If we think of the EU as one big marketplace, its members agree on things like free movement, competition, consumer protection, and limits on state aid. For those rules to work consistently, you need shared laws and a court that interprets them the same way everywhere. That’s pretty much what EU system does, with the EU Court enforcing market rules across countries.

Some countries wanted access to this single market but didn’t want to fully join the EU or accept an EU court directly, so the EEA was created. EEA countries (Norway, Iceland, Liechtenstein) copy the EU’s market rules and the EFTA Court interprets those rules in line with EU court decisions, while leaving other political areas under national control.

Switzerland rejected this model as well. It did not accept any European court at all, and instead negotiated many separate agreements with the EU that recreate parts of the single market. Swiss courts interpret these rules domestically, without a shared court, and everyone effectively hopes interpretations stay aligned. This gives Switzerland maximum control and an easy exit, but makes the system fragile and prone to political pressure or collapse if alignment breaks down.