the feeling during times of general decline, like these, it gets worse.

      • barrenko 23 minutes ago

        And it's like there's a uno card that's "increase taxes for freelancers". And they sure like to use it.

    • chermi 11 minutes ago

      I think this is a big factor. While I would prefer a more federated US, the US as is is a great market to start in. It's 350M fairly wealthy people under mostly the same tech restrictions. That's a great place to grow.

      It's important to remember that even without the fact that big companies basically write the regulations, regulations naturally tend to being effectively regressive wrt company stage/size. Every new one is a hurdle that a bigger company has more resources to overcome.

    • silon42 40 minutes ago

      Even medium-sized corporations are not willing to send products across borders to consumers (say, outside Germany), further destroying the single market.

    • n4r9 10 minutes ago

      > It's completely missed that small entrepreneurs may also want to take part

      There's truth to this but it's an overstatement as it stands. For example, GDPR rules are less strict for small companies.

    • troupo 33 minutes ago

      Because if the EU tried to force countries into single compliance, there would no end of "EU is trampling national interests" and similar screaming.

      It's an unwinnable situation. Again, EU-level politics keep assuming everyone (corporations and states) are adults. Unfortunately, everyone are just a bunch of screaming, scheming petulant children.

      • 0x_rs 17 minutes ago

        >Again, EU-level politics keep assuming everyone (corporations and states) are adults. Unfortunately, everyone are just a bunch of screaming, scheming petulant children.

        One in four MEPs are involved in scandals [0] ranging from harassment to organized crime and corruption. The European Parliament also remains a free out-of-jail card through abuse of parliamentary immunity, and they do abuse it [1]. EU politics is a circus.

        0. https://archive.is/neTOG

        1. https://www.politico.eu/article/eu-parliament-accused-overre...

        • p_l 14 minutes ago

          MEPs in many countries do not actually have immunity.

          However, the bigger issue is that european parliament is treated in many countries as essentially dumping ground between national elections.

      • philipallstar 29 minutes ago

        > there would no end of "EU is trampling national interests" and similar screaming

        To just call this "screaming" is to completely dismiss a real and huge problem. The EU is the idea that countries should fuse into economic areas, but the countries are also individual still. Of course there's a lot of friction.

        For example, because Greece was in the Euro, they couldn't inflate their currency to compensate for the fact that they gradually outsourced more and more work to Germany, until they had nothing left and hit a financial crisis because their government couldn't borrow more money. That's not mindless screaming.

        • troupo 25 minutes ago

          So you've described Greece as a bunch of scheming petulant children.

          "Our plan to be inaccountable didn't work, so we'll try a different scheme instead".

          And yes, it's a huge problem. That's why I called the situation unwinnable.

          • graemep 19 minutes ago

            They could neither fix the problem with the policy tools a country with its own currency would have, nor did they have the automatic support from a central budget a region or state of a country would have.

      • Xelbair 28 minutes ago

        Including EC, and MEP themselves.

    • alephnerd 38 minutes ago

      The bigger issue in OP's case is they are dependent on de minimis.

      The de minimis crackdown [0] and EPR [1] are both being rolled out because Chinese conglomerates like PDD and SHEIN took undue advantage of that while ignoring European regulators on issues such as dark patterns [2], breaching the Digital Services Act [3], and gacha/engagement mechanisms [4].

      Seems European HNers are fine with European regulations until it hurts their niche interests.

      [0] - https://www.ft.com/content/102e18d7-d06b-4405-a347-97bb3c373...

      [1] - https://www.vereev.com/news/europe-faces-trade-conflict-is-e...

      [2] - https://www.ft.com/content/ef72f186-2a02-4c51-927d-2c01ddece...

      [3] - https://www.reuters.com/sustainability/eu-says-temu-breach-r...

      [4] - https://www.reuters.com/sustainability/eu-probes-shein-over-...

      • rescbr 17 minutes ago

        The issue is that those marketplaces got too mainstream, and the average consumer is too stupid.

        10-15 years ago if you were importing stuff from China you'd know that the trade off for cheaper prices is that you'd lose your consumer laws protection and you'd be on your own. If you wanted those, then you'd go to your local retailer and pay extra.

  • srg0 a few seconds ago

    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.

  • the__alchemist an hour ago

    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.

    • stephen_g 36 minutes ago

      FCC allows suppliers to self-declare conformance with EMI/EMC rules. You’re obviously taking a risk selling stuff if you haven’t had it properly tested so don’t really know if it passes but it’s unlikely to really be an issue for a small maker selling low quantities, especially if any intentional radiators (Bluetooth, WiFi etc.) are already-certified modules.

      Your device tends to need to be causing problems, that the FCC then go and track down, and then come back to you. That is (hopefully, depending on the kind of device) extremely unlikely.

      As for Ali stuff, probably lots of it is not tested but still comes with a FCC label - but if it is shipped from overseas, who is going to take responsibility for it? Nobody… So there is nothing they can do except fine the person who bought it if it’s really causing problems (and usually I doubt they’d even do that if the user wasn’t intentionally doing something they shouldn’t have been, they are just told to stop and maybe the device would be seized/ destroyed)

  • Robin_f an hour ago

    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.

    • dgellow 27 minutes ago

      Really sorry you’re experiencing this, that whole regulation rollout is a complete mess. The leadership should be sacked for such an incompetent regulation, it’s insane how much troubles they are creating for small businesses.

      Another small business owner reported their experience in this Reddit thread, looks really bad: https://www.reddit.com/r/europe/comments/1vrz88a/comment/p4i...

      I’m as pro-EU as one can get but that’s a mistake we should solve asap

    • catigula an hour ago

      Do you not cross the street given the risk of being hit by a bus?

      • sokoloff an hour ago

        Fortunately, buses are not invisible and you can look for a bus before crossing a street to gauge and control your risk of being struck by one.

        • Hizonner 19 minutes ago

          ... but you can still fail to notice one, and you can gauge and to some degree control your risk of being fined.

          In fact, if you sell 10 hobby prototype boards to other hobbyists, you probably have a higher risk of getting hit by a bus on the way to the post office than you do of being fined.

      • throw-the-towel 38 minutes ago

        Umm akchully, not crossing a highway to avoid being hit is a perfectly sane course of action.

        • fitsumbelay 29 minutes ago

          except he said "street" not "highway"

  • matt-p 26 minutes ago

    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.

    • mytailorisrich a few seconds ago

      The UK tends to be much more sensible than the EU and the main EU countries (France, Germany, Italy).

  • AndroTux 44 minutes ago

    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.

  • nottorp 18 minutes ago

    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.

  • lccerina 16 minutes ago

    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.

  • armcat 34 minutes ago

    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.

  • Jskewel 23 minutes ago

    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.

  • ionwake 34 minutes ago

    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.

    • ilamont 11 minutes ago

      > 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.

      You can still do such businesses, but the red tape and other requirements are enourmous: health department and construction applications, soil tests, inspections, manufacturing requirements, and so on. The additional costs and delays are passed on to customers.

      It's not just septic tanks, it's all areas of construction and one of the reasons why in many states (like New York and California) it's impossible to make low-cost housing anymore, or (like in Florida) new regulations governing old construction are leading to sky-high reserve requirements and condo fees.

      There's also the phenomenon of people just ignoring the laws or bypassing them. For your septic tank example, in Alabama or one of the other southern states states people with low cost prefab houses ("double wides") don't want to pay $10,000 to dig a trench for a septic tank, so they just run sewer hoses deep into the woods or ditches. https://www.epa.gov/septic/surface-discharge-raw-wastewater-...

    • latexr 17 minutes ago

      > Please look it up

      You’re the one making the claim, so please provide sources for your fantastical scenario. By your logic there should be no small coffee shops across the EU, yet this is verifiably and patently untrue.

      • ionwake 13 minutes ago

        You should do your own research and I don’t want to take up space on HN but I’m happy to take a look can you name what exactly you found hard to believe? It’s been known for decades small business can’t survive legal landscape as easily as large corps.

        If you are confused by the statement there are no small coffee shops - are you living in Europe? From first hand experience coffee shops survive less than a couple years on any high street , yet there is a Starbucks on every street corner and it’s a well known fact small coffee shops operate on almost non existent margins.

        • latexr a few seconds ago

          > You should do your own research

          Sure, but you should also understand that “look it up” is the escape words of every false claim. “The Earth is flat, look it up”; “Reptilians are controlling the world, do your own research”; “Bill Gates is injecting you with mind-control chips, google it”.

          You can “do your own research” and “confirm” anything. Which is why the person making the original claim should provide sources, so we can all discuss the same thing and not talk past each other. If your sources are flawed, it’s much easier to reach that conclusion if we’re all looking at the same thing.

          > I don’t want to take up space on HN

          Don’t worry, a few characters won’t make a difference.

          > I’m happy to take a look

          Thank you.

          > can you name what exactly you found hard to believe?

          Certainly. It’s paragraphs 5–8 in your original post. The claim that there are random troublemakers regularly employing free national non-profit corporations in the EU to extort and bankrupt local coffee shops by lying about having been ejected for racial reasons.

  • IsTom 10 minutes ago

    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?

    • alephnerd 6 minutes ago

      > Did everyone actually read the law or is this a game of telephone

      It's HN - everyone did the latter.

    • l-one-lone 4 minutes ago

      The terminology is confusing. Under the PPWR, a “producer” is not necessarily someone who manufactures packaging. The regulation also covers businesses selling packaging or packaged products directly to end users in another Member State. So a maker shipping a board in an envelope can indeed be the packaging producer for EPR purposes.

  • blks 5 minutes ago

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

  • tdeck an hour ago

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

  • Mashimo an hour ago

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

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

  • leros an hour ago

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

    • brohee 33 minutes ago

      This has its own issues. Big bad actors can now split their activities between more smaller companies to avoid some regulation. I've seen it happening.

      • leros 26 minutes ago

        That's the tradeoff for allowing smaller companies flexibility to thrive without being swamped in regulations and fees.

      • lukasbm 18 minutes ago

        that's fair game though. Either way they waste money on administrative overhead, which seems to be the goal of this whole procedure

    • SV_BubbleTime 43 minutes ago

      Selective enforcement is a tyranny generator.

      How about the law doesn’t exist if it doesn’t actually make sense?

      • some_random 36 minutes ago

        Selective enforcement is just tyranny, but what I think they were getting at is a minimum size enshrined in law. I don't think it's a great idea, really highlights how arbitrary this all is and presents a risk of advantaging the worst actors more than real makers, but it's a valid way forward.

        • leros 22 minutes ago

          Laws like this are a good idea but its too burdensome for small companies so it cripples innovations and small businesses. Only applying it to larger companies let's it apply to only the companies who have the largest impact and also can afford compliance, while not stifling small businesses. Not perfect but I think it's a decent tradeoff.

    • dmix 38 minutes ago

      That would just add tons of extra paperwork and a much larger administrative system to vet all the sizes of companies. IRL they will probably not even be enforcing this widely (like GDPR) but the costs will still be imposed on any business wanting to sell in Europe.

  • zarzavat an hour ago

    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.

    • FinnLobsien 38 minutes ago

      The problem is that even this has a chilling effect on innovation:

      1.It will dissuade some people from starting in the first place because it's one more hurdle. Even if in practice people don't comply, the existence of that complexity will dissuade some people.

      2.Even if nobody is being prosecuted for mailing 10 anti-static bags, what is the number at which you do comply? And once you do, will you be held accountable for everything that came before?

    • caseysoftware 41 minutes ago

      That's a very American mindset. I've worked across both the US and EU at a variety of companies with customers, partners, etc and it's a clear pattern:

      - Americans are usually willing to skirt the rules and figure it out later. This comes with risk but is ideal when you're early stage, low stakes, and you couldn't follow the rules anyway.

      - Europeans absolutely want to do it by the book and will be shocked if you suggest otherwise. Being process oriented is great for high stakes industries where lives and safety are on the line but destroys startups, likely slowing or even killing innovation.

      There is no floor to the level of "petty" that can happen here: the UK - granted, not the EU - goes after individuals who don't pay their TV license and determine the who by triangulating unlicensed TVs via radio trucks and inspectors looking in your windows.

      • maeln 26 minutes ago

        I don't really have this experience. A lot of business I have worked with followed the "let's just do it and figure out the risk later" approach. In highly regulated environment it was different, but then looking for ways to squirt around the rules was the game. See for example the CumCum (don't blame me, it was called like that) tax-evasion scheme put in place by french banks.

      • kakoni 26 minutes ago

        Perhaps one explanation is personal bankruptcy? At least in Scandinavia/Finland this is an unknown concept. You mess up your business (Ireland has EPR fines upto 500ke) and end up paying company loans for the rest of your life.

        • fluoridation 15 minutes ago

          Do they not have LLCs?

          • kakoni 8 minutes ago

            Of course, but when getting bank loan(for the llc) to get started you have to give personal collateral.

      • Always42 11 minutes ago

        Do regular tv’s transmit?

      • ranger_danger 38 minutes ago

        I find this hard to discuss among others as it often results in heated discussions, but in my experience, Europeans have a completely different understanding of what is considered "rude" so much that I struggle to work with a vast majority of them.

        That's not to say that there aren't extremely nice people all other Europe... there are. But I'm still caught off guard when hearing them say some things nonchalantly that would get them fired in the US.

        • scns 28 minutes ago

          > But I'm still caught off guard when hearing them say some things nonchalantly that would get them fired in the US.

          I'm intruiged, can you give an example?

          • caseysoftware 6 minutes ago

            Not sure if it's a pattern but when I interviewed with an EU company recently, they explicitly asked if I was married and if I had kids. They explained it as they had a "European mindset towards weekends and holidays" and they expected me to NOT be online.

            I was fine with the mindset but never expected to get those questions in an interview, as it'd be illegal in the States.

        • dragochat 26 minutes ago

          wtf are u talking about? some examples would be in order...

    • lukan an hour ago

      Likely not, but would you want the extra risk and the stress involved, that maybe one day you will find a expensive letter in your box?

      • billyp-rva 43 minutes ago

        It depends on how expensive that letter is.

    • matt-p 36 minutes ago

      Maybe it's super convenient for you in the moment, but the aggregate effect is pretty bad. If everyone just ignores laws because they're too much hassle and they don't expect to get caught, enforcement becomes incredibly difficult. You end up with loads of laws that technically exist but are only selectively enforced, which is a pretty serious problem.

      • throw-the-towel a minute ago

        How would you then have backpressure against bad laws?

    • dmix 39 minutes ago

      Great way for larger companies to knock you their smaller competitors by hiring a firm to vet they follow the rules

    • anonzzzies 33 minutes ago

      Yeah, I always ignore them, first in my own country (NL) and after that in EU. Even if they fine (which they don't for small companies/persons), they will not spend money/efforts to cash the fine anyway, especially across borders. I had a few useless fines in the 35 years of my company, never will pay them.

    • bluGill an hour ago

      You risk that someone wants to make an example of you. You might run for mayor and your past is dig up and exaggerated

    • pelagicAustral an hour ago

      Don't hold your breath.

    • AndroTux an hour ago

      Sounds like a great opportunity for folks to sue you for exactly that. Same with the imprint requirement in Germany. There are people out there looking for small businesses without an imprint to extract some money from them.

      • 9dev 37 minutes ago

        As they should. As a customer, I want to be able to hold a business accountable, and the minimum requirement for that is being able to identify the legal person responsible for that business.

        • AndroTux 32 minutes ago

          Yes, I too want the smallest Twitch streamer to have to put their exact home address publicly on the internet so they have no protection from weirdos and stalkers. If a post box would suffice, sure, I'd be down. But that's explicitly not allowed.

          But regardless, kinda OT. I was just trying to make a point that ignoring a law isn't without consequences.

    • raverbashing an hour ago

      Yeah I'm betting on that as well

      In the end, it's mail being sent.

  • charlieyu1 20 minutes ago

    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.

    • runarberg 11 minutes ago

      I am from Europe and I think this complaint is misplaced. Europe is currently speeding towards neo-liberalism at lightspeed and shows no sign of slowing down. The beneficiaries are primarily the CEOs and big corporations. The workers are certainly not the ones benefiting from the status quo, especially if you look at the stripping down of consumer protection which is starting to look like completely absent in the continent. And on top of everything you have mass austerity, stripping away any social safety net.

      However I do not see favoring smaller entrepreneurs over the status quo as something which will improve matters at all. It feels saying our problem is that we have the wrong capitalists. We just need to swap out our old capitalists, get new ones in, and hand them the exploited wealth, and then everything will be good.

      What Europe needs is a focus on workers. Enough with capitalism already.

  • kakoni 33 minutes ago

    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.

  • roblh 36 minutes ago

    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.

    • dgellow 25 minutes ago

      Yes there are some middlemen , but that’s really shouldn’t be necessary. That becomes just a sort of racket business. The main problem isn’t what packages should be, it’s that businesses must get a license in every single EU member they want to send a package to. That’s just insane, and there is no unified portal. Some countries don’t even yet have a portal.

  • deliciousturkey 23 minutes ago

    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.

  • darthcloud 21 minutes ago

    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.

  • vibe_that_works 32 minutes ago

    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."

  • TrackerFF an hour ago

    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.

    • weberer 19 minutes ago

      >Don't sell stuff as a incorporated business. Only do that once you cross a certain level of revenue.

      Are you saying to sell as an individual? People don't do that because if you ever get sued, it puts your personal assets at risk.

    • KellyCriterion 33 minutes ago

      In most EU countries law, this one is also considered as "solid business", regardless if you are incorporated or not:

      If you are running on a level with focus one some revenue, if you are doing it somehow regularly and if you have at least some infrastructure to look like you are a corporate (billing system, customer care or similar), then you may fall under corp rules, even if you are not acting as an entity.

  • abc123abc123 14 minutes ago

    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.

  • cmiles8 15 minutes ago

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

  • jcfrei 18 minutes ago

    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.

  • 0x_rs 42 minutes ago

    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...

    • lucasRW 12 minutes ago

      And don't forget to fill in all the administrative paperwork on how your business addresses climate change; LGBTQIA+ issues; men/women parity; etc !

  • bluegatty 30 minutes ago

    Regulatory capture in this case.

    They need proportionality and size/qty exemptions

    • philipallstar 29 minutes ago

      Regulatory capture doesn't exist. Only corrupt and/or incompetent regulators.

      • dragochat 21 minutes ago

        all people are somewhat corrupt or incompentent.

        that's why it only makes sense so think in broader terms, and a broader level regulatory capture absolutely exists.

        the problem is that to solve regulatory capture in the EU parts of governments would have so go to war against corporations on the part of SMBs. but... governments in Europe de facto don't even recognize the right to exist of SMBs, basically _nothin_ of the large swath of government contracts fall to misc small businesses that would be perfectly capable to deliver on them at even 4x the quality standard corrupto-corpos do... probably there's some positive counteexamples in the weapons industry recently since we've realized we really do need quality weaponry at great value "by yesterday morning", but besides that... govs _HATE_ both SMBs and startups-from-unkowns (god forbit bootstrapped...).

  • jwildeboer 42 minutes ago

    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.

    • dankben 32 minutes ago

      You must be a fellow German. No where else in the world does the objection that bad legislation has been discussed (very negatively I might add, look up the results from consultation period you quoted) for 10 years have any merit on discussion whether that legislation fulfills its purpose.

      So what if businesses "had time to prepare"? Its not the governments / especially the EUs job to waste the time of small businesses.

    • thunspa 32 minutes ago

      Do you assume regular people spend time on EU portals reading legislation proposals?

    • baggy_trough 28 minutes ago

      Yes, we are surprised to find out how foolish and counterproductive some legislation can be.

    • ToucanLoucan 33 minutes ago

      It also surprises and bewilders me that businesses (usually tech or tech adjacent) apparently expect and have for some time expected the ability to do business internationally completely without friction. Which is less something I think is a good or bad idea, and far more just simply an unrealistic one. If you want to sell in a given set of countries, I would think it a given that you would have to deal with the regulations and business laws in each of those given countries. The fact that you want to sell hacker/DIY products to people in less developed markets is admirable, certainly, but it doesn't change that. It's an unsolved problem precisely because it's kind of a pain in the ass to do compliance work across a large number of them. It's why large companies have entire departments devoted to regulatory compliance.

      As far as I'm concerned the only way you could say this is "killing" any business is if the business in question has, as you said, spent the last decade just assuming they could sell things wherever with no oversight.

      • dankben 30 minutes ago

        What an interesting point of view considering the discussed post. One of the main pillars of the EU its is single-market policy, you would very well expect businesses to be built on the premise of frictionless trade within these borders. And im not sure which market exactly you're calling "less developed"?

      • dgellow 22 minutes ago

        The whole point of the EU single market is to remove that friction

  • forinti an hour ago

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

  • p0w3n3d an hour ago

    As usual, throwing babies out with the bath water

  • gryzzly 11 minutes ago

    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.

  • utopiah 41 minutes ago

    How is CrowdSupply, US based, managing?

  • TheAtomic an hour ago

    Seems like a problem Lectronz could solve for its makers.

    • forinti an hour ago

      Unfortunately, "Lectronz now generates roughly the equivalent of one modest salary."

  • sajithdilshan an hour ago

    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.

  • Sol- an hour ago

    > 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)

    • watwut an hour ago

      The article is asking for MORE regulation and MORE integration. As in, dear EU, please do not allow member states to make own rules about this, but make one from the central headquarters.

  • jongjong 5 minutes ago

    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. 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. Then the founders defamed me and my team with outright lies to sabotage my spin-off project when we worked to improve the tech independently.

    Now I'm back in my home country of Australia 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. In reality any entity with any kind of power is almost certainly evil; always has been and probably always will be. Power struggles are usually evil vs evil. You just have to decide what kind of evil you are.

    The new contender always presents themselves as the good guy but they probably aren't. If they were good, you would probably not have heard of them.

  • quincy_jones 14 minutes ago

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

  • uxhacker an hour ago

    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.

    • sajithdilshan an hour ago

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

      how ironical

      • cobbzilla 42 minutes ago

        It’s hard to overthrow actual free markets. Small business is too sympathetic.

        But if you pass enough well-meaning regulations and strangle all the small businesses with good intentions, it’s much easier to overthrow a crony-capitalist oligopoly of megacorps, which is exactly the end game.

        • sajithdilshan 36 minutes ago

          yes, and go back to communism 2.0. because that worked so well the last time it was tried.

    • raverbashing an hour ago

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

      Why am I not surprised. But to me the worse is the 400 something rubberstamps this crap got

  • watwut an hour ago

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

    • dgellow 19 minutes ago

      Yes, that’s exactly what we want. The single market should be finalized. And we should move towards having a European equivalent of Delaware corps, and unified systems.

    • oblio an hour ago

      Basically, yes. The EU needs a lot more power to force through an actual single market. Especially a single digital market. That's why the US is crushing EU tech companies. Licensing (especially content), patents, totally different tax systems, addressing all of the EU as a small company is basically impossible.

      • izacus 27 minutes ago

        Except that US also has pretty fragmented state law, doesn't it?

        • weberer 14 minutes ago

          Not anything like this. The closest thing is charging local sales tax.

  • oblio an hour ago

    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).

    • DanielHB 33 minutes ago

      Language, payroll-rules and tax-rules alone can be enough to prevent a business from expanding into a market. Even when there is no foul intent, just different set of rules.

      I am from Brazil and it is not unusual for companies to operate only within certain states because of this. Even though Brazil is a single country with a single language and mostly federal rules about things, there is still enough variance of laws from one state to another to cause problems.

      Then you hear about Canada which has tariffs between its own provinces, but not to the US. Meaning some products are cheaper across the US border than across a province border. Figuring out how much to pay in taxes alone can be a blocker...

      This is not an EU-only problem, any large single market will have friction in its internal divisions. It tends to be worse in the EU because the countries have a lot more sovereignty though (enforcement agencies tend to be local, not federal for example).

      • oblio 16 minutes ago

        > Then you hear about Canada which has tariffs between its own provinces, but not to the US.

        Canada doesn't have, and should not have, the level of ambitions the EU should have. We're talking about EU 450 million people (500+ million if the UK rejoins at some point) vs Canada 35 million.

        The EU should go toe to toe with the US and China. The EU is utterly dominated by US software companies and by Chinese green tech companies (batteries, solar panels, EVs).

    • vladvasiliu 11 minutes ago

      Don't know about Carrefour and Auchan in Germany, but there are plenty of Aldis and Lidls in France, at least in the Paris region.

    • throw-the-towel 29 minutes ago

      I feel for you, but the points you're making seem to be contradictory. You don't like that European companies bought out Romanian ones, yet at the same time you don't like that Europe has small versions of everything for each country instead of big mega-corps like Carrefour and Aldi? Or perhaps you're OK with mega-corps, and just want some of them to be Romanian?

      • oblio 22 minutes ago

        > I feel for you, but the points you're making seem to be contradictory.

        No, that is actually one of the points, I'm glad someone wanted it.

        I, too, want to have my cake and eat it, too. This is a contradiction that can't easily be resolved.

        I'd want Romanian sovereignty AND the convenience of big companies with lots of economic power. I guess, to your direct comment, yeah, I'd be happy enough with a few European "champions" out of hundreds being Romanian.

        Personally, I lean more towards EU federalism so this cognitive dissonance is probably 30-70 towards big companies, because I think otherwise the EU will be crushed by outsiders.

    • maattdd 21 minutes ago

      There are a lot of Aldi in France (also Lidl, also Action (Netherlands)...) Not sure of your point.

    • sajithdilshan an hour ago

      I think this is true for a lot of Balkan countries that joined EU. I was in Croatia recently and was super surprised to see Lidl and DM stores there. Even more surprised to see the prices of items in those stores were almost same as in Berlin

    • tietjens 42 minutes ago

      Very interesting! Also, I would trade Aldi for Carrefour in less than a second.

    • rjsw 32 minutes ago

      There are ALDI stores in France, I don't know which ALDI without looking it up. Carrefour has stores in Italy and Spain.

      • oblio 20 minutes ago

        > Carrefour has stores in Italy and Spain.

        And Auchan has stores in Spain (Alcampo).

        I'm not saying that the boundary is a 20km high wall of fire nothing can go through.

        I'm saying that:

        1. the direction is mostly big countries -> smaller countries, and very rarely big countries -> other big countries or even rarer, smaller countries -> big countries.

        2. 20+ years after the EU has started, the level of high level integration is still pitiful.

  • lucasRW 18 minutes ago

    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.

  • cientifico 42 minutes ago

    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!

    • Conan_Kudo 27 minutes ago

      It's not the first. It's not even the first in Europe: the first was the UK, Belgium and Switzerland came after. There are and have been others around the world throughout history too: the CSA, the first USA, the USSR, the UAE, and the Arab League (just to name a few).

      Most systems like the EU don't work well after a certain size. I don't know if we can say whether the EU has reached the point where it's unworkable yet.

      • lucasRW 10 minutes ago

        The thing with the EU is that, worryingly, the less it works, the bigger it becomes (new memberstates, soon, Albania...) and the more power it takes on. This continent is heading for a catastrophic outcome and one must be blind to not see it.

  • gerikson an hour ago

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

  • khalic an hour ago

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

    • mrweasel 30 minutes ago

      The idea isn't the issue, the implementation is. The EU did the same with VAT previously, where you'd have to register separate businesses in different countries, once you got large enough (which wasn't very large). Now there's a central system to keep track of what goes where and you can sell internally in the EU with no issues.

      Something similar needs to happen here, where business report and pay to a central EU system, that then transfers the funds to each country. The problem is that the EU is smart enough to see the environmental problem, but forgets to think about ramifications and doesn't provide the right tools.

      • khalic 18 minutes ago

        I was commenting on the title, the concept is sound yes, but doesn't call the initial idea into question, these measures are necessary to ensure a sustainable civilisation at this point, should be clear to every body really...

    • cm2012 30 minutes ago

      In Europe air pollution, while much higher than the United States, is at a hundred year low.

      • khalic 17 minutes ago

        slightly off topic wouldn't you say?

    • echelon an hour ago

      Is it literally killing the majority of Europeans? How many deaths comes from an Arduino box?

      Europe's smart people are going to have to move to another country to be entrepreneurs. That's going to kill Europe faster.

      • khalic an hour ago

        > Europe's smart people are going to have to move to another country to be entrepreneurs

        Watch the stats please, the contrary is happening right now, plenty of American talents coming to Europe.

        • imthatsteve 17 minutes ago

          Im in the states right now, ive been wanting to leave the US before the empire collapses but i definitely dont want to go to Europe. Even if the economy was functional i dont want to be run over or stabbed or have my future children stabbed, run over or raped by Muslims. So that rules out Europe except maybe turkey which sounds cool culturally but their economy is even worse than Europe. Honestpy id like to go build a cabin homestead in the wilderness where i dont have to deal with burro rats but there isnt any wilderness left. So idk maybe ill go buy an abandoned home in rural japan and live my best homesteading solarpunk life.

          • khalic 12 minutes ago

            jfc the level of delusion is astronomical here... stop watching Fox News buddy...

        • thunspa 27 minutes ago

          Please share said stats with us

        • throw-the-towel 27 minutes ago

          They're probably not coming to be entrepreneurs though.

  • nbadg 39 minutes ago

    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.

    • lucasRW 13 minutes ago

      Well, maybe if anything coming from the EU is "good idea, bad execution", the solution should be to get rid of this bureaucracy altogether then.