Europe has been building the Single Market for decades as one of its greatest economic and political achievements. However, even today invisible barriers persist that fragment this common space and limit its true potential. One of them, defined by the European Commission itself as one of the “ten terrible barriers”, is the disparity and complexity of product labeling.
It may seem like a technical or minor aspect, but it is not. Labeling dictates how products are marketed, how consumers are informed, and ultimately, how goods circulate within the Union. When each State (or even each region) introduces different requirements, the result is a Europe fragmented in practice, with added costs, legal uncertainty, and obstacles to free competition. The FMI points out that barriers to the internal market like this are equivalent to an internal tariff of 41% for products.
From the distribution sector, we have been warning about this problem for some time. And today, more than ever, we also have a clear, viable solution aligned with the European agenda: the decisive push for digital labeling.
The diagnosis is known. Regulatory fragmentation forces the multiplication of packaging, adapting content according to the country or language, and assuming logistical and operational costs that especially affect SMEs and operators working in several markets. This complexity not only makes products more expensive, but also slows down their arrival to the consumer and reduces the efficiency of the entire system.
But there is an even more worrying effect: physical labeling can become a market segmentation tool. When specific packaging is required for each territory, trade is hindered and dynamics that artificially fragment the internal market are reinforced. In other words, labeling can act as a disguised barrier.
Digital labeling allows overcoming these limits. By unlinking the information from the physical support, it opens the door to a much more flexible, efficient, and fully European. Through technologies such as QR codes or NFC systems, the consumer can access more complete, updated, and adapted information to their needs, without the need to multiply packaging or product versions.
The advantages are evident
First, for the consumer. The digital environment allows information to be offered in multiple languages, in accessible formats (easy reading, audio or adaptation for visually impaired people) and with real-time updates. Compared to a physical label limited by space, digital labeling expands the right to clear, understandable and complete information.
Secondly, for the Single Market itself. A harmonized digital labeling system reduces the so-called “country costs”, eliminates duplications and facilitates the free movement of products. It is, in essence, a tool for economic integration. We are not talking about deregulating, but about harmonizing better.
Thirdly, for sustainability. Fewer differentiated packages, less re-labeling, and less waste associated with regulatory or linguistic changes represent a clear step towards a more circular and efficient economy.
And, finally, for European competitiveness. In a global context in which digitalization makes the difference, Europe cannot afford to continue operating with analog models that generate friction and disadvantage compared to other markets.
It is important to underline that we are not starting from scratch. The European Union itself has already introduced elements of digital labeling in different sectors and is advancing in tools such as the Digital Product Passport. The direction is clear; what is missing now is coherence and ambition to take the next step.
That step must materialize in a harmonized European framework that establishes digital labeling as a common channel for product information. An interoperable, secure, and accessible system, that guarantees the availability of information in all official languages without forcing the fragmentation of the physical support. At the same time, this advance must incorporate safeguards to guarantee inclusion, with complementary solutions that ensure accessibility.
Ultimately, digital labeling represents a unique opportunity to transform a historical barrier into a structural advantage. It allows improving consumer information, strengthening the integration of the Single Market, and advancing in sustainability and competitiveness.
ABOUT THE FIRM
Matilde García Duarte is president of ANGED DISTRIBUTION