The Brussels Effect

This Article examines the unprecedented and deeply underestimated global power that the EU is exercising through its legal institutions and standards, and how it successfully exports that influence to the rest of the world. Without the need to use international institutions or seek other nations\u27 cooperation, the EU has a strong and growing ability to promulgate regulations that become entrenched in the legal frameworks of developed and developing markets alike, leading to a notable Europeanization of many important aspects of global commerce. The Article identifies the precise conditions for and the specific mechanism through which this externalization of EU\u27s standards unfolds. Enhanced understanding of these conditions and this mechanism helps explain why the EU is currently the only jurisdiction that can wield unilateral influence across a number of areas of law – ranging from antitrust and privacy to health and environmental regulation – and why the markets, other states, and international institutions can do little to constrain Europe\u27s global regulatory power