Home state regulation

Home state regulation is a term used in European Union law relating to the cross border selling or marketing of goods and services.

In a directive, or regulation, where home state regulation applies, if a firm based in country A is selling into customers living in country B, they are regulated according to the laws of country A. In turn, country B has to accept that the laws of country A are sufficient under the principle of mutual recognition. Home state regulation is often held to help the single market, as firms only need to be aware of their own country's laws, rather than 27 sets of national law.