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When It Comes to Markets, Europe Is No Fading Power
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When It Comes to Markets, Europe Is No Fading Power
by Anu Bradford
That Europe’s best days are over has become a common refrain. Journalists, analysts, and even world leaders observe that “the Continent’s grand unity project is failing, and its global influence is fading”; lament “the coming erosion of the European Union”; and explain “why Europe no longer matters.”
An Avaaz activist attends an anti-Facebook demonstration with cardboard cutouts of Facebook chief Mark Zuckerberg, on which is written «Fix Fakebook», in front of the Berlaymont, the EU Commission headquarter on May 2018 ,22 in Brussels, Belgium. (Getty)
China has arisen as a major economic power. Russia is asserting its will across the globe. Citizens of democratic countries have responded to the lure of economic populism. And with the United States in retreat from multilateralism, and the United Kingdom exiting the EU, even the union’s most ardent supporters have grown understandably convinced of the inevitability of its decline.
And yet an important dimension of the EU’s power remains unaffected by any of these trends, and that is the EU’s capacity to set high domestic standards, remaking global regulations in the process. EU regulations influence which products are built and how business is conducted, not just in Europe but everywhere in the world. Because it plays this role, the EU can transform global markets in multiple sectors—something it has done in setting the standards for the protection of privacy, for example. So long as the EU commands this essential regulatory authority, it will remain a major force in the global economy.
THE BRUSSELS EFFECT
Europe’s regulatory power reaches across countries and industries. EU regulations determine the default privacy settings on the iPhone. They stipulate how timber is harvested in Indonesia, how honey is produced in Brazil, and what pesticides cocoa farmers use in Cameroon. They decide what equipment is installed in dairy factories in China and how much privacy is afforded to Internet users in Latin America. These are but a few examples of the EU’s power unilaterally to regulate global markets, which is known as the “Brussels Effect.”
The Brussels Effect suggests that the bigger and more affluent the consumer market, the more likely that exporting companies will comply with its standards. Europe’s combination of size and affluence makes its consumer market one that few companies would choose to forgo. With a population of 516 million and GDP per capita of 40,900$, the EU has a larger market than the United States and a more affluent one than China. It is also the world’s second-largest importer of goods. As a result, for many companies, the benefits of market access outweigh the cost of adjusting to the EU’s stringent standards.
But market size alone does not explain Europe’s ability to project its regulatory preferences beyond its borders. The EU has also built an extensive institutional architecture and harnessed the political will to enforce its regulations. Brussels has a far-reaching sanctioning authority and the ability to bar products or services from the EU market. The prospect of such exclusion effectively deters violations and induces compliance with EU regulations.
As a result of the Brussels Effect, the EU does not need to impose its standards coercively on anyone—market forces alone are often sufficient to convert the EU standard into the global standard as companies voluntarily extend the EU rule to govern their worldwide operations.
DATA DEMANDS
Europe has exerted its regulatory power to particular effect with regard to data privacy. In 2016, the EU enacted the General Data Protection Regulation (GDPR), which limits the quantity of personal data that can be collected and the purposes for which that data may be used; it also requires that any entity—private or governmental—that collects and processes such data must ensure its integrity, security, and accuracy. The GDPR stipulates a “right to be forgotten,” by which people retain the right to ask for certain personal data to be erased. The law’s “privacy by design” provision requires manufacturers to design their products and services with GDPR obligations in mind. Companies that fail to comply with the GDPR
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face fines of up to 20 million euros or up to four percent of the company’s total worldwide revenue from the preceding financial year.
Adopting the GDPR was a contentious process. The United States government and leading U.S. companies—including Cisco, Intel, Microsoft, and NBCUniversal—opposed the regulation on the grounds that it would hinder national security cooperation and kill innovation and research. The intensity of U.S. criticism was consistent with a profound divergence of views between the EU and the United States over the ability of markets to self-govern and the desirability of government intervention. U.S. data privacy laws are considerably weaker than those in the EU, and they are mostly restricted to the public sector, health care, and banking. The private sector in the United States is largely left to devise and enforce its own data privacy restrictions.
The politics underlying the international privacy debates have recently shifted in the EU’s favor, thanks in part to the revelation that a British political consulting firm, Cambridge Analytica, acquired private data obtained from Facebook users. These data were used in the 2016 U.S. presidential election and the 2016 Brexit referendum. But the ultimate determinant of the
GDPR’s fate will not be politics so much as the Brussels Effect.
The EU is an important market for many datadriven businesses, including Facebook and Google. Facebook has more than 250 million users in Europe, and they produce 25 percent of Facebook’s global revenue. Google’s share of the search market is more than 90 percent in most EU member states, which exceeds its 67 to 75 percent market share in the United States. Abandoning the EU market is not even remotely a commercially viable option for them. These digital companies will be hard-pressed to circumvent the GDPR, because the regulation protects European data regardless of where the data are processed.
Companies may wish to divide products and services between markets in an attempt to circumvent the Brussels Effect. Instead of adhering to a uniform standard in their global conduct, corporations could customize their practices to suit different regulatory markets.
32 14/02/20 Facebook chief Mark Zuckerberg (L) is welcome by the President of the European Parliament Antonio Tajani (R) prior to their meeting on May 2018 ,22 in Brussels, Belgium. (Getty)
But doing so would be difficult and costly, making this tactic highly unlikely. Many digital companies store their data in overseas servers and must move them across borders. Since privacy regulations can differ across jurisdictions, and devising multiple compliance regimes is costly, business logic compels these digital companies to streamline: they apply the most stringent standards across the board so as to retain the ability to conduct business everywhere.
Rather than divide their services or forgo the EU market entirely, several U.S. companies, including Google, Facebook, Microsoft, Netflix, Uber, and Airbnb, have amended their global privacy practices to fit the EU’s standards. And as corporations have bowed to the Brussels Effect, governments have followed suit. To date, nearly 120 countries have adopted privacy laws, most of them resembling the EU data protection regime. The United States may not be able to hold out in perpetuity. If Washington concedes that the time has come for a robust federal data protection law, the Brussels Effect will have reached its last frontier.
FEAR NO FALTERING EUROPE
In a world of growing disenchantment with international cooperation, the Brussels Effect has produced impressive compliance, if not consensus, on critical cross-border matters such as data privacy. But the headwinds are strong. A rising China, backlash to globalization, and a decline in international cooperation are just a few of the forces that countervail Europe’s regulatory standard setting.
Nonetheless, there is reason to think that the Brussels Effect will prevail. Though China may soon possess the largest consumer market, its projected income per capita in 2050 will be 17,372$, far below that of EU member states. Less wealthy consumers have a lower appetite for regulations that might compromise growth and economic development. And since importers set standards by regulating market access and China’s economy relies primarily on exports, a “Beijing Effect” is unlikely to replace the Brussels Effect anytime soon.
The fear of shrinking multilateralism is not a cause for alarm either. Countries may retreat from security and trade agreements or even leave the EU. But these antiglobalist stances will not undermine the global regulations that the EU produces. Take Brexit, for example: roughly half of British exports are destined for the EU, meaning that the United Kingdom will continue to need access to the EU’s large consumer market long after Brexit. While British companies could, in principle, adopt one set of standards for Europe and multiple other sets of standards for the rest of the world post-Brexit, the Brussels Effect makes this unlikely. The Brussels Effect therefore mitigates the decline of globalization and, if anything, fills the void left by waning multilateralism. The Brussels Effect will likely persist, extending the EU’s regulatory hegemony into the foreseeable future, thereby challenging the notion of Europe’s inevitable wholesale decline.
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Dr. Simon Ourian: Meet the Kardashian’s Cosmetic Dermatologist Who Became Instagram’s King of Beauty
The Man Behind Some of the Most Famous Faces in the World Speaks to Majalla about the “Kardashian-Jenner Effect”, Arab Beauty Ideals and What Self-Love Really Mans
by Yasmine El-Geressi
What do Kim Kardashian-West, Kylie Jenner, Lady Gaga, Salma Hayek, Victoria’s Secret models and Brad Pitt all have in common? Well, they all get their beauty treatments done by none other than Dr Simon Ourian. A sculptor by vocation, the Beverly-Hills based dermatologist is almost as famous as his fiercely loyal celebrity clients. With over 3.5 million followers on Instagram, he is the most followed cosmetic doctor on social media and is sought out by patients throughout the US and the world. From his Epione Beverly Hills clinic, Dr Ourian has been shaping the world of cosmetic surgery for over two decades through his pioneering procedures, products and philosophy regarding beauty. Despite his hectic schedule and long waiting list that includes the who›s who of the world, Dr Ourian kindly made the time for this special interview.
Q. What was your inspiration to get into this career and how would you describe your overall philosophy on beauty and cosmetic surgery?
My background was in art, aesthetics, and sculpting, so I had a very keen appreciation for beauty before I got into this field. Over the years I have fine-tuned my skills resting on my background and foundation of human anatomy, classic science, and art of beauty. Beauty is universal and the universal language of beauty is something I love and appreciate.
Q. You have become the biggest cosmetic dermatologist on Instagram. To what do you attribute your success?
I have been doing this for a long time and I love what I do. I think if you absolutely love what you do it comes through and everyone can see that. All my life I have been living and breathing about beauty. I started this when there were not too many doctors doing this in the world and I stayed true to my beliefs of enhancing the beauty of every woman in my chair and I want to make sure they are happier when they leave my office than when they arrived. I have been lucky that a lot of my clients are very well-known celebrities throughout the world and people have seen their changes on Instagram and they want to know who has helped them achieve these results.
Q. The Kardashians-Jenners, who you have worked very closely with over many years, have had an enormous cultural impact in the last decade and have redefined beauty standards. What in your view is the ‘Kardashian-Jenner effect’?
Dr Simon Ourian with Kim Kardashian-West (Instagram)
option the idea that they do. A lot of women believe that you are either born beautiful or you have to accept what you have. Because beauty is such a powerful tool the secrets of our industry were very jealously guarded. The Kardashians and Jenner’s were amongst the first ones to demystify this and openly share their heavily guarded secrets with people. This has allowed people to see and feel comfortable with the treatments and give people the knowledge that these treatments do exist.
Q. What are the most popular procedures among your celebrity clients?
Most people that come to my practice are interested in facial and body contouring, and skin perfecting. They want these treatments because they have seen that I can achieve very natural results without looking like they had work done, which takes a lot of skill, training, and experience. After 20 years I have developed these particular techniques and very unique technologies that help us achieve these results very easily for my patients. There are still many other reasons people come here. We have a very large center and we take care of all types of procedures with the latest and greatest technologies. If something can be done and the results can be achieved in a natural, effective and safe way, we have a way to have it done at Epione.
A lot of women believe that you are either born beautiful or you have to accept what you have. The Kardashians and Jenner’s were amongst the first ones to demystify this and openly share their heavily guarded secrets with people.
Q. Which country is your largest client source in the Middle East
Saudi Arabia and the UAE are the top two locations in the Middle East where procedures are in the greatest demand, and closely ranking as second would be Qatar.
Q. How would you describe your Arab clients?
They are very specific about what they want to have done. They want their results to be subtle- but they only want the best and that is what they travel so far for. My clients travel from all over the world sometimes. 20 plus hours, to get here so they want to make sure their results are the absolute best.
Q. What and who represents the ideal Arab beauty today and which celebrity face is most referenced amongst your Arab patients?
Kim Kardashian, Haifa Wehbe, and Maya Diab are definitely the most referenced celebrities among my Arab patients.
Q. When a patient comes in from a certain ethnic background,
My Arab clients are informed, sophisticated, and knowledgeable. They are very specific about what they want to have done. They want their results to be subtle- but they only want the best and that is what they travel so far for
can you predict what they’re going to be looking for? Not really, since beauty is very specific and each of us look at beauty in a certain way. I always want to keep an open mind about what people want to have done so I do not form any preconceived notions. I want my patients to tell me exactly what they want to have done and what bothers them/what they want to improve upon. I will make some recommendations but I want to make sure I gave them what they came here for.
Q. Are we moving towards globalization of beauty standards and homogenization of what is considered “beautiful”, and are ethnic features being watered down in the process?
I do not think so. We do not have the techniques or tools to achieve a certain look for everyone even if it was designed. What has been considered to be beautiful for many centuries has not changed. Having clear skin, high cheekbones, nice jawline, beautiful lips, big eyes, etc. these are nothing new. What is different, is that now we can achieve these things by the new technologies and tools that we have. And because of that, people would like to have these features as much as possible. But even if I tried to make two people look the same, I will never be able to, it is just not possible we all have such different features that no two people are going to look the same. My goal is not to homogenize beauty but to make a person look their absolute best, and look like themselves.
Q. Millennials and Gen Zers, or what’s largely been dubbed the “selfie generation” and are often described as narcissistic. Have you noticed a change in the psychological mind-set of
Dr Simon Ourian
Dr Simon Ourian
patients over the years? Do you think social media does more harm than good when it comes to self-love?
No, I think being alive means that you want to take care of yourself. If anything, there has been a very severe shortage of self-love amongst a lot of woman growing up. They are encouraged to sacrifice a lot and give up a lot. It is nice to see in this new generation that taking care of yourself and being kind to yourself is a priority. I believe that if you love yourself you become more of a loving person and in return you have more love to give to other people. So, taking care of yourself and being more appreciative of what you have is nothing but positive. Of course, everything can be taken to extremes but I do not see that in my patients. I believe that when they come to see me it is one of their first steps they are taking for self-love. It allows you to love the people around you and yourself.
Q. Body positivity is on the rise and has expanded societal definitions of beautiful, but it seems that little has really changed in our self-perception as the demand for surgical enhancement is continuing to explode around the world. Do you believe that both these Instagram-born responses to societal messages and standards regarding one’s appearance can coexist?
Yes, body positivity means that appreciate what you have but enhancement means that you improve upon it. They are not mutually exclusive. For example, you can appreciate a nice car you have, and take care of it every day, that doesn’t mean you hate your car, but it means you love it even more. If you
There has been a very severe shortage of self-love amongst a lot of woman growing up. It is nice to see in this new generation that taking care of yourself and being kind to yourself is a priority
appreciate your body the way it is and you want to maintain it in a better way it shows that you have even more love for your body and your own appearance. Vanity is the essence of living. If you wake up every morning and put your best face forward, work your hardest it will allow you to move forward and up in life. To me that is the essence of life, that you keep improving and moving forward.
Q. Tell us the craziest request you’ve ever had from a client?
The craziest request I’ve had from a client is when the client requests to look exactly like somebody else. Luckily this only happens about 2-1 times a year. Usually, they request to look like a celebrity. I think this is the craziest request because it is not possible. I feel that these patients are not emotionally ready to make a choice on a cosmetic enhancement so I politely refuse to do any treatment for them.
A Weekly Political News Magazine
Issue 1787- February- 14/02/2020
Zhou Qunfei: The Entrepreneur Who’s Behind the Touch Screen Technology We Use Everyday
