German retail leaders have written to Federal Chancellor Friedrich Merz calling for stronger government action to protect the competitiveness of German and European retailers.
In a letter ahead of an informal meeting of the European Council, the German Retail Federation (HDE) said unfair competition from traders and online platforms based outside the EU threatens local companies.
The appeal highlights concerns over regulatory burdens and market distortions that HDE says put EU firms at a disadvantage.
Call for fair competition and competitive markets
In its 6 February 2026 letter, HDE urged the German government to ensure fair competition and to reduce what it described as excessive regulation that hampers the retail sector.
The trade body said that platforms and retailers from third countries often escape compliance with EU rules on product safety and consumer protection, allowing them to undercut domestic competitors.
HDE’s president emphasised the need for a level playing field to support long-term competitiveness in European markets.
The association pointed specifically to rapid growth among foreign online marketplaces that enter the EU market with lower prices and fewer regulatory obligations. Similar concerns have been raised across Europe about enforcement of EU rules in digital and cross-border commerce.
Concerns over regulatory burden and market distortions
Beyond foreign competition, HDE criticised a range of new European rules it says could further undermine business conditions for EU retailers. These include measures that HDE believes will increase bureaucratic drag or complicate compliance.
The federation called on Berlin to seek delays or reforms to such regulatory proposals at the forthcoming Council meeting.
Industry groups across Europe have previously warned that inconsistent enforcement of standards and complex regulation can disadvantage companies that operate strictly within EU law.
Advocacy organisations have called for better coordination on enforcement and more effective implementation of EU competition policy to protect European firms.
Broader context for European retail competitiveness
The HDE letter comes amid wider debate in the EU about how to balance open markets with robust enforcement of competition and consumer protection laws.
Regulators and industry associations have signalled the importance of maintaining high standards while addressing rapid changes in digital retail and e-commerce.
Recent regulatory actions in Germany and the EU have aimed at ensuring fair market conditions, including competition reviews targeting online marketplaces.
Some of these measures have prompted responses from global companies, reflecting tension between national competition law and broader EU policy goals.
The HDE’s appeal underscores the ongoing interest among European retailers in shaping policy that supports competitiveness, market fairness and balance between regulation and growth.
