Europe Seeks to Break Its US Tech Addiction
AFP/APP
Brussels: With President Donald Trump more unpredictable than ever and transatlantic ties reaching new lows, calls are growing louder for Europe to declare independence from US tech.
From Microsoft to Meta, Apple to Uber, cloud computing to AI, much of the technology used daily by Europeans originates in the United States. While the risks of this dependence were debated even before Trump’s return to power, the urgency to act has significantly intensified.
Europe is now taking concrete steps—favoring European firms in public contracts and developing homegrown alternatives to well-known American platforms. Amid Trump’s imposition of tariffs and European threats to tax US tech giants unless a broader deal is reached, fears of an all-out trade war loom large.
Tech sovereignty has taken center stage in recent weeks. The European Union has unveiled strategies to compete in the global race for artificial intelligence and is exploring the creation of its own payment systems to rival American giants like Mastercard and Visa.
“We have to build up our own capacities when it comes to technologies,” said EU tech chief Henna Virkkunen, highlighting AI, quantum computing, and semiconductors as three critical sectors.
A key concern is that worsening ties could prompt Washington to weaponize its digital dominance. Trump’s administration has already targeted the EU’s tech regulations, prompting fresh calls by industry experts and EU lawmakers to fortify Europe’s digital infrastructure and reduce reliance on a small group of dominant US firms.
“Relying exclusively on non-European technologies exposes us to strategic and economic risks,” warned EU lawmaker Stephanie Yon-Courtin, citing US restrictions on semiconductor exports as a cautionary example.
‘Buy European’ Push Gathers Momentum
The numbers illustrate the challenge starkly. US companies—Amazon, Microsoft, and Google—control around two-thirds of Europe’s cloud computing market. European providers, by contrast, saw their market share drop to just 13% in 2022.
In 2023, the US was Europe’s second-largest source of high-tech imports, trailing only China. These imports span across aerospace, pharmaceutical technology, smartphones, and microchips.
While a European rival to Facebook or X remains unlikely, EU officials believe the artificial intelligence race is still open. The bloc has called for a “European preference for critical sectors and technologies” in public procurement to boost homegrown AI companies.
“Incentives to buy European are important,” said Benjamin Revcolevschi, CEO of French cloud provider OVHcloud, applauding the made-in-Europe approach.
Alison James of the Electronics Industry Association IPC echoed the sentiment: “We need to have what we need for our key industries and our critical industries to be able to make our stuff.”
The financial technology sector is also under scrutiny. European Central Bank President Christine Lagarde has long advocated for a “European offer” to rival American platforms like Mastercard, Visa, and PayPal, as well as Chinese services such as Alipay. Responding to her call, EU capitals are discussing the creation of a “truly European payment system.”
However, building such tech sovereignty will require vast investment—at a time when EU resources are already being stretched by defense spending.
A recent initiative, EuroStack, estimates that developing a full European tech ecosystem—including layers like AI—would cost €300 billion ($340 billion) by 2035. US trade group Chamber of Progress places the figure much higher—at over €5 trillion.
