If you’re like most people today, you’ve got a drawer, cupboard or cookie jar full of various charging cables to the electronic devices that seemingly power and organize every aspect of your daily life. And unless you have the patience of a saint, you’ve probably found yourself screaming at the terrible tangle of cords on a regular basis.
So, the European Union’s (EU) recent move to standardize the charging cable used for all small- and medium-sized electronic devices could bring a smile to your face. Now a group of U.S. lawmakers in D.C. is pondering a similar move, which could cause that smile to erupt into a stateside cheer. It’s not clear yet if such a move would enjoy bipartisan support.
The EU’s agreement to make USB-C the common standard is set to take effect in 2024 – pending EU’s Parliament and Council formal approval, giving manufacturers two years to adapt. An array of devices, including cell phones, tablets, e-readers, earbuds, headphones, headsets, digital cameras, hand-held videogames and portable speakers will be impacted. The rule also includes laptops, although manufacturers of those will have 40 months to comply.
While the EU’s measure could make things simpler for consumers, it could be quite tricky for electronics designers and manufacturers.
Even if the U.S. doesn’t enact similar legislation, this could impact what consumers see here. Many manufacturers complying with the EU standard would likely adopt the standard globally rather than manufacture multiple types of cables for customers in different parts of the world.
It’s almost certain the EU’s measure will alter some companies’ plans and create additional expenses for manufacturers. And there are other potential negative impacts.
The change would mean Apple’s iPhone, which uses a propriety Lightning connector, would have to switch to USB-C. The company told Reuters last year that forcing USB-C connectors on its devices would “stifle innovation.” Apple also has argued the USB-C standard would add to electronic waste by making its current Lightning cables obsolete.
While Kevin Brinegar, Indiana Chamber president and CEO, acknowledges government standards on things like electrical outlets are sometimes called for, he adds there is a definite downside.
“If you impose them suddenly, they can be a real hardship for businesses. You can literally put a company out of business,” Brinegar says. “You are restricting free enterprise and commerce, and that is something the Chamber opposes.”
While the charging cable issue seems in some ways like relatively small potatoes in terms of legislative priorities, it’s no doubt a big deal – and point of frustration – for consumers.
Brinegar understands that frustration.
“I have been frustrated every time Apple comes out with a new product, and you have to buy a new charger,” he acknowledges. “And those chargers never seem to be compatible with anything else. It seems to be a ploy to increase sales. Apple has enough market power they can do that.”
Most agree the charger situation has gotten a little out of control, which EU officials say has led to much waste.
The EU throws away 11,000 tons of chargers each year, many unused, according to Bloomberg. At the same time, European consumers spend around 2.4 billion euros ($2.8 billion) on standalone chargers not included with devices.
When the EU started weighing in on this issue a decade ago, there were more than 30 different types of phone charging cables alone. The EU said it has reduced the number to three. Soon, it will be down to one.
“With the issues of consumer convenience and waste, there’s a reasonable argument to be made for putting a rule like this into place. That gives me comfort that it doesn’t seem like a purely political play,” says Jeff Prince, chairperson and professor of business economics and public policy at Indiana University, co-director of the Kelley Institute for Business Analytics and the Harold A. Poling Chair of Strategic Management.
“But if you’re going to look at this in a cynical way, this is a way to take a chip out of Apple’s market share,” adds Prince, who recently served as chief economist at the Federal Communications Commission. “So, there’s an economic argument – and even an environmental argument – for this rule, but there’s also a political one. There are some who think that Apple has simply gotten too big and has too much power.”
Prince notes that there’s an argument for letting industry leaders and market forces sort this out as happened when VHS and Beta were dueling video recorder formats or, more recently, when Blu-ray and HD DVD formats fought for supremacy. The behemoth involved in both of those wars was Sony. The current wi-fi standard also was worked out by private market forces, led by Institute of Electrical and Electronics Engineers, a professional association.
Prince says he can see firms slowing research and development initiatives in the face of such government mandates, and he questions what will happen when an improvement on the USB-C charger emerges.
“In general, I would expect private companies or coalitions to move more quickly on their own rather than having to go to the government to ask them to update a standard,” Prince remarks. “This isn’t a cut-and-dried case. There are clear pros and cons, costs and benefits, and those things must be considered carefully.”
