European Tech Policy Influence Seen Growing Amid US Shift
As the U.S. decreases direct aid and shifts its foreign policy posture, European nations have begun stepping up to fill leadership roles, a dynamic that extends to technology policy and standards enforcement. Analysis from a Lawfare podcast suggests this transatlantic realignment is making European standards bodies and regulatory oversight increasingly central to multilateral technology projects and export compliance.
- The "Brussels Effect" describes the European Union's unilateral ability to shape global markets by setting regulations in areas like data privacy and environmental protection that become international standards. Companies often adopt these EU rules across their global operations to streamline production and access the EU's large consumer market. - A key figure driving the EU's digital policy is Margrethe Vestager, the Executive Vice-President for a Europe Fit for the Digital Age. She has spearheaded major regulations like the Digital Services Act (DSA) and the Digital Markets Act (DMA) and led high-profile antitrust cases against major tech companies. - The EU's AI Act is the world's first comprehensive legal framework for artificial intelligence and is expected to influence global AI governance. It establishes a risk-based approach, banning certain AI applications and imposing strict requirements on high-risk systems, with harmonized standards being developed by European Standards Organizations (ESOs) like CEN, CENELEC, and ETSI to support its implementation. - The U.S. and EU are coordinating on technology and trade policy through the Trade and Technology Council (TTC), established in 2021. The TTC focuses on areas such as aligning technology standards, especially for AI and 6G, securing supply chains for semiconductors, and coordinating on export controls. - The European Telecommunications Standards Institute (ETSI) is playing a central role in the development of 6G technology. It has signed a Memorandum of Understanding with the 6G Smart Networks and Services Industry Association (6G-IA) to translate European research into global standards and is leading initiatives on integrated sensing and communication use cases. - China has voiced opposition to certain EU tech policies, viewing them as discriminatory and protectionist. This includes concerns over the forced transfer of technology and the exclusion of Chinese suppliers from critical sectors, which has led to a decrease in the market share for European telecom companies like Ericsson and Nokia in China. - The EU's Digital Services Act (DSA) has a global reach, with the potential for fines up to 6% of a company's global turnover for non-compliance. This has led many global platforms to apply DSA standards, such as increased transparency in content moderation, across all their markets, though some critics worry this imposes EU content rules on other regions. - There is an ongoing dispute at the World Trade Organization (WTO) between the EU and China concerning standard-essential patents (SEPs). The EU alleges that Chinese courts are unfairly setting global royalty rates for European high-tech patents, giving Chinese manufacturers an advantage.
