The European Union’s recently implemented Packaging and Packaging Waste Regulation, which took effect in August, has sparked growing concern among businesses across the bloc, particularly smaller enterprises. The regulation introduces stringent new rules aimed at reducing packaging waste by 5 percent by 2030, including bans on single-use hotel shampoos and individual ketchup packets starting that year.

Under the new framework, manufacturers are held responsible for the entire lifecycle of their products’ packaging. This responsibility extends to appointing a compliance representative in each of the 27 EU member states where their products are sold. Additionally, companies must register in every country and manage paperwork in multiple languages, significantly increasing administrative burdens.

While large corporations such as McDonald’s, Coca-Cola, and Amazon—whose executive chairman Jeff Bezos owns the source publication—are in some measure inconvenienced, the impact on small businesses is more severe. Many smaller firms report difficulty maintaining cross-border trade within the EU, with some opting to halt shipping to other member states altogether. The complexity of compliance has even disrupted environmentally conscious operations. For example, a German manufacturer ceased reusing cardboard boxes and switched to disposal due to challenges proving the packaging’s provenance.

The regulation coincides with other new trade costs, including customs fees introduced in July, which have affected sectors such as indie music. Sellers on platforms like Bandcamp have sought to halt shipments to the EU amid a reported 7 percent decline in music imports.

In response to mounting criticism, the European Parliament is slated to debate exemptions for small businesses. Meanwhile, the European Commission has advised national authorities to issue reprimands rather than harsher penalties for non-compliance. However, officials declined calls to delay the requirement for local compliance representatives, citing concerns that postponements could undermine the regulation’s effectiveness.

This packaging directive is part of a broader trend of comprehensive EU regulations that have faced pushback from both businesses and consumers. Previous measures, such as the Digital Markets Act, have prompted changes in services from major tech companies, including Google’s search and Apple’s artificial intelligence assistant Siri, reportedly delaying feature rollouts in Europe.

The EU continues to position itself as a leading regulatory authority with ambitions to influence global standards, though some critics argue that its approach risks stifling innovation and economic growth. French Europe minister Benjamin Haddad recently described fines levied on technology companies for alleged anti-competitive behavior as “a new revenue stream,” highlighting ongoing tensions over the bloc’s regulatory priorities and their broader economic implications.