The European Union's Packaging and Packaging Waste Regulation is designed to reduce packaging waste, increase recycling and support a more circular economy.

While environmental groups have welcomed the goals, many small online retailers and industry associations say the new requirements are adding costs and administrative complexity, particularly for businesses selling across multiple EU countries.

Some companies warn that navigating different national systems and reporting obligations could make cross-border e-commerce more difficult.

As industry groups push for simpler implementation, policymakers face the challenge of balancing environmental objectives with the needs of small businesses operating in the EU's single market.