Interest in European digital services has increased amid rising concerns over data privacy and US tech companies’ political influence.

At a Berlin market stall run by the charity Topio, volunteers help users reduce US tech influence on their devices.

They install alternative operating systems and software, with demand rising since the 2020 US election.

Digital sovereignty is gaining traction among European governments.

Germany’s coalition government supports open-source data formats and local cloud infrastructure.

Regional governments like Schleswig-Holstein mandate open-source software for public administration.

Meanwhile, services like Ecosia and ProtonMail report significant growth in EU users.

However, US tech companies still dominate. Alphabet reported US$100 billion in revenue from Europe, the Middle East, and Africa in 2024.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ European digital sovereignty efforts face steep economic hurdles despite regulatory progress

While European digital alternatives are gaining attention, they remain dwarfed by U.S. tech giants in both scale and market penetration.

Ecosia’s 122 million visits from EU countries compared to Google’s 10.3 billion illustrates the massive gap between European alternatives and established U.S. platforms 1.

The economic reality is stark: Google’s parent Alphabet alone generated approximately $100 billion in revenue from Europe, the Middle East, and Africa in 2024—about 30 times more than all European tech unicorns combined 1.

European governments have recognized these challenges, with member states outlining measures worth €288.6 billion (1.14% of EU GDP) to address digital transformation needs and reduce strategic dependencies 2.

Despite these initiatives, building viable alternatives requires overcoming significant infrastructure barriers. Over 70% of French websites and 85% of digital services for major corporations still depend on U.S. cloud infrastructure 3.

2️⃣ The quest for digital sovereignty reflects a deeper regulatory divergence between Europe and the U.S.

Europe’s push for digital sovereignty isn’t merely a reaction to recent political developments but represents a fundamental regulatory philosophy developing over years.

The EU established its distinct approach with GDPR in 2018, which prioritized individual data rights over corporate interests—a stark contrast to the U.S. model that generally favors business flexibility 4.

This divergence has widened with Europe’s comprehensive regulatory framework including the Digital Markets Act (DMA) and Digital Services Act (DSA), which impose stricter rules on tech platforms regarding competition, content moderation, and algorithmic transparency 4.

Recent tensions highlight this philosophical divide. For example, U.S. Secretary of State Marco Rubio’s threat of visa bans for those who “censor” American speech contrasts sharply with the EU’s view that platform regulation is necessary consumer protection rather than censorship.

The EU’s Digital Decade Policy Programme represents a deliberate strategy to shape the global digital landscape according to European values of privacy, fairness, and democratic oversight 2.

3️⃣ Europe is developing a distinctly regional approach to AI and cloud computing

Europe is actively building alternatives to U.S.-dominated AI and cloud services, balancing innovation with its values of privacy and democratic oversight.

The EU has launched initiatives like AI factories to provide small and medium enterprises access to high-performance computing resources, addressing a critical bottleneck in AI development 5.

Investments in cloud initiatives like Gaia-X and the EuroStack program aim to create European alternatives to U.S. cloud providers, focusing on interoperability, data protection, and reducing strategic dependencies 6.

Rather than simply replicating the U.S. model, Europe is developing what some call a “third way” in cyberspace—distinct from both the U.S. liberal market approach and China’s state-controlled model 7.

This approach emphasizes public-private partnerships and strategic investment in critical technologies, with the European Parliament’s Committee on Industry, Research and Energy specifically advocating for control over digital infrastructures to maintain economic and political autonomy 8.

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