Host state regulation

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

In a directive, or regulation, where host 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 B. Host state regulation is sometimes seen as hindering the single market, as firms need to be aware of 28 sets of national law. However, it is also argued that it gives better protection to consumers, who are unlikely to be aware of their rights under the laws of other EU member states.