Offering (digital) products to the EU market? This is what you should know

Entering the European market offers significant opportunity, but it also comes with an extensive regulatory landscape — even for businesses based outside the EU. Whether you offer SaaS, run an online platform, or sell physical products via a webshop, the EU imposes strict obligations aimed at protecting consumers, securing data, and maintaining digital trust. 

This article explains the core laws most likely to affect your business when supplying products or services to EU users. We highlight which rules may apply to you, common compliance challenges, and what early action you can take to avoid costly delays, penalties or reputational damage.

Even if your business is not based in the EU, there is a broad range of relevant EU law that might pose a risk for you company. Here is what you need to know.

Is this relevant to my company?

Your business may be affected by EU digital and commercial regulations if you are engaged in any of the following:

    • Are you selling hardware or software products directly to customers in the EU?
    • Do you operate a webshop or digital platform that ships products or services to EU-based users?
    • Are you selling through distributors or intermediaries targeting the EU market?
    • Are you collecting, storing, or processing personal data of EU customers?
    • Do you offer subscription-based services, SaaS, or cloud solutions to EU users?
    • Are you running marketing campaigns aimed at customers in the EU?
    • Are you licensing digital content or software to EU-based companies?
    • Do you use EU-based servers or store EU customer data?

If you answered “yes” to any of the above, your business is likely subject to EU digital and commercial regulations. Early legal guidance can help you avoid fines, compliance issues, and operational disruptions.

What requirements do I have to fulfil?

Selling products or services in the EU comes with several legal frameworks you should be aware of. The exact obligations depend on your business model, products, and customer base—but understanding these acts will help you plan your market entry more confidently.

    1. General Data Protection Regulation (GDPR): The GDPR regulates how personal data of EU individuals is collected, stored, and processed.
      Example: If you run a cloud service or collect email addresses for a newsletter, you need to fulfill a couple of legal requirements, including a clear legal basis (e.g. consent) for the processing of the data.
    2. Cyber Resilience Act (CRA): The CRA is focused on the security of digital products, encouraging businesses to identify and manage cybersecurity risks.
      Example: If you sell smart devices or software, you should fulfill the requirements set out by the CRA, which include security measures such as regular updates, vulnerability testing, and clear documentations as well as instructions for users.
    3. EU Consumer Protection Laws: EU consumer laws cover product safety, transparency, and fair contractual terms.
      Example: If you sell software subscriptions or physical products through a webshop, you need to clearly explain pricing, delivery, cancellation rights, and warranties.
    4. Digital Services Act (DSA): The DSA applies to platforms and online services, requiring transparency, content moderation, and reporting of illegal or harmful material.
      Example: If your business operates a marketplace or allows user-generated content, you need to have policies and processes in place to handle complaints and maintain transparency with users.

These laws provide a high-level framework, but their exact relevance and requirements will depend on your business, products, and how you interact with EU users. Early assessment can save you time, reduce risk, and help you enter the EU market confidently.

Common problems 

    • Unawareness of EU law applicability: Australian businesses often discover too late that EU regulations apply to their products or services, typically when a European customer or partner requests compliance documentation. This can cause operational delays and reputational risk.
    • Data protection and privacy gaps: Australian companies handling personal data of EU customers may inadvertently fall short of GDPR requirements, particularly around consent, transparency, and secure storage.
    • Consumer rights issues: Businesses unfamiliar with EU consumer protection laws may provide unclear information on refunds, cancellations, warranties, or contract terms, exposing them to complaints or enforcement actions.
    • Platform and intermediary responsibilities: Australian companies offering digital platforms may be subject to obligations under the Digital Services Act, including reporting and transparency requirements.
    • Intellectual property and licensing disputes: Using copyrighted material, software, or trademarks in the EU without proper licensing can lead to takedown notices, legal claims, or other enforcement action.

Tip: For Australian businesses, these challenges are often avoidable with early review and planning. Understanding how EU rules intersect with your operations and products can help prevent compliance issues and support a smooth entry into the European market.

Conclusion: Next steps

These are the next steps you should take:

    1. Determine if EU law applies to your business – Understand whether your products, services, or operations fall under European regulations.
    2. Identify the most relevant EU rules – Focus on the legal acts that have the greatest impact on your company, from data protection to consumer rights.
    3. Check the specific requirements – Review obligations in areas such as privacy, cybersecurity, intellectual property, and digital service compliance.
    4. Assess your current practices – Evaluate the measures and policies you already have in place and identify gaps.
    5. Create an action plan – Decide which additional measures, policies, or processes are necessary to meet EU requirements efficiently.

It’s better – and more cost-effective – to address these issues early on.

If you need any assistance, get in touch today to see how we can help you protect your business and your customer’s trust.

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Disclaimer: This article provides general information and does not constitute legal advice. 

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Selling Digital Products or Services to the EU

FAQs

Yes. EU regulations can apply even if your interaction with EU customers is infrequent or incidental. Laws like the GDPR and EU consumer protection laws focus on the targeting of EU individuals, not the location of your business. Even a single sale or a subscription signup from an EU-based user may create obligations.

In practice, this means that sporadic sales might still require you to implement basic compliance processes, such as secure processing of personal data, privacy notices, clear terms of sale, and mechanisms for customers to exercise their rights (e.g., data access, correction, or deletion). Additionally, businesses that unintentionally “target” the EU — for example, by offering EU shipping, or translating content into EU languages — may face a higher expectation of compliance, even if transactions are occasional. Maintaining documentation of processing activities and customer interactions ensures that even infrequent EU transactions remain traceable and compliant.

If your business collects or processes personal data of individuals in the EU but does not have an establishment within the EU, you may be required under Article 27 of the GDPR to designate a representative in the EU. This representative serves as a point of contact for EU data subjects and supervisory authorities, ensuring your business can be held accountable even without a physical presence in Europe. The obligation generally applies when you offer goods or services to EU individuals or monitor their behavior (e.g., for analytics, profiling, or targeted marketing), but it may not apply for occasional or incidental processing that does not target EU users.

In practice, the EU representative must be mandated and established in an EU member state where your users reside. They act as the official contact for data protection authorities and EU individuals exercising their rights, such as access, correction, or deletion of personal data. Appointing a representative does not remove your GDPR responsibilities — your business remains fully accountable for compliance. Early designation helps streamline requests from EU authorities or customers, reduces risk of fines, and demonstrates proactive compliance with Article 27 GDPR.

Yes. GDPR applies to the processing of EU personal data regardless of where the data is physically stored. Transfers to non-EU countries must comply with GDPR requirements, such as using Standard Contractual Clauses (SCCs) or other approved transfer mechanisms to ensure adequate protection.

In practice, businesses must assess the legal basis for international data transfers, maintain contracts with processors and sub-processors, and ensure ongoing data security. This applies whether data is stored on cloud services, third-party servers, or in your own infrastructure. Documenting these transfers and protections is essential for compliance audits or regulatory inquiries.

The CRA focuses on the security of digital products, such as software, smart devices, and connected applications, that are sold in the EU market. It requires manufacturers to implement cybersecurity-by-design, maintain documentation, conduct vulnerability testing, and provide timely security updates. For the most part, the regulation will apply from 11 December 2027, meaning new products placed on the EU market from that date must comply with these requirements.

In practice, this means reviewing your product lifecycle for security risks, maintaining technical documentation, and communicating security guidance to customers. Companies should also consider legacy products—those already on the market before 11 December 2027. Existing products may remain subject to certain obligations if updates, patches, or new versions are released after the CRA enters into force. Even if your business is based outside the EU, planning for both new and legacy product compliance ensures your offerings can be legally sold in the EU and reduces liability from security incidents or regulatory enforcement.

EU consumer protection laws cover pricing transparency, contract terms, delivery, refunds, cancellation rights, and warranties. These rules ensure that EU consumers are fully informed and fairly treated, regardless of where the seller is located.

In practice, businesses should clearly communicate all terms before purchase, establish cancellation and refund processes, and document warranty or support obligations. Failure to comply may lead to complaints, fines, or restrictions on selling in EU markets.

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