> I think most successful European entrepreneurs will just end up starting companies in the US instead.
If these companies end up banned in Europe, that's not really a problem from Europe's PoV. Europe may end up deciding that US companies not coming is a problem in itself, but that is already the case imo.
Honestly, if this policy is actually enforced, it's very hard to imagine how the landscape would shift. Maybe Europe would be brought to its heels, and be forced to remove the law. On the other hand, maybe the US would be forced to renounce their cloud act, which is a large part of Europe's privacy issues with US companies. A third path could be companies reverse-incorporating in some place that would let them keep in business.
If these companies end up banned in Europe, that's not really a problem from Europe's PoV. Europe may end up deciding that US companies not coming is a problem in itself, but that is already the case imo.
Honestly, if this policy is actually enforced, it's very hard to imagine how the landscape would shift. Maybe Europe would be brought to its heels, and be forced to remove the law. On the other hand, maybe the US would be forced to renounce their cloud act, which is a large part of Europe's privacy issues with US companies. A third path could be companies reverse-incorporating in some place that would let them keep in business.
It's a bit hard to predict honestly.