Brussels effect

The Berlaymont building in Brussels, the headquarters of the European Commission

The Brussels effect is the process of unilateral regulatory globalisation caused by the European Union who de facto (but not necessarily de jure) externalizes its laws outside its borders through market mechanisms. Through the Brussels effect, regulated entities, especially corporations, end up complying with EU laws even outside the EU for a variety of reasons. The effect is named after the city of Brussels, the de facto capital of the European Union.