**Brussels**: Amid rising tensions with the US under President Trump, the EU is striving for technological sovereignty by promoting homegrown tech, prioritising AI, quantum computing, and semiconductors, and implementing stricter regulations to reduce dependency on American companies.
As tensions between the United States and Europe intensify under President Donald Trump’s administration, the European Union (EU) is increasingly pushing for technological independence from US-based companies. This shift comes amid concerns about reliance on American tech giants and the potential risks that come with it, particularly as the transatlantic relationship faces unprecedented strains.
Much of the daily technology used in Europe today is dominated by American firms such as Microsoft, Meta, Apple, and Uber, spanning key areas from cloud computing to artificial intelligence (AI). However, with trade disputes escalating and the prospect of tariffs and digital taxes looming, European leaders are now urging a strategic pivot towards favouring homegrown tech companies in public procurement and developing European alternatives to widely used US services.
EU technology commissioner Henna Virkkunen has outlined technology sectors deemed critical for the bloc’s future independence, naming AI, quantum computing, and semiconductors as priorities. Virkkunen emphasised the need to “build up our own capacities when it comes to technologies,” reflecting a broader initiative aimed at strengthening Europe’s technological infrastructure.
A significant concern is that deteriorating relations with the US could lead to Washington leveraging its dominance in digital technologies as a political or economic tool. EU lawmaker Stephanie Yon-Courtin highlighted this risk: “Relying exclusively on non-European technologies exposes us to strategic and economic risks,” citing US restrictions on semiconductor exports as an example.
The scale of current European dependence on US tech is clear when examining the cloud market, where American firms hold about two-thirds of market share, while European providers capture only two percent. Furthermore, the EU imports 23 percent of its high-tech goods from the US, second only to China, encompassing a wide range of products from aerospace and pharmaceuticals to smartphones and chips.
While proposals for European social media platforms to rival giants like Facebook or X have not gained serious traction, the EU is committed to making strides in AI. To encourage the growth of European AI companies, the EU has advocated for a preference in public contracts for critical sectors and technologies based in Europe. Benjamin Revcolevschi, CEO of French cloud provider OVHcloud, welcomed this approach, speaking to AFP: “Incentives to buy European are important.”
In the financial technology arena, European Central Bank president Christine Lagarde has promoted the creation of a pan-European payment system to compete with established American services such as Mastercard, Visa, and Paypal, as well as Chinese platforms like Alipay. EU capitals have reportedly discussed this initiative as part of a broader strategy to reduce reliance on foreign payment technologies.
Achieving technological sovereignty is expected to require significant investment. Experts involved in the EuroStack initiative estimate the cost to build a comprehensive European tech ecosystem, including AI capabilities, at around 300 billion euros (€340 billion) by 2035. Yet, figures from the US trade group Chamber of Progress suggest the investment needed could surpass five trillion euros.
The diverging regulatory and economic models between the US and EU have also played a role in this dynamic. US Vice President JD Vance has criticised European regulations as stifling innovation and disadvantaging American firms. Conversely, the EU has implemented strict digital laws including the Digital Markets Act (DMA) and the Digital Services Act (DSA) to govern big tech operations within its borders. The EU’s General Data Protection Regulation (GDPR) introduced in 2018 set stringent standards for user data protection, followed by the world’s broadest AI regulations last year.
These regulations not only impose compliance obligations on US companies but also empower European consumers. For example, the DMA requires technology providers such as Apple and Google to give users a choice of web browser rather than imposing their default options. Bruce Lawson, from Norwegian browser Vivaldi, noted to AFP a “significant and gratifying increase in downloads in Europe” attributed to the DMA. Lawson stressed, “It’s about weaning ourselves off the dependency on infrastructure that have very different values about data protection,” adding that European users often prefer their data to be handled by companies based in Europe under familiar regulations.
As the EU continues to navigate these technological and geopolitical challenges, the push for a more autonomous digital future represents a complex blend of economic interests, regulatory philosophy, and strategic foresight. The evolving landscape suggests a concerted European effort to carve out its own space in the global technology arena distinct from longstanding US dominance.
Source: Noah Wire Services
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