EU’s Struggle to Reduce Reliance on US Big Tech

European Union officials are intensifying efforts to reduce the bloc’s dependence on U.S. Technology providers amid growing concerns over geopolitical risks and digital sovereignty. A recent study cited by policymakers shows that Amazon Web Services, Microsoft Azure, and Google Cloud collectively control approximately 70% of the European cloud computing market, while U.S. Vendors account for about 80% of enterprise software spending across the region.

The push for technological independence has gained urgency following shifts in transatlantic relations, with EU leaders warning that reliance on American firms could be leveraged as a tool of coercion in international negotiations. At the World Economic Forum in Davos, European Commission President Ursula von der Leyen emphasized the “structural imperative” for Europe to build greater independence in technological capacity and security.

Despite these ambitions, national governments across the EU have expressed skepticism about the feasibility of a rapid decoupling. In a survey conducted by POLITICO, officials from multiple member states acknowledged that while efforts to map dependencies on U.S. Technology are underway, a full technological separation from American firms is neither realistic nor strategically advisable in the near term.

Lithuania’s economy minister, Edvinas Grikšas, stated that the “depth of existing integration combined with shared security priorities” makes a complete break from U.S. Technology impractical for the foreseeable future. Similar sentiments were echoed by officials in Latvia and Lithuania, who cited ongoing security concerns related to Russia as a reason maintaining certain ties with U.S. Providers remains essential for national resilience.

Several countries are pursuing targeted preparations to mitigate risks. Finland, for example, has conducted scenario planning exercises simulating a potential “kill switch” scenario in which access to U.S. Cloud services could be abruptly cut off. These drills aim to assess how critical government functions and essential services would respond to a sudden disruption in digital infrastructure.

While the European Commission is preparing to unveil a legislative package focused on tech sovereignty in the spring, including measures to promote open-source alternatives, experts note that rebuilding domestic capacity will require significant investment and time. Current estimates indicate that European cloud providers hold only about 15% of the market, highlighting the scale of the challenge in developing viable alternatives to U.S. Hyperscalers.

The debate over Europe’s digital future reflects broader tensions between the desire for strategic autonomy and the practical realities of operating in a deeply interconnected global technology ecosystem. As policymakers weigh options, the focus remains on reducing vulnerability without undermining the security and efficiency benefits derived from existing transatlantic tech partnerships.