The Brussels Effect How EU and UK Tech Policy Impacts Americans and American Companies
Aug 24, 2023
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Explore the impact of EU and UK tech policies on American companies, including issues of speech, privacy, and competition. Learn about regulations on illegal content, the implications for startups, the news media bargaining code in Australia, EU regulations on charging ports, and the concerns surrounding excessive regulations in the tech industry.
European regulations may impact American startups, forcing them to consider compliance costs and standardized platform rules.
The Brussels Effect may limit the permissionless approach that has fueled US innovation, shifting the focus of leaders from building global services to navigating regulations.
Deep dives
EU and UK tech policies impacting American companies
Recent European policies like the Digital Markets Act, the Digital Services Act, and GDPR have changed the tech policy debate. American companies may face compliance issues with European laws, influencing US tech policy. European regulations like the Digital Services Act and the Digital Markets Act aim to regulate online safety and impose interoperability requirements. The EU's approach to speech norms differs from the US and UN, allowing for broader definitions of hate speech and limits on freedom of expression. EU regulations may impact American startups, forcing them to consider compliance costs and standardized platform rules.
UK's tech policy post-Brexit
Post-Brexit, the UK is in a unique regulatory situation. While the UK government has shown supportive rhetoric regarding technology, legislation and regulations being proposed may take the UK in the wrong direction. The online safety bill and digital markets legislation could have significant consequences for American companies and users of popular internet platforms. The legislation could hinder innovation, hamper robust markets, and increase regulatory burdens on companies. The UK's actions may influence other countries to implement similar policies, further impacting the global technology sector.
Enlisting American tech companies to enforce European speech norms
American tech companies have been enlisted to enforce European hate speech norms through voluntary codes of conduct and national laws. Examples include the EU's voluntary code of conduct on countering illegal hate speech and Germany's NetzDG law. These efforts raise concerns about transparency, the role of private companies in enforcing legal speech regulations, and departure from international standards on freedom of expression. Such developments may incentivize US companies to adopt lower speech protection standards globally, impacting individuals' freedom of expression worldwide.
Implications and concerns for American consumers, innovators, and policymakers
European and UK tech policies could negatively impact American companies, startups, and policymakers. The Brussels Effect, where European regulations become global standards, may limit the permissionless approach that has fueled US innovation. Policymakers and innovators should be aware of the complex and bureaucratic nature of emerging global regulations. They should consider the unintended consequences, such as stifling innovation and shifting the focus of leaders from building global services to navigating regulations. Companies should adhere to global human rights standards, resist undue regulatory pressure, and maintain a focus on global opportunities while navigating regional regulatory landscapes.
The United States has been a leader in the innovative technology sector. Its light touch policy approach has been key to allowing innovation to flourish and brought benefits to consumers both domestically and internationally.
Increasingly, however, the highly regulatory approach seen in the EU and UK is both formally and informally impacting the approach these leading tech companies must take on issues including speech, privacy, and competition.
How should we think about the “Brussels Effect” in technology, and what does this mean for American policy, American companies, and American citizens?