Closing the gap between rules and reality: rethinking EU market surveillance

The European Economic and Social Committee’s latest evaluation of the Market Surveillance Regulation (MSR) confirms that the EU has built a robust legal foundation to ensure only compliant products enter the Single Market. This objective remains widely supported by stakeholders as essential for consumer protection and fair competition.

However, the report highlights a growing disconnect between regulatory intent and real-world outcomes. Rapid digitalisation, globalised supply chains and the rise of e-commerce have fundamentally reshaped the market environment, putting increasing pressure on existing enforcement mechanisms.

The digital challenge

One of the central findings is that digital trade has outpaced enforcement capacity. Non-EU sellers, small consignments and complex logistics chains make it difficult to identify responsible economic operators. As a result, non-compliant products continue to enter the EU market, particularly via online platforms. Even when authorities act, enforcement often lacks lasting impact. Products removed from online marketplaces frequently reappear under new listings, weakening deterrence and exposing consumers to repeated risks.

Limited resources, uneven implementation

The effectiveness of the MSR is further constrained by limited financial and human resources. Many national authorities are unable to carry out sufficient inspections relative to the scale of the market. At the same time, enforcement varies significantly across Member States. This creates an uneven playing field, where compliant businesses, especially SMEs, face stricter oversight than some non-EU competitors. 

Fragmentation and coordination aps

The evaluation also points to challenges in regulatory coherence. Overlaps between the MSR, product safety rules and digital legislation create confusion, particularly for smaller operators. Coordination between market surveillance and customs authorities remains inconsistent, reducing the EU’s ability to intercept non-compliant products at its borders. 

Towards a more coherent legal framework
To address these challenges, the report calls for a more integrated legislative approach. A consolidated European Product Act could streamline existing rules, reduce fragmentation and clarify responsibilities across the compliance chain.

Greater legal clarity would not only support enforcement authorities but also make compliance more manageable for businesses, particularly SMEs.
 

Recommendations 

A key recommendation is to significantly reinforce enforcement capacity. Authorities need stable funding, adequate staffing and clear performance indicators to ensure consistent implementation across the EU. The report also highlights the potential of AI-assisted risk analysis. Advanced digital tools could help authorities identify high-risk products, detect patterns of non-compliance and allocate resources more efficiently.

In addition, the MSR must evolve to reflect the realities of digital trade by adapting rules to digital markets. This includes introducing proportionate responsibilities for large online intermediaries whose scale creates systemic risks. Stronger and more dissuasive enforcement tools are also needed to address repeated non-compliance, particularly in cases involving third-country sellers. A risk-based approach should prioritise high-impact actors and product categories.

Furthermore, better coordination and data sharing are essential. The report recommends binding rules for cooperation between customs and market surveillance authorities, ensuring that controls at EU borders and within the internal market are fully aligned. Improved interoperability between digital systems, such as ICSMS, Safety Gate and customs databases, would further enhance information-sharing and enforcement efficiency.

Finally, another recommendation is to enhance accountability and transparency. Strengthening the chain of responsibility is another priority. Clearer rules for authorised representatives, including minimum quality criteria and a public EU database, would improve accountability, especially for products entering the EU from third countries.
At the same time, greater transparency is needed. Publishing enforcement outcomes and improving communication with consumers would raise awareness and reinforce trust in product safety.

A call for strategic reform
 

Overall, the evaluation makes clear that the MSR’s objectives remain valid, but its implementation must evolve. Bridging the gap between rules and reality will require a shift towards smarter, better coordinated and digitally enabled enforcement. Without such reforms, the EU risks falling behind a rapidly changing market landscape. With them, it has the opportunity to reinforce trust, ensure fair competition and strengthen the integrity of the single market.

By Antje Gertsein, EESC Employers' Group member and Rapporteur of Opinion INT/1106 Evaluation of Regulation (EU) 2019/1020 on market surveillance and compliance of products.