As part of its simplification objective and alongside its Single Market Strategy, the European Commission published on 21 May the so-called “Omnibus IV”, a package of proposals for targeted amendments of several EU legislative texts. This package aims to contribute to the declared goal of delivering at least a 25% reduction in administrative burdens for companies – and at least 35% for SMEs – by the end of this mandate. The Omnibus IV contains several proposals relevant to the e-commerce sector, notably with regard to product legislation, sustainability and data protection.
Product legislation
The EU product acquis is scoped in the Omnibus IV package via the proposal for a Regulation and a proposal for a Directive as regards the digitalisation and alignment of common specifications. Both proposals bring targeted modifications to sectoral Union legal acts aligned with the so-called New Legislative Framework (NLF). In practice, such acts feature harmonised rules regarding the obligations of economic operators when placing a product on the market, making it available or putting it into service.
The proposals as regards the digitalisation and alignment of common specifications share the same policy objective (i.e., introducing digital-based product information requirements and reporting in Union harmonisation legislation, including via the Digital Product Passport when this is a mandatory requirement).
While the two draft acts feature comparable amendments content-wise, their scope differs. This is due to the variety of laws pertaining to Union harmonisation legislation (i.e., NLF-aligned), including both Directives and Regulations. As a consequence, the draft Regulation amends provisions on economic operators’ obligations embedded in Regulations pertaining the so-called Union harmonisation legislation (most notably Regulation (EU) 2024/1781, aka the ESPR, but also Regulation (EC) 765/2008, aka the NLF). On the other hand, the proposed Directive makes the same targeted changes, but to Directives part of Union harmonisation legislation.
The tweaks include mandating the digitalisation of the EU Declaration of Conformity (DoC), as well as of other product-related documentation (e.g., instructions, other reporting), except safety information for which a paper format remains mandatory. The proposals lay down an obligation for businesses to provide a ‘digital contact’ for economic operators to be reached by national authorities. Finally, the draft laws provide for common specifications to constitute an alternative to harmonised standards when these are unavailable.
However, these proposals leave aside or only partially tackle fundamental complementary aspects, such as the enforcement structure, the availability and readiness of Member States’ IT ecosystems for digital-based reporting (in cases where a Digital Product Passport does not apply), as well as second-hand and small batch products. The Commission opened feedback on the proposal here (Directive), and here (Regulation), with an indicative deadline of 1 August.
ESPR and due diligence obligations
The above-mentioned proposal for a Regulation as regards the digitalisation and alignment of common specifications includes targeted amendments to the Ecodesign for Sustainable Products Regulation (ESPR). More specifically, it introduces the obligation for economic operators to provide the disclosure of information on unsold consumer products via an electronic format.
The Omnibus IV package also includes a proposal to postpone battery due diligence requirements by two years: from August 2025 to August 2027. The purpose is to provide more time for companies to prepare, for the establishment of third-party verification bodies, and for the publication of guidelines in 2026.
Small mid-caps and data protection
The European Commission expressed the ambition to support the scalability of small and medium sized enterprises (SMEs) within its Single Market Strategy, by supporting their transition as small mid-caps (SMC) companies. To that end, the latter was accompanied by the so-called SMC package of Omnibus IV, which contains several proposals to extend certain mitigating measures available to SMEs, and ensure that their status is taken into account in the legislative process. The SMC package also includes a recommendation for a formal definition of the SMC status, i.e. enterprises which are not SMEs, “employ fewer than 750 persons and have an annual turnover not exceeding EUR 150 million or an annual balance sheet total not exceeding EUR 129 million”.
The SMC package includes a proposal of targeted amendments to record-keeping obligations under the General Data Protection Regulation (GDPR). In particular, the European Commission proposes that SMC companies be exempted from the obligation of record keeping of their activities involving personal data processing when these activities are not likely to result in a ‘high risk’ for the rights and freedoms of data subjects. Within its Q&A, the Commission argues that “in the process of the extensive consultations undertaken (when drafting the 2020 and 2024 reports on the application of the GDPR), representatives of SMEs have been raising the issue that the derogation from the record-keeping obligation under Article 30(5) of the GDPR is too narrow”. The Commission opened feedback on the SMC proposal here (Regulation) and here (Directive), with an indicative deadline of 1 August.
Next steps
The draft Regulations and Directive will follow the ordinary legislative procedure, with co-legislators soon starting to allocate the file to the responsible preparatory bodies in the next few weeks and months. Ecommerce Europe will actively follow the proposals and participate in the design of the new rules so as to ensure that the interest of the e-commerce sector are taken into account.