Google said some Asia-Pacific retail advertisers have cut spending because the EU removed its customs exemption for low-value parcels, The Register reports. Chief business officer Philipp Schindler raised the point on the third-quarter earnings call while explaining part of the slowdown in ad sales. According to The Register, the EU introduced a temporary €3 duty per consignment worth less than €150 from outside the bloc. Chinese e-commerce platforms are considered major advertisers for Google and Meta.

What it means: Google's remark is one of the first concrete signs that the EU's changes on low-value parcels are affecting how large Asian platforms behave. When a cheap product carries a duty and fees per item or shipment, the margin for aggressive advertising shrinks and platforms rethink how much to spend on attracting European buyers. From 1 November the EU handling fee of €2 per item also applies, for which AADE has issued guidance, so the pressure will grow. For Greek retailers, especially in clothing, accessories, homeware and low-value electronics, this means a slightly more level playing field against platforms shipping directly from China. It may also mean lower cost per click in some categories if big advertisers pull back. This is a good moment to review campaigns and bid limits. The platforms will probably respond with warehouses inside the EU, where goods arrive in bulk and pay no per-parcel fee, so the advantage for domestic sellers may be temporary.

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