
A new study by Columbia Law School professor Anu Bradford disputes the belief that strict European Union tech regulations are responsible for the region’s lagging global tech giants. Published in the Northwestern University Law Review, the research argues that factors like fragmented markets, limited access to capital, strict bankruptcy laws, and difficulty attracting global talent play a more significant role in the EU’s tech gap compared to the United States.
Bradford’s analysis suggests that while EU regulations, such as data privacy and antitrust rules, may impose compliance costs, they also foster innovation by building consumer trust. Contrary to popular claims, the study found no strong evidence that these regulations have stifled European tech companies’ ability to innovate and compete on a global scale.
Instead, the study highlights that Europe’s fragmented digital market, underdeveloped capital markets, punitive bankruptcy laws, and limited access to global tech talent are the primary barriers to tech innovation. The research concludes that addressing these structural issues would have a greater impact on improving the EU’s tech sector than rolling back regulations.
The findings could influence ongoing tech regulation debates, both in Europe and the U.S., where policymakers are grappling with balancing innovation and regulation.