Regulation (EU) 2024/1781 marks a significant development in the European Union’s commitment to sustainable product governance. This article analyses its impact on market competitiveness, legal coherence, and innovation, with particular attention to small and medium-sized enterprises. The discussion explores the intersection between ecodesign criteria and sector-specific technical standards, highlighting the regulatory complexities that emerge from overlapping legal frameworks. Methodologically, the research adopts a multidisciplinary perspective, combining doctrinal analysis, comparative legal review, and economic policy assessment. Attention is given to the interaction between EU legislation and global supply chains, assessing the capacity of the Regulation to address disparities in regulatory environments. The article identifies areas where implementation gaps and compliance burdens may affect the achievement of sustainability objectives. The paper concludes with policy recommendations focused on differentiated regulatory pathways and adaptive governance structures to promote effective, inclusive, and competitive green transitions within the EU’s internal market.