Is the EU too Regulatory and Bureaucratic?

It is often argued that EU is far too regulatory and
bureaucratic. Outline and evaluate this claim.
This essay will examine this question by exploring four
main factors. These are; business-friendly factors, where we will see what the
EU does to protect businesses operating within it. Secondly, consumer-friendly
factors, what it does to protect the consumers purchasing goods in the EU.
Thirdly, do these laws damage new growing business within it. Lastly, can these
types of regulation work outside the EU. On this basis, this essay will
conclude that in some respects EU regulation are beneficial and, in some
respects, harmful. EU is one of the biggest distributors of manufactured goods
and services, therefore has rules and regulations for the trade that goes on
within it. It is often argued that EU is far too regulatory and bureaucratic
because of the nature of the laws it has established to protect businesses and
the people within it. It is claimed that these laws established by the EU can
only work for EU and other developed countries. This essay will conclude that
the EU protects some business via regulation and inhibits others. EU is often
seen following Neo-Liberal ideas in its politics but it can be argued that it
is losing its liberal nature with its regulatory and bureaucratic nature.

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With reference to the first and second main factor
Europe has a single market means that it has a few trade barriers between its
members this means that goods can move freely across the EU all allowing its
producers to sell its products for the highest selling price and the consumers
to purchase goods at lower prices and still have a good quality products also
allowing other businesses to find the better quality of products for a
reasonable price from any part of the EU creating and filling market gaps
giving opportunity to businesses that are trying to expand. These small
businesses in the EU are being protected by the EU competition laws which set
out laws on competition and what is seen as unfair business practices. For
example, businesses can’t fix prices meaning that there’s a certain rate for a
product to be in the market. Therefore, these businesses are not allowed to go
below it. EU also makes sure that the products produced by the manufacturers
meet with the standards laid out by them and any product that fails to meet the
basic standards are not allowed to enter the market. Besides having laws on
competition, it also protects employee rights with its equal pay act or other
health and safety laws which provides a healthy and safe working environment.
EU has often been criticized for its highly regulated laws. Since these types
of regulated laws are only seen in the EU many foreign countries see it as
unnecessary especially by world powers like America who have soft trade
regulation.
America’s soft nature has to lead to many market
leaders to exploit their positions.  For
example, Amazon in America is often accused of exploiting smaller businesses
growing within it or the businesses that are similar to them by nature. For
example, the online diaper company is an example of them misusing their power
as a market dominator it is seen trying to be a market monopoly by acquiring
many positions as it can in the online shopping industry and the web industry
even beating Google in that process. CEO Jeff Bezos doesn’t fear of spending
money to make Amazon the market leader just like he did with diaper.co. it
wanted to acquire the company, but the owners refused to sell the company, therefore,
Amazon decided to sell diapers half the price attracting most of their
customers towards them and forcing the owners to sell the company. This is not
the first time that Amazon has done something like this it has also tried
suppressing businesses operating within it. America doesn’t have those strong
regulatory regulations like the EU therefore many businesses can misuse their
powers which they wouldn’t be able to do in the EU. Amazon also faced these
allegations in the EU by its Competition Chief Margrethe Vestager asking them to submit
their data she also accused them of using that data from its smaller rivals to
gain a bigger share in the online trading market. They also contacted
businesses who operate via Amazon so that they have a strong case against them.
 Any business misusing its powers has faced
huge fines referring back to my first and second factor making the EU a place
where manufacturer and consumer can operate together on fairly protected
grounds of trading.
With
reference to my third factor, it is often argued that these laws are seen tough
for the smaller businesses who are growing. They don’t have much capital to
invest into the existing or new laws created by the EU. For example, data
protection laws can be incorporated by companies like Facebook as they can
easily have the capital to implement it, but small companies find it hard and
may face major financial issues or lose their business completely. Referring to
my final factor It is often argued that these laws can work successfully in EU
as it is mostly made up of developed and economically strong countries. If Asia
establishes laws like this, it is more likely to be failed as they are all
underdeveloped and economically weak countries who depend on foreign countries
for employment, for example, many international businesses like Primark and GAP
have their warehouses in Asia since they can provide them with cheap labour
without needing to provide them with other facilities as an employee will have
in the EU allowing the businesses to increase in their profits . For example,
Primark has their warehouse in Asian countries like Bangladesh and India
allowing the company to produce clothing for cheaper prices as these countries
don’t have any outlined minimum wages meaning they can pay them any wages they
want to. Primark pays £0.60p an hour for its employees working in the its
sweatshops saving them £6.90p per employee every hour by employing £11 Million.
This allows them to sell these items to consumers at a much cheaper price
making them profits. Making Primark the market dominator in the UK clothing
industry with the total of 5.5 billion worth of profit in 2017 making its net worth £24 billion according
to the figures produced on its website at the end of the fiscal year.
 Many brands,
for example, Amazon has their call centres in Mumbai India employing its large
population who are willing to work extra hours for less than the minimum wages
here in the UK providing a large boost in its economy by bringing in at least 6
Billion Dollars every year. Having so many laws prevents countries from growing
and causing unwanted disputes with other world economies, for example, USA has
often accused the EU to protectionist as it is often seen getting involved in
the business activities carried out by its members. Apple.co-operates through
Ireland and contributes majorly to its economy but the Eu has filed a case
against Apple for not paying proper taxes and forcing Ireland to carry on with
this argument whereas Ireland doesn’t want Apple moving into other economies
who would let them work freely without any questioning. Besides controlling the
trade EU also tries controlling individual choices for article 13 which is a
copyright legislation created to protect online content but at the same time it
threatens everyone who is working in the creative industry as it will restrict
content already in the EU or new content blocking any type of content that is
doubted to be somebody else’s unless proven.
In conclusion, EU is seen to be tough, it is
protecting the rights of businesses and those involved it. If EU had trading
laws as America everyone wouldn’t have the same opportunities and lifestyle
they have. EU protects employees making sure everyone gets treated equally even
though with minor failures like Sports direct in the UK where it was seen
exploiting its employees by paying minimum wages and forcing them to work long
shifts without any breaks. Forcing businesses to follow so many laws makes it
hard for businesses to survive if a business fails to make a profit through its
consumers it will try and recover that money through its employees by paying
them less or moving to any developing countries with less regulated or reducing
the quality of the product. EU offers its members open trade and free movement
but at the same time, it restricts them for trading with any of the BRICK
countries. EU is often said to be Neo-Liberal in its nature with its free open
market which is highly appreciated by the countries and businesses within the
EU has failed the ideology. Neo-Liberalism believes giving an individual
maximum freedom with minimum to no government intervention (A.
Haywood,2016). EU highly believes in free markets which are the policy of
unregulated market competition and completely free from government
intervention. Creating the idea of Laissez-faire which means to be left alone.
Therefore, economic activity should be entirely free from government
intervention.
Since the rise of Neo-liberalism in 1945, it has
been highly criticized by many ideologies especially the Marxist as a market
that’s left to be run by itself is at a risk to be exploited by those who are
in power. For example, the capitalist will try to dominate the markets they are
a part of like Amazon in America. Besides the European Parliamentary that are
selected to represent its countries citizens are mostly not known therefore the
European Parliament is not democratic therefore there is no representation for
the common men. Therefore, referring to the three main factors which were
firstly manufacturer and consumer-friendly it makes sure that the businesses
are protected and regulated if they are following all the ethical and legal
guidelines set by the EU and consumers get a good quality product for a better
price by creating more market gaps giving consumers more options to choose
from. Secondly, it damages new growing business with EU constantly changing and
updating its laws many new businesses find it hard to follow and implement it
financially which can be easily done by large successful firms. Lastly these
types of regulation work outside the EU where most of the countries are
financially strong and can successfully follow the EU guidelines but fail in
countries who highly depend on foreign business investment to survive.
Looking at all these factors it is clear that there
are two aspects to the question. In some aspects it’s too regulatory. In other
aspects its regulation protects them and nourishes.
Bibliography
Heywood, A.,2017. Political Ideologies: An Introduction. 6th ed.UK:PalgarveMacLean, R.M & Volpi, B (2000). EU Trade Barrier Regulation: Tackling Unfair Foreign Trade Practices. (1st ed.). England: Palladian.