The Brussels Effect in cybersecurity: how European regulations are changing global standards

1️⃣ What is the Brussels Effect?

The Brussels effect is a phenomenon where the regulatory policy of the European Union becomes a de facto global standard. Due to the EU's large internal market, companies wishing to operate in Europe are forced to adapt to local requirements. This often results in the same standards being implemented around the world, even in countries that do not have similar regulations.

In the field of cybersecurity, the Brussels Effect is particularly noticeable. The introduction of regulations such as GDPR, NIS2 and DORA is forcing companies to review their data protection, incident management and financial cyber resilience strategies.

2️⃣ Key EU cybersecurity regulations

The EU has introduced a number of regulations that have a significant impact on global cybersecurity:

GDPR (General Data Protection Regulation)

Adopted in 2016, effective from 2018.

The main EU law on personal data protection. Its requirements for consent to data processing, the right to be forgotten, and severe fines for violations have become a model for similar laws in Brazil (LGPD), California (CCPA), and other countries.

NIS2 (Network and Information Security Directive 2)

Entered into force in 2023, implementation by October 2024.

An expanded cybersecurity directive for critical industries (energy, transport, healthcare, etc.). It sets strict requirements for cyber resilience and mandatory incident reporting.

DORA (Digital Operational Resilience Act)

Adopted in 2022, effective from 2025.

Focuses on the financial sector, requiring banks, insurance companies and fintechs to have comprehensive cyber resilience strategies.

All these acts have one common consequence: even companies outside the EU have to adapt if they interact with the European market.

3️⃣ Why do non-EU companies adapt to European standards?

Even if countries do not have similar legislation, businesses often voluntarily adopt European standards. This is due to three key factors:

Market access - companies that want to operate in the EU must comply with its requirements, and it is unprofitable to change standards only for certain markets.

Cost-effectiveness - it is easier to implement a single global security policy than to maintain different systems in accordance with local laws.

Reputational risks - compliance with European standards is perceived as a sign of responsible business.

Example: Apple and Google have adapted their privacy policies to comply with the GDPR, despite the fact that their main market is the US.

4️⃣ Examples of the impact of the Brussels Effect in the field of cybersecurity

🔷 GDPR and global privacy policies:

Many companies, including Facebook and Microsoft , have revised their data processing policies even for users outside the EU.

🔷 NIS2 and critical infrastructure:

Countries outside the EU, such as the UK and Canada, are reviewing their laws on critical infrastructure cyber resilience, focusing on NIS2.

🔷 DORA and the international financial sector:

US banks are implementing similar cyber resilience testing and risk management requirements to match those of their European counterparts.

5️⃣ Criticisms and challenges of the Brussels Effect

Despite the positive impact, there is also criticism of the expansion of European cyber regulation:

🔷 Barriers for small businesses.

Compliance with the GDPR or NIS2 requires significant resources, which can be difficult for small businesses.

🔷 Risk of overregulation.

Overly stringent requirements can limit innovation, especially in fast-growing technology areas such as artificial intelligence.

🔷 Conflict with other regulations.

For example, the GDPR may conflict with US national security laws (e.g., the CLOUD Act)

6️⃣ Future outlook: How will the Brussels Effect shape global cybersecurity?

The EU is expected to remain a leading player in cyber regulation, and the Brussels Effect is expected to grow.

Possible trends:

🔷 Creation of global standards.

International agreements may emerge to harmonise cyber regulations in different countries.

🔷 Expanding the scope of regulation.

New acts may cover AI, the Internet of Things (IoT), and quantum security.

🔷 Emergence of alternative centres of influence.

China and the United States may start implementing their own regulations that will compete with European ones.

Conclusions.

The Brussels effect in cybersecurity is already changing global standards, forcing companies to adapt to European rules. This increases the level of data security, but can also create barriers to business and innovation. In the coming years, we should expect an even greater role for the EU in shaping international cyber policy.

The main question is whether the world will be able to find a balance between regulation and technological progress.