University of Georgia School of Law Professor Assaf Harpaz recently reviewed “Regulatory Mismatches in the United States and the European Union”, a paper by Michael S. Knoll, Ruth Mason, and Wolfgang Schön.

Below is a summary of the article:

This article explores regulatory mismatches, differences in regulations between different states, in the United States and the European Union, focusing on their differing approaches to market integration and regulatory diversity. The US emphasizes state autonomy, allowing regulatory pluralism to foster local experimentation and reflect diverse democratic preferences.

The Supreme Court’s handling of mismatches through balancing tests in decisions like Pike v. Bruce Church (1970), is limited and inconsistent, with a preference for leaving unresolved issues to Congress. In contrast, the EU prioritizes legislative and, to a lesser extent, judicial, harmonization and mutual recognition, with the Court of Justice rigorously reviewing member-state regulations for necessity, proportionality, and compatibility with fundamental market freedoms. Recent trends toward subsidiarity, however, signal a growing respect for national diversity. Both unions weigh state and market interests, but the United States tends to see regulatory diversity as a federalism benefit, whereas the EU views harmonization as essential to its integration goals.

Harpaz joined the University of Georgia School of Law as an assistant professor in summer 2024 and teaches classes in federal income tax and business taxation. Harpaz’s scholarly focus lies in international taxation, with an emphasis on the intersection of taxation and digitalization. He explores the tax challenges of the digital economy and the ways to adapt 20th-century tax laws to modern business practices.