The EU will fundamentally change the rules governing batteries in electronic products next year. The regulation introduces a requirement for batteries to be easily replaceable by end users or independent professionals. The objective is simple: when a battery stops working, it should not spell the end of the entire device. The change will apply to appliances newly placed on the market and will affect their design, and the economics of production (the price).
Regulation (EU) 2023/1542 on batteries sets common rules for the entire battery life cycle, from production to recycling. It introduces a digital battery passport and QR code labelling. The Regulation applies to many consumer electronic products and aims to extend product lifetimes, reduce e-waste, and increase the use of recycled materials in new batteries. It places greater requirements on manufacturers regarding product design and repairability..
▢ When the battery determines an appliance’s lifespan?
Battery replacement is no longer relevant only to mobile phones and laptops. Rechargeable batteries are now a common feature of household products, from cordless stick and robotic vacuum cleaners to small kitchen appliances and personal care devices. In these products in particular, the battery often determines how long the product will actually remain in use.
For example, the batteries in cordless stick and robotic vacuum cleaners typically last only a few years, while the motor and the overall construction have a significantly longer service life. Sencor appliances commonly come with a ten-year motor warranty, while batteries are covered by a standard two-year warranty on their capacity. “Customers find it frustrating when the appliance itself is still working but has to be put aside, or requires a complicated service process, simply because of the battery. This is precisely where replaceable batteries make real sense,” explains Martin Štancl, Product Manager at Sencor.
For Sencor, battery replacement is not a new issue. The brand already treats batteries in many rechargeable products as consumable components, with replacement available through authorised service centres and, in some cases, directly by consumers
▢ Higher demands on manufacturers will affect final prices
While the purpose of the regulation is clear from the customer’s perspective, for manufacturers it represents a fundamental change in development planning, production, and long-term after-sales support. By extending product life cycles, the regulation requires companies, from the moment a product is placed on the market, to plan for the availability of spare parts, sufficient service capacity, and long-term support for individual models.
“These changes will naturally be reflected in manufacturers’ cost structures and may also affect the final prices of consumer electronics. Companies will have to plan much more precisely how long they will support individual models, how many spare parts they will keep in stock, and what service capacity they will need to provide. The regulation promotes a long-term approach to products, but at the same time places greater demands on financial and operational planning,” says Ivan Lužica, Partner at Moore Consulting SK, adding: “However, the impact on prices will not be the same across all categories. In highly competitive segments such as headphones and portable speakers, manufacturers can be expected to absorb the additional costs in their margins in order to remain price-competitive. By contrast, modest price increases are more likely in less intensely competitive categories, where the market is less price-sensitive.”
In addition to its economic impact, the regulation will significantly affect product development and companies’ internal operations. “The new regulation is not a partial technical adjustment, but a comprehensive change affecting product design, conformity-assessment procedures, and internal quality management. Manufacturers must develop new design solutions, carry out expanded safety and functional conformity testing, update technical documentation, and establish internal processes ensuring long-term compliance with regulatory requirements throughout the product life cycle. Businesses that did not begin preparing for these changes sufficiently early may face a significant implementation gap when the requirements take effect in 2027,” warns Luboš Cinek, Sencor’s regulatory expert.
According to experts, the timetable for the new regulation also leaves little scope for significant delays. “European legislation sometimes gives Member States flexibility in implementation, allowing manufacturers, for example, to rely on transitional periods. That is not the case here. To ensure a level playing field in the market, the regulation has a fixed timetable, and manufacturers must work with it in the form agreed by the Member States and Members of the European Parliament. It should also be borne in mind that failure to meet the requirements may result in penalties,” warns Viktor Daněk, Deputy Director of the EUROPEUM Institute for European Policy.
▢ Supporting the circular economy and introducing the digital battery passport
The ban on company chains is removed by Act No. 29/2026 Coll. on the Commercial Register, which also amends the Commercial Code and removes § 105a entirely. From 17 August 2026, a single natural person may own any number of single-member limited liability companies, and a single-member company may become the sole shareholder of another company without the need to modify the ownership structure.
The simplification will have the greatest impact on:
- establishing companies;
- the purchase and sale of business share; and
- changes in ownership structures.
Until now, entrepreneurs who wanted to remain the sole owner of an entire group had to include an additional shareholder with a minimal share in the structure. Despite having a formal role, such a shareholder had voting rights and a legal entitlement to a share of profits. This required additional contractual arrangements, especially agreements on the exercise of voting rights and option agreements for the future transfer of the share back.
After the change, these structures will no longer be necessary, and the holding structure can be organised directly, with a single owner at the top of the group.
The change is also important in relation to company transfers. Structures involving formal minority shareholders often raised questions during buyer due diligence and frequently resulted in requests to simplify the structure or adjust the purchase price. The abolition of the ban on company chains allows such structures to be simplified before a transaction and enables companies to be sold with a transparent ownership structure.
Entrepreneurs affected by this change should consider the following steps:
- the ban on company chains remains applicable until 16 August 2026. Any breach of the rules may still result in the risk of company dissolution. Therefore, it is advisable to wait until the new legislation becomes effective.
- From 17 August 2026, existing holding structures may be reviewed. Where a minority shareholder was included only to avoid the restrictions under § 105a of the Commercial Code, their share may be acquired and the structure simplified. When establishing a new group after this date, a single-member structure can be created directly. At the same time, it should be considered that the same Act introduces, from the same date, a mandatory form of incorporation documents, either in the form of a notarial deed or a document authorised by an attorney. Every such structure will therefore be subject to this new requirement.
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