EU proposals to make online marketplaces liable for unsafe or illegal goods and collection of taxes

The question

How concerned should online marketplaces be about new EU rules on e-commerce imports?

The key takeaway

The Commission 2025/37 Communication (the Communication) reinforces the EU’s commitments to addressing the challenges posed by e-commerce in the context of compliance with consumer protection rules, suggesting the introduction of more stringent customs controls and shifting the responsibility for product compliance and tax collection to marketplaces.

The background

On 5 February 2025, the EU Commission published the Communication outlining a ‘‘Comprehensive EU toolbox for safe and sustainable e-commerce’’ aimed at reducing the influx of dangerous products entering the European market through e-commerce platforms.

In recent years, online marketplaces have experienced significant growth, with international players importing large volumes of parcels into the EU. The number of low-value items imported into the EU almost doubled in 2024 compared to the previous year. This is partly due to the current duty exemption for consignments below €150. This rapid increase in imported goods presents a considerable challenge for the enforcement of product safety and consumer protection regulations.

The Communication highlights three main concerns: safety and product compliance, sustainability and unfair competition. To address these issues, the Commission has proposed a customs reform that would require online platforms to provide data on the goods before they arrive in the EU and shift the responsibility for imports to marketplaces, which would be required to collect the relevant duties and VAT as well as ensure compliance.

The development

The key takeaways in the Communication are:

• the introduction of a new EU Customs Authority, operating alongside national customs authorities
• the use of digital tools such as a Digital Product Passport and AI tools for the detection of illegal goods and shared databases
• alignment of VAT and customs rules, establishing that online marketplaces become the importer and collect the relevant duty and VAT
• a shift on the responsibility imposed on marketplaces and vendors to ensure compliance with the EU requirements and rules
• the possibility of introducing a non-discriminatory handling fee on e-commerce items imported in the EU directly to consumers.

The Commission will assess the effect of the Communication within a year and evaluate whether further actions are required.

Why is this important?

The Communication marks the first step in the Commission’s efforts to address the challenges posed by e-commerce imports and should be read in conjunction with the new Product Liability Directive (EU 2024/2853) and the General Product Safety Regulation (EU 2023/988), which already expands the obligations on online marketplaces with regard to the provision of product information and identification (including warnings and safety information) as well as monitoring and cooperation with regulatory authorities.

With the increasing import of low-value items from countries with varying consumer protection standards to the UK, the Communication could influence the approach taken by regulators. Although the UK is no longer bound by EU rules post-Brexit, regulators in the UK are likely to closely monitor these developments.

Any practical tips?

The clear imposition of responsibility to online marketplace to ensure compliance with EU rules could represent a significant burden for online marketplaces like Amazon and AliExpress hosting independent sellers outside their control. Such measure may require marketplaces to implement more stringent procedures to ensure compliance and avoid liability, potentially increasing operational complexity and costs. To manage this, marketplaces could leverage technology such as AI-powered compliance tools and automated systems to monitor and verify product listings for adherence to EU regulations. These technologies may be able to assist with tracking product documentation, ensuring VAT and duty payments are correctly processed, and identifying potential compliance risks before products are shipped.

Spring 2025