Beyond Borders, Beyond Liability: Robert Jeffrey on Europe's Changing Business Landscape
As the European Union prepares to introduce the EU Product Liability Directive 2026 from 9 December 2026, businesses selling products in the European market will need to pay closer attention to accountability, compliance and cross-border operations.
The new framework expands the scope of product liability, bringing software, AI systems and other digital products into focus while clarifying the responsibilities of businesses involved in bringing products to the EU market.
To understand what these changes mean in practice, The Europe India Journal interacted with Mr Robert Jeffrey, Senior Advisor for International Structuring at Holdwise B.V., a Netherlands-based company that helps businesses from outside the European Union establish and manage their EU operations.
Drawing on his experience in international business structuring, he shared his perspectives on the implications of the revised directive for Indian exporters, manufacturers, e-commerce businesses and their European partners, as well as the steps companies should consider ahead of its implementation.
In this interview, Robert Jeffrey shares his insights on the following questions:
1. What makes this directive a turning point, and what is the biggest misconception?
The current EU rules date from 1985, when most products sold in Europe had a manufacturer or importer inside Europe. Today many products come directly from manufacturers in Asia through marketplaces and warehouses. The new directive makes sure an injured person can always claim from a company inside the EU.
For a manufacturer outside the EU, that is the importer or the manufacturer's authorised representative. When both are missing, the fulfilment company that stored and shipped the product is liable.
Many businesses assume the liability stays with the foreign manufacturer. In practice, an injured customer claims from the company they can reach in Europe. Without an importer or representative, that is often the warehouse. The old €500 threshold also disappears, and a contract clause that limits liability towards the injured person is void.
2. How could this change the relationship between overseas sellers and European warehouses?
Warehouses will ask for the name of the EU importer or representative before they accept stock. They will check that this name is on the product or packaging, ask for insurance covering EU claims and add indemnity clauses. For products such as heaters, chargers, batteries and toys, some will refuse stock without an EU importer, or charge more.
Since 1 November the EU charges a handling fee on small parcels from outside the EU, so more sellers keep stock in European warehouses. Indian sellers with a reliable EU importer or representative will find it easier to get warehouse space.
3. Could the rules create barriers for smaller Indian exporters?
There is some extra cost and paperwork. Most of it is already required under the EU product safety rules that apply since December 2024. The new directive adds the financial consequence.
A smaller exporter can sell through an EU importer, appoint an authorised representative with a written mandate, or set up its own EU company once volumes grow. Some representative services are very cheap. Since the representative is now liable, ask what insurance stands behind it. Indian companies should also check that their own product liability insurance covers claims in the EU.
4. Software and AI are now covered. Who is accountable?
Software counts as a product, including AI systems. The software developer is treated as the manufacturer. When software is part of a device, the device manufacturer is liable for the whole product, and the software developer can also be liable for its part.
The manufacturer remains responsible after the sale for damage caused by its updates, or by a missing security update needed to keep the product safe. For complex products such as AI, a court may presume a defect when proof is too difficult for the injured person.
The directive covers personal injury, damage to private property and loss of private data. Business data and financial loss fall outside it. Software sold to businesses is therefore less exposed than consumer apps or connected devices.
Indian tech companies serving European consumers should plan security updates for the full support period and keep records of their security work.
5. Where do contracts and insurance fall short?
Towards the injured person, liability cannot be limited by contract. Between businesses, indemnities still apply, so the company that paid can recover the money from the responsible company. That only helps when the responsible company has assets or insurance within reach. Enforcing a European judgment in India can require new proceedings there.
Insurance policies often limit the territory or have low limits per claim, while claims can come up to 10 years after a product is first sold, and 25 years for injuries that appear late. Companies should back indemnities with insurance that covers the EU, and record per batch when goods were first offered for sale.
6. What are the three most important steps now?
First, list every product sold in the EU with its manufacturer, EU importer or representative and warehouse, and check the EU name and address on the packaging.
Second, where no EU importer or representative exists, appoint one with a written mandate, or set up an own EU company.
Third, make sure product liability insurance covers the EU, and update agreements with warehouses, marketplaces and buyers.
European warehouses, marketplaces and buyers will prefer suppliers with a clear company in Europe. Indian companies that arrange this before December will have an easier start than competitors who wait.
Additional point
The new rules apply to products first made available in the EU after 9 December 2026. Products on the market before that date remain under the old rules, so a record of when each batch was first offered for sale can matter later.
Robert Jeffrey is Senior Advisor, International Structuring at Holdwise B.V. in Hoofddorp, the Netherlands.
Holdwise helps companies from outside the EU set up and run their own company in the EU.
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