Gautam Kamath and Chloe Teevan argue that to remain relevant, the EU must work with partners like India, Brazil and Japan to co-create open protocols and standards, transforming the ‘Brussels effect’ into a multinational ‘third way’ for digital governance.
Summary
This briefing note argues that the ‘Brussels effect’ is not dead but is evolving. Shifting geopolitics requires a change in the European Union’s approach – moving from regulatory dominance to one of partnership with other global actors.
The EU’s move to simplify its vast digital rulebook, exemplified by the EU’s recent ‘digital omnibus’ simplification agenda, has been met with internal criticism as a potential rollback of digital rights. Meanwhile, proponents see it as a necessary step to reduce complexity and foster investment. Internationally, a pushback against the unidirectional force of the ‘Brussels effect’ was already apparent long before the so-called ‘digital omnibus.’ A growing number of countries – like India, Brazil, and Japan – are developing their own distinct digital regulatory frameworks. India has adopted a ‘techno-legal’ approach through its Data Empowerment and Protection Architecture (DEPA), and its focus on rolling out ‘Digital Public Infrastructure’ (DPIs) across different parts of the economy – payments, identity, e-commerce, energy grids, etc.
To remain relevant, the EU must also embrace this ‘techno-legal’ approach, as exemplified by the planned EU Digital Identity (EUDI) Wallet. It should also work with partners such as India, Brazil, and Japan to co-create open protocols and standards, transforming the ‘Brussels effect’ into a multinational ‘third way’ for digital governance.
About the author:
Gautam Kamath is an independent policy consultant based in Brussels and an Associate in ECDPM’s digital economy and governance team.
Chloe Teevan is the head of ECDPM’s digital economy and governance team.