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ARTICLE | 2 min read
Logistics & competition law: Navigating the compliance tightrope
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As global trade accelerates and e-commerce reshapes consumer expectations, cross-border logistics has become the backbone of international commerce. Yet, this rapid evolution brings complex competition law challenges that logistics providers, retailers, and platforms cannot afford to ignore.

Published 15 January 2026

With the EU tightening its regulatory grip through initiatives like ICS2 (Import Control System 2) and the Foreign Subsidies Regulation (FSR), businesses face a dual imperative: optimise supply chains while staying compliant.

Cross-border logistics is no longer a simple matter of moving goods from A to B. It involves navigating customs regimes, tariff structures, and security protocols across multiple jurisdictions. For instance, the full implementation of ICS2 Release 3 on 1 September 2025 extended mandatory Entry Summary Declarations (ENS) to all modes of transport, including road and rail. Such stringent pre-arrival data requirements for goods entering the EU increase compliance costs and operational complexity, and risk creating barriers to entry for smaller players, raising questions about competitive neutrality.

From a competition law perspective, the concern is whether these regulatory burdens disproportionately favour large incumbents—global carriers and integrated platforms—over smaller logistics providers and retailers. If compliance costs become prohibitive, market concentration could intensify, reducing consumer choice and innovation.

At the same time, the EU’s FSR creates its own dynamic. In force since 12 July 2023, it is a major regulatory instrument enabling the European Commission to investigate and address distortions of competition in the EU internal market caused by subsidies granted by non EU governments. It is relevant to the logistics sector which is characterised by large scale procurement, infrastructure contracts, cross border mergers, and intense competition involving global players (in some cases state backed). Referencing in this commentary the public procurement element, foreign backed logistics firms (including state owned enterprises or heavily subsidised non EU competitors) may face mandatory notification if bidding for large procurement contracts and having received significant foreign financial contributions. This may create tension between the larger EU-based logistics operators keen to protect themselves from what they may regard as unfair competition, and the procuring authorities/entities who are seeking the best service on the best financial terms.