As Europe grapples with an increasingly unpredictable political landscape and strained transatlantic relations, calls for the continent to reduce its dependency on American tech giants have gained momentum. From Microsoft to Meta, Apple to Uber, many of the technologies that power daily life in Europe are American-made. But with tensions on the rise, particularly in the wake of President Donald Trump’s controversial policies, European leaders are intensifying efforts to assert their own tech sovereignty.
The global reliance on US tech companies has been a point of contention, particularly as the EU faces the prospect of further US tariffs and a potential trade war. In response, European officials are pushing for policies that prioritise local firms in public contracts and are looking to develop European versions of popular American services.
Henna Virkkunen, the EU’s tech chief, highlighted the urgency of building up European capacities in key technological sectors such as artificial intelligence (AI), quantum computing, and semiconductors. “We have to build up our own capacities when it comes to technologies,” she stated, underscoring the need for greater European autonomy in these critical areas.
The concerns are rooted in the risk of the US leveraging its digital dominance against Europe, especially as Washington’s tech regulations have already raised tensions with EU laws. EU lawmaker Stephanie Yon-Courtin voiced her concerns over Europe’s dependency on US technologies, pointing to issues such as US restrictions on semiconductor exports. “Relying exclusively on non-European technologies exposes us to strategic and economic risks,” Yon-Courtin noted.
The Data on Europe’s Tech Dependency
The statistics paint a stark picture. Two-thirds of Europe’s cloud market is controlled by American companies like Amazon, Microsoft, and Google, while European cloud providers account for a mere 2%. Additionally, 23% of the EU’s high-tech imports in 2023 came from the US, spanning sectors from aerospace and pharmaceuticals to smartphones and semiconductors.
In response to this imbalance, the EU has emphasised the importance of incentivising “European preferences” in public procurement. Benjamin Revcolevschi, CEO of French cloud provider OVHcloud, welcomed this move, noting that creating a more self-reliant tech ecosystem would be a significant step toward reducing Europe’s reliance on foreign tech. “Incentives to buy European are important,” Revcolevschi said.
The European Central Bank has also joined the call for greater financial independence, with its chief Christine Lagarde advocating for a European alternative to dominant US payment systems like Mastercard, Visa, and PayPal. EU capitals are exploring the creation of a truly European payment system to compete with American and Chinese counterparts.
A Huge Financial Challenge
However, experts acknowledge that achieving tech sovereignty is no small feat. Creating a comprehensive European tech ecosystem, which would include advancements in AI, quantum computing, and other high-tech fields, could cost up to 300 billion euros ($340 billion) by 2035, according to digital policy experts. The US trade group Chamber of Progress estimates that the actual figure may exceed five trillion euros.
Despite these financial hurdles, the EU remains committed to reducing its dependence on foreign technology and ensuring that its industries are not left vulnerable to external economic and geopolitical pressures.
Values at the Heart of the Issue
The debate over tech sovereignty also extends beyond economics to values. Many European leaders argue that the continent’s stringent tech regulations, particularly regarding data protection, reflect a different set of values than those embraced by US tech giants. In response to multiple high-profile data scandals involving US companies, the EU has introduced comprehensive regulations, such as the Digital Markets Act (DMA) and the Digital Services Act (DSA), to safeguard European users’ data.
Bruce Lawson of Norwegian web browser Vivaldi praised these regulations, noting that the DMA has led to a significant increase in European downloads of alternative platforms. “It’s about weaning ourselves off the dependency on infrastructure that has very different values about data protection,” Lawson said.
As Europe continues to pursue its tech sovereignty, it is clear that the continent is not just looking to sever ties with the US, but to create a tech ecosystem that reflects its own values and priorities.
