Internal Market

The EU's Internal Market (or Single Market) is an area without internal frontiers in which the free movement of goods, persons, services, and capital is ensured. Based on Article 114 of the Treaty on the Functioning of the European Union (TFEU), the EU can adopt measures to establish and ensure the functioning of the internal market. Recently, to address cybersecurity risks in digital products, the EU passed the Cyber Resilience Act (CRA) to create uniform standards for such products, thereby strengthening the digital security and resilience of the internal market.

If Taiwanese companies want to sell products (including hardware, software, and components) in the EU internal market, they must comply with regulations like the Cyber Resilience Act (CRA). The CRA has extraterritorial effect, meaning that regardless of where a manufacturer is headquartered, if their product is placed on the EU market, they are bound by its lifecycle cybersecurity obligations, including security-by-design, vulnerability management, and update support. Non-compliance can lead to severe penalties, including fines of up to €15 million or 2.5% of global annual turnover, and products may be recalled or banned from the market.

The EU's Cyber Resilience Act (CRA) is the most directly relevant regulation, imposing mandatory cybersecurity requirements throughout the entire lifecycle of digital products. While ISO/IEC 27001 (Information Security Management Systems) is a voluntary, organizational-level certification and cannot directly substitute for the CRA's product-level compliance, its framework for risk assessment and secure development provides a strong foundation for CRA adherence. Additionally, industry-specific standards like ISO/SAE 21434 for the automotive supply chain are also highly relevant.

Winners Consulting is Taiwan's first professional management consulting firm to integrate ERM, industrial engineering, technology law, and data science. Our founder has a background in preventive law, and our interdisciplinary team includes tech lawyers and ISO lead auditors who have assisted leading semiconductor companies like TSMC and MediaTek in enhancing their cybersecurity and trade secret protection. We can help you vertically integrate the requirements of the Cyber Resilience Act with your existing ISO certifications, corporate governance, and internal control systems, ensuring compliance with the EU's strict standards in the most efficient way, avoiding redundant efforts.