Impact Assessment Study on Common Chargers of Portable Devices December 2019 Written by Ipsos and Trinomics, in collaboration with Fraunhofer FOKUS and Economisti Associati December – 2019 EUROPEAN COMMISSION Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Directorate Sustainable Industry and Mobility Unit C.3 — Advanced Engineering and Manufacturing Systems Contact: Unit C.3 — Engineering, Maritime and Rail Industries E-mail: [email protected] European Commission B-1049 Brussels EUROPEAN COMMISSION Impact Assessment Study on Common Chargers of Portable Devices December 2019 Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Directorate Industrial Transformation and Advanced Value Chains Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). LEGAL NOTICE This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2020 ISBN 978-92-76-01758-5 DOI 10.2873/528465 © European Union, 2020 Impact Assessment Study on Common Chargers of Portable Devices Contents EXECUTIVE SUMMARY ................................................................................................. I 1. INTRODUCTION .................................................................................................... 1 2. METHODOLOGY ..................................................................................................... 2 3. THE CURRENT SITUATION ...................................................................................... 6 3.1 Policy context .............................................................................................. 6 3.2 Key technological developments ..................................................................... 8 3.3 The market for mobile phone chargers ........................................................... 12 3.4 The market for chargers of other portable electronic devices ............................ 19 3.5 The consumer perspective ............................................................................ 23 3.6 The environmental perspective ..................................................................... 36 3.7 The perspective of economic operators .......................................................... 46 3.8 Illicit markets ............................................................................................. 49 3.9 Product safety ............................................................................................. 50 3.10 Problem definition ....................................................................................... 54 4. POLICY OPTIONS .................................................................................................. 56 4.1 The baseline ............................................................................................... 56 4.2 Elements considered .................................................................................... 57 4.3 Options shortlisted for in-depth assessment.................................................... 63 5. IMPACT ASSESSMENT ........................................................................................... 67 5.1 Decoupling scenarios ................................................................................... 67 5.2 Social impacts ............................................................................................. 77 5.3 Environmental impacts ................................................................................. 90 5.4 Economic impacts ...................................................................................... 100 5.5 Considerations for implementation .............................................................. 119 5.6 Effects on other portable electronic devices .................................................. 125 6. COMPARISON OF OPTIONS .................................................................................. 133 6.1 The likely impacts of the policy options ........................................................ 133 6.2 Other considerations .................................................................................. 140 6.3 Concluding remarks ................................................................................... 142 ANNEXES .................................................................................................................. 145 Annex A: Glossary .............................................................................................. 145 Annex B: Public consultation synopsis report .......................................................... 148 Annex C: Consumer panel survey synopsis report ................................................... 164 Annex D: Market data and information on other portable electronic devices ............... 179 Annex E: Stock Model - Methodological Annex........................................................ 197 Impact Assessment Study on Common Chargers of Portable Devices Executive summary In June 2009, following a request from the European Commission, major producers of mobile telephones agreed to sign a Memorandum of Understanding (MoU) to harmonise chargers for data-enabled mobile phones sold in the EU. The ensuing years saw a significant reduction in the fragmentation of charging solutions, in particular the widespread adoption of the “common external power supply” (in accordance with the international standards developed based on the mandate from the Commission), and convergence of around three quarters of the market to USB micro-B connectors. The remainder of the market (essentially corresponding with Apple’s iPhones) continued to rely on proprietary connectors (allowed under the terms of the MoU as long as adaptors were available on the market). Ever since the MoU expired in 2014, the Commission has been trying to foster the adoption of a new voluntary agreement. However, to date, no solution that would be acceptable to both the industry and the Commission has been found. About this study The aim of this study is to provide input for the Commission impact assessment accompanying a new initiative to limit fragmentation of charging solutions for mobile phones and similar devices, while not hampering future technological evolution. The study was carried out by Ipsos and Trinomics, with support from Fraunhofer FOKUS (on behalf of a consortium led by Economisti Associati). It is based on research and analysis undertaken between January and November 2019. It employed a mixed- method approach, combining two main tasks: first, defining the problem (including a market and technology analysis), and second, an assessment of the likely impacts of a set of policy options for a possible new initiative. The sources of evidence include primary data (collected via a series of in-depth interviews with key stakeholders, a survey of a representative panel of consumers, and the Commission’s Public Consultation) as well as secondary data (including statistics, market data, and literature on a wide range of relevant issues). Where possible, key impacts were estimated quantitatively based on a tailor-made dynamic model of the stock of chargers. Other impacts were assessed qualitatively. The focus of the study was on chargers for mobile phones, and specifically on technical options to work towards a “common” charger and their likely social, environmental and economic impacts. Other issues (including the available policy and regulatory instruments, the possibility to extend the scope to other portable electronic devices, and the issue of decoupling - i.e. the unbundling of charger from phone sales) were also considered. The current situation In light of recent technological and other developments, the current situation regarding mobile phone chargers can be summarised as follows: Absence of any binding (voluntary or regulatory) requirements as regards the interoperability of chargers for either mobile phones or other portable electronic devices. A high but not universal degree of interoperability of different charging solutions, due to the fact that cables are almost always detachable from the external power supply (EPS), and that large parts of the market have adopted i Impact Assessment Study on Common Chargers of Portable Devices technologies (including connectors) based on USB specifications and standards. Potentially significant variations in charging performance between brands and devices, due to the wide range of fast charging solutions on the market, meaning that, even if the likelihood is high that any given modern EPS can be used to charge nearly all mobile phones that are currently on the market, it may not do so at the same speed. A market in constant evolution, with USB Type-C connectors expected to gradually replace legacy USB connectors at the phone end (within the next few years) as well as the EPS end (more slowly), and innovation in fast and wireless charging technology likely to continue at a rapid pace. The available evidence points to two main problems that arise from this situation: Consumer inconvenience: