Explanatory Memorandum to COM(2021)547 - Amendment of Directive 2014/53/EU on the harmonisation of the laws of the Member States relating to the making available on the market of radio equipment - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2021)547 - Amendment of Directive 2014/53/EU on the harmonisation of the laws of the Member States relating to the making available on ... |
|---|---|
| source | COM(2021)547  |
| date | 23-09-2021 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
Since 2009, the Commission has been seeking to limit the fragmentation of the market for charging interfaces for mobile phones and similar devices. However, such initiatives only led to voluntary schemes that are not legally binding and thus do not ensure consistent and uniform application.
In June 2009, following a request from the Commission, major producers of mobile telephones agreed to sign a memorandum of understanding (MoU) on harmonising chargers for data-enabled mobile phones sold in the EU 1 . The signatories agreed to develop a common specification based on the USB 2.0 micro-B interface, which would allow full charging compatibility with the mobile phones to be placed on the market.
The MoU reduced market fragmentation and attracted almost global alignment. Its implementation led to an effective reduction in the number of charging solutions for mobile phones from 30 to only three. However, the MoU also allowed for the use of proprietary charging interfaces, and one such solution continued to be used (and still is) by a major mobile phone manufacturer, thus preventing full interoperability. In addition, the MoU never addressed the environmental issues arising from the continued existence of those different charging interfaces and charging communication protocols.
Without EU action, this fragmentation of the market for charging interfaces and charging communication protocols is expected to persist and environmental impacts will remain unaddressed.
Ever since the MoU expired in 2014 (after two letters of renewal), the European Commission has been trying to foster the adoption of a new voluntary agreement. In March 2018, following several rounds of discussion among the relevant manufacturers and exchanges of views with the Commission, the industry proposed a new MoU on a future common charging solution for smartphones. However, the Commission did not consider the new MoU to be satisfactory as it is not in line with the EU’s harmonisation objectives, which seek to limit fragmentation of charging solutions (both the charging interfaces and the charging communication protocols) for mobile phones and similar items of radio equipment. The proposed new MoU continued to allow for proprietary solutions (vendor-specific connection means), which the Commission no longer considers justified in view of the technical advantages provided by the introduction of the USB Type-C interface.
In this context, the Commission launched in 2018 an impact assessment study for a possible proposal aimed at implementing a common solution for charging mobile phones (and possibly other similar categories or classes of radio equipment). While the original objective of this initiative was to improve consumer convenience, the study concluded, that imposing a common charging interface and a common charging communication protocol on the side of the radio equipment (smartphones, but possibly also tablets, cameras, readers, etc.), while encouraging or imposing unbundling (i.e. the supply to the end-user of the radio equipment without the charging device), would benefit consumers and reduce electronic waste (e-waste). It concluded that only harmonising the charging interface (in the case of radio equipment charged via wired charging this interface being the charging receptacle) would not achieve full interoperability of charge. In fact, currently, various charging communication protocols exist and not all ensure the same charging performance if a charging device from another brand is used. Additionally, the study concluded that having a common charging device across different types of radio equipment would be likely to increase consumer convenience overall. Regarding wireless charging (i.e. more generally charging technology other than wired charging), the study concluded that if any breakthroughs in wireless charging technology were to happen, this could undermine the rationale for a common connector solution, by significantly reducing the relevance of wired charging solutions in general. In the light of these conclusions, in October 2020 the Commission launched two complementary studies, on unbundling mobile phones and similar portable electronic devices and wireless charging technologies in order to strengthen the evidence base for the proposal.
In January 2020, the European Parliament adopted a resolution 2 calling for the urgent adoption of a standard for a common charger for mobile phones in order to avoid further internal market fragmentation. Specifically, the resolution called on the Commission to adopt a legislative measure, if necessary, to establish a common charger. It also urged the Commission to ensure that consumers are no longer obliged to buy new chargers with each new item of radio equipment and that unbundling measures (consisting in the supply to the end-user of radio equipment without a charging device) should be introduced with a common charging solution, as otherwise the aim of reducing the volume of charging devices produced per year and hence reducing electronic waste (e-waste) would not be achieved.
The Commission adjusted 2020 work programme 3 , specifically states that there will be a new proposal on common chargers for mobile phones and similar categories or classes of radio equipment.
In order to achieve the ultimate goal of a common charger and as preconditions for impactful and meaningful unbundling, the three supporting studies, which were conducted found that radio equipment shall integrate: a harmonised charging interface at the radio equipment end (the charging receptacle in the case of radio equipment charged via wired charging), a minimum common interoperability of charging through a harmonised charging communication protocol, and detailed information about charging requirements of the radio equipment.
The design of radio equipment falls within the scope of Directive 2014/53/EU 4 on the harmonisation of the laws of the Member States relating to the making available on the market of radio equipment. On the other hand, the characteristics of the external power supply are falling within the scope of the Directive 2009/125/EC of establishing a framework for the setting of ecodesign requirements for energy-related products. 5
This proposal is aimed at preventing fragmentation of the market when it comes to charging interfaces and charging communication protocols, enhancing consumer convenience and reducing e-waste. In particular, it will:
- harmonise the charging interface for mobile phones and similar categories or classes of radio equipment (tablets, digital cameras, headphones and headsets, handheld videogame consoles and portable speakers) that are recharged via a wired charging, so that they can be recharged by using a common charging receptacle;
- guarantee that such devices, where they support fast charging, incorporate at least the same charging communication protocol;
- allow for future harmonisation in this area in response to technological developments, including harmonisation of any type of charging interface other than wired charging;
- introduce requirements so that end-users are not obliged to purchase a new charging device whenever they purchase a new mobile phone or similar item of radio equipment and;
- introduce requirements so that, when purchasing a mobile phone or similar item of radio equipment, end-users receive the necessary information on its charging performance characteristics and the charging device that can be used with it.
Contents
- An Impact Assessment was carried out to examine policy options for:
- (b) support for the relevant charging communication protocol on the radio equipment and informing consumers about the charging performance; and
- The following consultation activities were conducted between May 2019 and April 2021 in order to assess potential areas for revision and the impacts of the suggested policy option in various areas:
- Mitigated by the transition period as more and more manufacturers will head towards the common connector even in the baseline
- The proposal is to amend Directive 2014/53/EU which already requires in its Article 47:
(a) harmonisation of the radio equipment charging interface;
(b) support for the relevant charging communication protocol on the radio equipment and informing consumers about the charging performance; and
(c) making available on the market of at least unbundled solution.
| Policy Option | (A) Harmonisation of the end-device connector | (B) Support of the relevant charging protocol on the end-device and informing consumers about charging performance | (C) Making available on the market at least unbundled 6 solutions |
| Option 0 | No action | No action | No action |
| Option 1 | Mandatory | No action | No action |
| Option 2 | No action | Mandatory | No action |
| Option 3 | No action | Mandatory | Mandatory |
| Option 4 | Mandatory | Mandatory | No action |
| Option 5 | Mandatory | Mandatory | Mandatory |
For all options, there are sub-options of a narrow scope (i.e. covering mobile phones only) or a broader scope (also including certain devices with charging characteristics that are comparable to those of a mobile phone). The preferred policy option is option 5 with a broad scope as it involves the fairest trade-off between all the objectives and allow a win-win situation for the majority of stakeholders and the environment.
• Consistency with existing policy provisions in the policy area
The proposal introduces additional requirements, to be applied to mobile phones and similar categories or classes of radio equipment, in Directive 2014/53/EU, which establishes a regulatory framework for the making available on the market and putting into service in the Union of radio equipment and guarantees for that equipment the proper functioning of the internal market.
• Consistency with other Union policies
The proposal relates to the Commission’s Circular Economy Action Plan, which announces initiatives affecting the entire product life cycle, e.g. targeting their design, promoting circular economy processes, fostering sustainable consumption, and aiming to ensure that the resources used are kept in the EU economy for as long as possible.
A proposal for legislation on common chargers for mobile phones and similar categories or classes of radio equipment is included under the second priority of the Commission’s 2020 work programme (‘A Europe fit for the digital age’).
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The proposal is based on the same legal basis as the legislative act that is being amended, i.e. Article 114 of the Treaty on the Functioning of the European Union.
• Subsidiarity (for non-exclusive competence)
The internal market is a competence that is shared between the Union and the Member States.
One of the objectives of Directive 2014/53/EU is to guarantee the proper functioning of the internal market. Article 3(3)(a) of the Directive, which applies if relevant Commission delegated act is adopted, refers to common chargers.
Recital 12 of the Directive states that interoperability between radio equipment and accessories such as chargers simplifies the use of radio equipment and reduces unnecessary waste and costs.
The absence of harmonisation in this area will lead to substantial differences between Member States’ laws, regulations, administrative provisions or practices on the interoperability of mobile phones and similar categories or classes of radio equipment with a common charging device and on unbundling.
Action at national level to address the problems could create obstacles to the free movement of goods. Furthermore, action at national level is limited to the territory of the Member State(s) in question. In view of the increasing internationalisation of trade, the number of cross-border cases is rising constantly. Coordinated action at EU level will achieve the agreed objectives much more efficiently, and, in particular, will render market surveillance more effective. It is therefore appropriate to take action at EU level.
• Proportionality
In accordance with the principle of proportionality, the proposed amendments do not go beyond what is necessary to achieve the objectives set.
The new or amended requirements do not impose unnecessary burdens and costs on industry (especially on small and medium sized enterprises) or administrations. Where negative impacts have been identified, the analysis of the preferred option proposes the most proportionate response.
• Choice of instrument
The relevant provisions of Directive 2014/53/EU can be amended by means of a Directive of the European Parliament and of the Council amending Directive 2014/53/EU. The amending Directive should be transposed by Member States by way of national legal instruments.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Stakeholder consultations
The following consultation activities were conducted between May 2019 and April 2021 in order to assess potential areas for revision and the impacts of the suggested policy option in various areas:
–an inception impact assessment (2018-2019) targeted citizens, consumer associations, non-governmental organisations (NGOs), manufacturers’ associations, and individual manufacturers;
–a public consultation (2019) targeted member states, citizens, consumer associations, NGOs, manufacturers’ associations, and individual manufacturers;
–two consumer surveys (2019 and 2021) targeted citizens;
–a stakeholders survey (2020-2021) targeted Member States, citizens, consumer associations, and manufacturers;
–targeted interviews (2021) targeted consumer associations, environmental associations, market surveillance authorities, NGOs, manufacturers’ associations, and manufacturers;
–expert group meetings targeted consumer associations, Member States, market surveillance authorities, NGOs, manufacturers’ associations, and manufacturers.
• Collection and use of expertise
The Commission launched an impact assessment study supported by three studies for a possible legal proposal aiming at: removing fragmentation and addressing the consumer convenience; reducing e-waste; being forward looking and monitoring the state of play of future charging technologies (e.g. wireless), aiming to both preventing fragmentation yet without hampering innovation. The three supporting studies are: an impact assessment study on a common solution for charging mobile phones and possibly other small and medium portable devices (“the first study”) 7 ; an assessment of the status of wireless charging technologies used for mobile phones and similar devices (“the second study”); and an impact assessment study on Unbundling of Chargers (“the third study”).
• Impact assessment
The first supporting study found that the 2009 MoU had been effective in harmonising charging solutions (both the charging interface and the charging communication protocols) and improving consumer convenience. However, it had not achieved full harmonisation of the charging solutions. In addition, unbundling had not been achieved to any significant extent, with only some manufacturers in the Union offering consumers the option of buying a phone without a charging device, hence limiting the expected benefits for the environment.
The first study found that a majority of EU citizens who participated in the Commission’s public consultation on mobile phone chargers were dissatisfied (41%) or very dissatisfied (22%) with ‘the current situation regarding mobile phone chargers and their seamless interconnection’, and 76% agreed or ‘strongly’ agreed that the current situation results in inconvenience for mobile phone users. There also appeared to be support among respondents for a common charger. 63% were in favour of the Union exercising its regulatory power to mandate a charger standard, while 31% considered that the Union should promote an industry-wide agreement. Only 6% of the citizens surveyed suggested that the Union should refrain from any form of intervention. Public authorities, NGOs and consumer organisations also expressed support for a common charging solution.
The first study also found that the consumption of raw materials to produce charging devices has environmental impacts as well as impacts in terms of generating e-waste at the end of product life. It estimated that mobile phone charging devices were responsible for around 11000 t of e-waste in 2018 and the associated life-cycle emissions were around 600 ktCO2e. Those amounts are expected to increase in the coming years, driven mainly by the trend towards heavier fast chargers.
The study refers to another major technological development: the non-electrical contact (wireless) charging. This technology relies on a charging interface that does not use a dedicated charging receptacle (unlike with radio equipment, which is charged via wired connection). Since the introduction of wireless charging-enabled phones, their consumer take-up has grown steadily. Between 2016 and 2018, sales increased six-fold, to around 44 million units, or around 28% of sales in 2018 8 . However, this technology is not seen as a replacement for wired charging at the moment because of the efficiency rates of such chargers. Furthermore, given the current coexistence of wireless charging and conventional wired charging, the potential for e-waste reduction is limited as wireless chargers make more intensive use of materials than wired chargers.
The first study also considered the extent to which an initiative on a common charger could support the current trend of voluntary unbundling (i.e. economic operators offering phones without charging devices) in order to secure environmental benefits and give customers that option. It concluded that such an initiative, accompanied by other measures to stimulate unbundling, could contribute to the EU’s environmental objectives. The higher the rate of unbundling, the greater the benefits for the environment and for consumers, in terms of cost savings and convenience.
According to the second study, wireless charging is still a developing technology showing low fragmentation of the charging interfaces and a good level of interoperability among charging solutions, it would therefore seem premature to introduce mandatory requirements for that technology. However, as the technology develops and it is incorporated into more products fragmentation may develop if different charging interfaces and charging communication protocols are used.
According to the third study, the unbundling options involve very clear and obvious trade-offs, most importantly that of environmental benefits versus a financial cost and loss of convenience for consumers. The majority of stakeholder survey respondents, (public authorities, civil society organisations and private citizens), preferred the option of obliging manufacturers and distributors to give customers the choice of whether or not to purchase a new external power supply (EPS) and/or cable with a new mobile phone. However, six out of ten industry respondents felt that each mobile phone manufacturer or distributor should be free to choose how they sell their phones and chargers (i.e. what to include in the retail box).
The third study indicated that, as of October 2020, some manufacturers (accounting for 30- 40% of market share) had announced the removal of the EPS (and other accessories) from the retail box for certain new models. Others are considering their options, and it seems highly likely that at least some will also begin to offer unbundled solutions in the near future. However, those manufacturers that have invested heavily in proprietary charging technology appear less keen, since the high charging performance of their bundled phones and EPS is an important part of their marketing strategy. However, manufacturers that have developed these solutions fail to demonstrate that this is because of the development and not because their solution blocks or limits the efficiency of using other chargers.
A harmonised charging interface at the radio equipment end (i.e. in the case of radio equipment charged via wired charging, this being the charging receptacle), minimum common interoperability of charging through a harmonised charging communication protocol, and the provision of information on charging requirements of their radio equipment are therefore preconditions for an impactful and meaningful unbundling.
An impact assessment has been carried out which examined the policy options that combine the three (3) different measures of: (a) harmonisation of the radio equipment charging interface; (b) support for the relevant charging communication protocol on the radio equipment and informing consumers about the charging performance; and (c) making available on the market of at least unbundled solution.
For all options, there are sub-options of a narrow scope (i.e. mobile phones only) or a broader scope (certain devices with charging characteristics that are comparable to those of a mobile phone). The preferred policy option is option 5 with a broad scope as it involves the fairest trade-off between all the objectives and a win-win situation for the majority of stakeholders and the environment.
Option 5 is expected to generate environmental benefits by reducing the greenhouse gas (GHG) emissions by around 180 ktCO2e yearly, material use by about 2 600 t yearly, and reducing e-waste by 980 t yearly. The unbundling of the EPS contributes the most thanks to less extraction of resources, manufacture, transport, use and disposal of the chargers.
As regards consumer convenience, the preferred option will ensure interoperability through a common interface and charging performance, reducing sales of standalone EPS and cables and promoting their reuse. Regarding the harmonisation of the charging interface, imposing a USB type C charging port on the radio equipment is sufficient to address the inconvenience faced by the consumers that are not capable of charging their device because there is no compatible charger at their disposal. This will also translate into a reduction in consumer spending on those items by around EUR 250 million yearly.
The preferred option is expected to improve the economic operators’ turnover overall by EUR 105 million yearly. The turnover benefits for retailers and distributors (EUR 457 million yearly), of charging devices not being included in the retail box and therefore being bought more often standalone outweigh the negative impact on the turnover of device manufacturers (EUR 352 million yearly) incurred by the implementation of the common connector for device manufacturers and also the loss of profit for EPS manufacturers.
The direct costs for manufactures that do not use the common connector and have to redesign their equipment will be mitigated by a transition period and therefore are deemed negligible. The direct costs for manufactures who currently use proprietary fast charging communication protocols not compatible with the common solution is estimated at EUR 30 million.The indirect costs are difficult to estimate (because of the manufacturers’ unwillingness to divulge such information) and will come only from the loss of royalties for manufacturers that do not already use the common connector for their products.
• Regulatory fitness and simplification
Directive 2014/53/EU already requires manufacturers to ensure that radio equipment placed on the Union market is designed and manufactured in accordance with the essential requirements set out therein and that it is accompanied by information (e.g. on safety, intended use of radio equipment and usage restrictions). The new requirements will apply only to some categories or classes of radio equipment and are therefore not expected to create an additional burden.
The amendments are not extensive and do not significantly alter the current legal framework on radio equipment.
• Fundamental rights
Harmonising the interface for mobiles phones and other similar devices, in so far as they are recharged via wired charging, so that they can be recharged by using a common charging receptacle and a common charging communication protocol, and unbundling those devices from their chargers will increase the level of environmental protection (Article 37 of the Charter) and the consumer protection (Article 38 of the Charter).
It is estimated that mobile phone chargers were responsible for around 11 000 tonnes of e-waste in 2018 and the associated life-cycle emissions were around 600 ktCO2e. These amounts are expected to somewhat increase in the coming years, driven namely by the trend of shifting to heavier fast chargers.
The proposal will thus reduce environmental waste and ensure consumer convenience.
4. BUDGETARY IMPLICATIONS
This proposal does not have any implications for the Union budget.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
– the Commission to review the operation of the Directive and report thereon 2 years after the date of applicability of the Directive and every five years thereafter; and
–the Member States to send to the Commission a report on its application one year after the date of applicability of the Directive and every two years thereafter.
Article 2 of the proposal provides that Member States shall inform the Commission on the transposition of the amendments.
• European Economic Area
The proposed act is of relevance to the EEA and should therefore extend thereto.
• Detailed explanation of the specific provisions of the proposal
Article 1 of the proposal amends certain provisions of Directive 2014/53/EU.
The main amendments to be introduced to Directive 2014/53/EU by the proposal are the following.
A new paragraph is added in Article 3 (which sets out the essential requirements) and a new Annex is inserted.
New paragraph 4 (Article 3): This paragraph requires items of radio equipment, listed in a new Annex (Part I) added by the proposal, to comply with the charging interface and charging communication protocol described in that new Annex. The same paragraph empowers the Commission to amend, via delegated acts, the contents of the new Annex, which can also allow in future, if needed, to address any additional type of charging technologies other than wired charging
New Annex (Part I): It requires that mobiles phones and the similar radio devices, if they are capable to be recharged via wired charging, are equipped with the USB Type-C receptacle and, if they also require charging at voltages higher than 5 volts or currents higher than 3 amperes or powers higher than 15 watts , incorporate the USB Power Delivery charging communication protocol.
A new Article 3a is inserted on the supply of certain categories or classes of radio equipment without charging devices.
This new Article requires that if an economic operator supplies to the end-users radio equipment together with a charging device, the economic operator shall be required to also offer to supply to all end-users the same radio equipment without any charging device.
Article 10 (8) is amended so that a new information requirement is added.
More specifically, in the case of radio equipment to which the new requirements of the proposal will apply, information shall be provided on its charging performance characteristics as well the power delivery of the charging device that can be used with that radio equipment. The details of the information are specified in the new Annex (Part II) and the Commission is empowered to amend, via delegated acts, the contents of that new Annex (part II).
Article 17, which sets out the applicable conformity assessment procedures, for demonstrating compliance with the essential requirements set out in Article 3 of Directive 2014/53/EU, is amended in order to add references, it its paragraph 2, to those new requirements that are proposed to be inserted in Article 3 of Directive 2014/53/EU (essential requirements).
The manufacturer will thus always have the choice to follow the internal product control procedure in order to demonstrate compliance with those new requirements (essential requirements).
Articles 40 and 43 are amended in order to align them with the new requirements added by the proposal.
In this way, Member States will have the powers to take measures against those products, which are not compliant with the new requirements.
Article 44, which is on delegated powers is amended in order to add references to the delegated powers conferred on the Commission via the proposal.
Article 2 requires Member States to transpose the amendments by [PO please insert date – 12 months after adoption] and apply them from [PO please insert date 12 months after the end of the transposition period indicated in the paragraph above].
Any requirements to be introduced by the proposal will not apply to any radio devices placed on the Union market before that date of applicability of the present Directive.