The caps was a problem yes. Not just littering, but also in sorting for recycling, where they'd often end up in the wrong place.

It obviously depends on where and how it's done, but the thing I've heard is that due to (the lack of) weight and size the bottle caps would end up in the paper badges, which would ruin the paper from being recycled. It's better if it follows the bottle. PET bottles (including caps) are shredded, washed and used for new bottles.

Same thing happened to the pull tabs on aluminium cans. Those used to be separate too.

That’s an EU regulation, not a corporate measure. And it has drastically decreased the amount of littered bottle caps, so a good thing.

you should only be allowed to buy cigarettes if you can account for all your ciggy butts or pick-up an equal amount.

Those float in the sea, we don't want that iiuc. Is a different plastic too, way more valuable from a recycling perspective (in Argentina hospitals used to collect caps to melt and make toys for childrens)