A doctrine, developed mainly by the American courts in anti-trust cases, asserting jurisdiction over acts of foreign nationals committed abroad but having effects in the American marketplace; an extended form of the objective territorial principle. Source: Irwin Law
The effects doctrine is a principle enabling a forum to assert jurisdiction over parties not present within a state but whose conduct outside the state’s territory affects the local market. The effects doctrine is frequently mistakenly equated with extraterritoriality. However, extraterritoriality is a wider concept. It also includes situations when part of the conduct in question occurred within its territory or when piercing of the corporate veil enables to assert jurisdiction over a foreign parent due to the local presence of a subsidiary. Source: Concurrences Dictionary
You may be wondering about how this may apply to someone outside of the United States of America.
Many jurisdictions, such as those in Canada, the United Kingdom and the European Union enshrine such concepts into their laws as well.
Why wouldn’t they? Monopolistic practices traverse borders.
It isn’t just for anti-trust either (but that is where it evolved from). The acceptance of the concept is gaining speed.
We do live in an international community. The planet Earth. The Internet is not the wild west anymore. The laws are finally catching up too.
So when for example, someone in the United Kingdom starts a transphobic defamation campaign targetting a Canadian.. well…
That just means the Canadian courts can step in. In this case I am applying the concept of the effects doctrine in my argument for having jurisdiction.
Another example:
If my employer was a company in the United States of America, let’s say Ohio.
Would they have to follow Ohio labour law or Ontario labour law?
Well, the concept of the effects doctrine would indictate that Ontario labour law applies. My employer might exist only in Ohio, but working remotely puts it in the jurisdiction of Canadian law because that is where I am.
Nobody likes that ohio rizz.
And while I wouldn’t take Russian or Iranian courts seriously, I’d still investigate and see if my country has any treaties to enforce those foreign judgements.
Don’t just take my word for it, ask a lawyer if a foreign law applies to you. I’m not your paralegal or lawyer.
You can usually talk to one for 30 minutes for free.
This information is for educational and research purposes.