On September 30, 2026, the Japan Association of New Economy (JANE) signed a joint letter (hereinafter referred to as “the Letter”) regarding the European Product Act proposed by the European Commission.

【About the Letter】
The Letter was jointly submitted by a total of 17 business associations and organizations mainly based in Europe, addressed to Executive Vice-President Stéphane Séjourné (Prosperity and Industrial Strategy), Executive Vice-President Henna Virkkunen (Tech Sovereignty, Security and Democracy), Commissioner Valdis Dombrovskis (Economy and Productivity; Implementation and Simplification), and Commissioner Michael McGrath (Democracy, Justice and the Rule of Law; Consumer Protection) of the European Commission.

The signatory organizations are as follows:
・Japan Association of New Economy
・Adigital
・Alliance Française des Places de Marché
・Chamber of Progress
・Classifieds Marketplaces Europe
・Computer & Communications Industry Association (CCIA)
・Digital Business Ireland
・European Refurbishment Association (EUREFAS)
・European Tech Alliance (EUTA)
・France Digitale
・Movimiento Re-Úsalo
・NLTech
・Portuguese Startup Association
・Startup Disrupt
・techUK
・Thuiswinkel.org
・Unicorns Lithuania

In its 2026 Work Programme, the European Commission indicated its plan to propose a review of the “New Legislative Framework”—the common framework for EU product regulation—and the Market Surveillance Regulation as the “European Product Act,” with the legislative proposal expected to be published shortly. Ahead of the publication of the proposal, this Letter expresses concerns regarding the impact that the Act may have on the business environment in the EU single market, particularly on online and cross-border trade.

【Main Contents of the Letter】
The Letter points out three main risks in the current direction of the European Product Act in light of the European Commission’s pledge on “simplification”:

■ Overlap with Existing Frameworks
The European Product Act risks layering new requirements on top of recent legislation, such as the Digital Services Act (DSA), General Product Safety Regulation (GPSR), Ecodesign Regulation, Packaging and Packaging Waste Regulation, Unfair Commercial Practices Directive, Product Liability Directive, and the reform of the Union Customs Code (UCC). Many of these measures are not yet fully implemented, making it impossible to evaluate their actual effects. Rather than adding regulatory layers, the focus should be on driving smarter enforcement through structured cooperation among national and EU authorities, domestically and cross-border.

■ Legal Uncertainty
In addition to overlapping obligations and undefined duties, there is a risk of unpredictable shifts in supply chain responsibilities that do not align with the actual roles of the actors involved. This applies across manufacturers, carriers, retailers, and marketplaces, creating new burdens that hinder market entry, growth, and competitiveness for European companies, startups, and SMEs.

■ Repetition of Regulatory Failures
In the case of the Packaging Regulation, rules with well-intended objectives but misaligned implementation sequences severely impacted cross-border trade within the EU, causing many small businesses to stop selling to other Member States. The European Product Act risks causing the same scenario for all products sold online.

Furthermore, the Letter calls for making the legislation one that simplifies doing business in Europe without lowering EU standards, checking the Act against the Commission’s own simplification commitments, and building upon existing rules rather than stacking new obligations. It also requests establishing a forum for dialogue to reflect these principles in the legislative proposal.

While sharing the goal of removing unsafe and non-compliant products from the market, JANE will continue to collaborate with relevant European organizations to ensure a fair operating environment for businesses, including Japanese companies, in the European market.

※ For the full text of the Letter, please see here.