It is set to become easier to register for a '.eu' website domain.
MEPs have said they want to encourage its use by businesses.
The domain is the eighth largest domain on the internet and had more than 3.8 million registrations in 2017.
The European Parliament adopted new rules on Thursday to "meet the needs of an ever-changing digital environment".
It approved the reforms with 568 votes to 53, and 25 abstentions.
The new rules give a more flexible regulatory environment, to take into account the rapid evolution of the market since the first '.eu' domain was used 13 years ago.
The new rules simplify the existing legal framework, and enable European/European Economic Area citizens to register for a '.eu' domain outside of the EU - regardless of their country of residence.
In a statement, the parliament said: "The goal of the new regulation is to relax the current eligibility criteria for registration of the .eu domain so that the benefits reach as many people, organisations, and companies as possible, especially young people, small and medium-sized enterprises and non-governmental organisations."
But it added that a domain name can be blocked if it is considered to be defamatory, racist or contrary to public policy or public security.
Fredrick Federley is an MEP in charge of steering the new rules through parliament.
He said: "I believe the domain name can support the digital single market by enhancing an online European identity and encouraging online cross-border activities.
"With this decision we have strengthened the criteria by which a website can be blocked, adding reference to rule of law safeguards".
EU citizens, regardless of where they live, can request a '.eu' domain.
Non-EU citizens living in the EU or in a country that is a member of the European Economic Area (EEA), as well as companies based in the EU, can also have one.
People with a '.eu' domain have their rights as consumers and individuals protected by European rules and standards.
A domain name can also contain characters from any official EU language.
