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I understand better now: just as the EU cannot impose democracy, the rule of law, the abolition of the death penalty on countries outside its borders, it cannot impose business regulations on companies operating outside its borders (even if they are based within Europe).
Still, in order to be eligible for subsidies, the EU must make it a condition for European companies (and their overseas subsidiaries and partners) to follow the same advertising and marketing regulations that they are bound to within Europe. Otherwise, I feel such inconsistency does undermine the "ethical obligation" supposedly behind these regulations to protect consumers (unless we admit that people outside the EU are not worth protecting, too). A language is a dialect with an army and navy.
it cannot impose business regulations on companies operating outside its borders (even if they are based within Europe).
No: when they are not based within Europe.
Do you know of any country (since, in this case, EU legislation must be transposed into each member state's legislation, it's the countries that have sovereignty) that can legislate on business activities in another sovereign state?
Yes, of course the EU can bring pressure to bear in other ways. And should. But, when a major trading area improves regulation within its borders, that looks to me like progress, not an ethically dubious position re the rest of the world. When locusts move on, they leave nothing behind
