Batteries and electronics: EU tackles EPR free-riding by online marketers

EU Member States are calling for action against “free-riding” in e-commerce, where online sellers bypass their extended producer responsibility (EPR) obligations.

At the December meeting of the Environment Council, several Member States voiced concerns over third-country suppliers who sell products like batteries, electronics and packaging in the EU without contributing to waste management or meeting legal requirements.

Countries like the Czech Republic reported losing tens of millions of euros annually in EPR contributions, while a letter by the Czech Republic, Denmark, France, and Slovakia estimated overall losses in customs duties to be in the hundreds of millions. These losses undermine waste management funding and give non-compliant sellers an unfair advantage.

To level the playing field, these Member States are urging the European Commission to address the issue.

Existing laws, such as the Batteries Regulation and Digital Services Act (DSA), already demand registration and verification for online sellers. However, enforcement remains difficult, particularly for small shipments from outside the EU.

Czech Environment Minister Petr Hladík noted that more than half a million producers alone are registered on one Chinese platform.

Austria’s Minister Leonore Gewessler also called for targeting very large online platforms (VLOPs), calling free-riding “a matter of survival” for EU businesses.

Germany also stressed the importance of consistent enforcement to ensure fair competition within the EU’s internal market.

EU Environment Commissioner Jessika Roswall referred to the DSA’s requirement for third-country companies to establish a branch or legal representative in the EU, and is committed to harmonising registration and improving collaboration with national authorities and EPR organisations. However, she also highlighted the need for a “structured” approach, balancing enforcement with practicality.

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