[dheera]

Ethics and morality aside, I'm curious what allows the EU to "enforce" laws on a US company. Let's say Google and Microsoft don't register entities in the EU. Can they do anything?

Can Microsoft and other US-based technology companies theoretically just keep doing their own thing, tell the EU government "to hell with it, we're abiding by US laws, you have a choice to stop importing Windows and invent your own OS if you don't like us"?

[jfuhrman]

Sure they can, but it's a huge market almost on par with the US and it opens them up elsewhere in the world to competition emanating from the void they leave in the EU, i.e alternate OSes and search engines.

[dheera]

I get this completely, although let's say Microsoft just ignored their requests for compliance. Would the EU seriously dare to ban Windows? I feel like they'd get outrage from their own locals and topple their own economy if they banned Windows, so they probably wouldn't. Therefore, does Microsoft need to care? Could they just sit around in Redmond and keep developing as long as the US doesn't care?

As for websites, some countries could just block a US website that doesn't comply with local regulations (e.g. China, Iran, Myanmar, et al.) and this has happened numerous times. But the EU? Having already reached a free speech society? Censoring a US website on the grounds of non-compliance with arbitrary one-sided demands would be at odds with their own established bill of rights.

Google said "to hell with it" to China and got blocked. But what if they did the same to the EU? I don't think the EU could block a website without causing serious upheaval from their own citizens.

[fnord123]

They would fine Microsoft. If Microsoft didn't pay they would have their assets seized. Or their credit rating damaged. Their credit rating drop could then put them as junk status and thus mutual funds would have to divest from Microsoft. Microsoft share price would be negatively affected.

NB: I am not a lawyer or economist.

[M2Ys4U]

The EU is the world's largest economy, do you really want to shut your entire business out of that market?

What then happens if a competitor is established to take your former position in the European market - chances are they're not just going to stay in the EU. They're going to eat your lunch elsewhere too.

[xxxyy]

Similar argument can be applied to China. This is precisely why Zuckerberg is learning Mandarin and networking there.

[dheera]

How would the EU shut you out? Would the EU actually dare to begin censorship?

[xxxyy]

No, of course not by censorship. Through: fines for monopolist practices (happened to Microsoft), general smear campaign (happens to Amazon in Germany over working conditions), poking with a stick (the "right to be forgotten"), or just plain old taxes (the new "internet tax" is a current topic in the EU). There is always a way if you are determined enough. Politics.

[M2Ys4U]

It's not about censorship. It's about doing business.