The regulatory power of the EU
The EU has carefully built a strong regulatory framework over the past six decades, through which its institutions have gradually gained significant influence. This is particularly evident in sectors such as data privacy, artificial intelligence and the operation of digital markets. The European Commission, supported by a highly capable bureaucracy, has been at the forefront of these initiatives, striving for a regulatory landscape that emphasizes fairness, transparency and individual rights.
Impact on global standards
Because of the economic and strategic importance of the EU market, large (tech) companies are forced to align their operations with European standards and often adopt these practices globally. This de facto influence is complemented by the legal adoption of similar regulations by other countries, demonstrating the EU's far-reaching impact on global digital policymaking.
Challenges and opportunities
Despite its considerable influence, the EU faces challenges, including attracting tech talent and competing with tech hubs such as the US. In addition, increasing lobbying efforts by foreign tech companies show both the challenges and the strategic importance of involvement in EU policymaking.
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Understanding and engaging with EU regulations is essential for any technology company operating globally. If your organization needs to navigate this regulatory environment or want to influence policy discussions, contact Castro EU. We offer expert advice and advocacy to ensure your interests are effectively represented in the changing digital landscape.
For those interested in learning more about the Brussels Effect, also check out Anu Bradford's insightful publication The Brussels Effect: How the European Union Rules the World (Oxford University Press, 2020).