European Commission Unveils Plan to Reduce Reliance on US and Chinese Tech

Europe’s dependence on foreign technology has reached a critical threshold, with the European Commission reporting that non-European providers supply approximately 80% of the bloc’s digital products, services, infrastructure, and intellectual property. Facing what officials describe as a growing risk of foreign interference, Brussels is moving to foster a homegrown tech sector, targeting sectors ranging from semiconductor manufacturing to cloud computing and artificial intelligence.

Legislative Framework: Chips and Cloud Sovereignty

The commission’s “tech sovereignty” package centers on two primary legislative pillars: the Chips Act 2.0 and the Cloud and AI Development Act. According to the European Commission, these laws are designed to streamline the construction of data centers and “AI gigafactories” while increasing investment in European semiconductor makers. The initiative aims to triple the bloc’s cloud capacity within five to seven years.

The Cloud and AI Development Act introduces a ranking system for providers handling public-sector data. Under this framework, the most sensitive operations—specifically those involving national security and law enforcement—would be restricted to providers meeting the highest sovereignty standards, effectively creating a preference for European-based companies. Currently, American firms dominate this space; Microsoft Azure, Amazon Web Services, and Google Cloud account for 70% of the European market, with the EU spending an estimated 264 billion euros annually on U.S. cloud software, according to a 2025 report by French consultancy Asteres.

Escalating Tensions with Washington and Beijing

The commission’s push is driven by fears that technological dependence is being weaponized. Ursula von der Leyen, president of the European Commission, emphasized the necessity of this shift in a statement: We cannot afford to depend on others for the technologies that keep our hospitals running, our energy grids stable and our services secure.

Brussels’ concerns were exacerbated by the 2018 U.S. CLOUD Act, which permits American authorities to access European data regardless of its physical location. Furthermore, political friction has intensified under the Trump administration. Sanctions against International Criminal Court (ICC) judges—including a Slovenian national living in the Netherlands—resulted in the immediate loss of access to various U.S. digital services, including credit card processing and cloud accounts. This event has been widely cited as a wake-up call for European governments regarding the risks of relying on foreign infrastructure.

Implementation and the Ambition

Beyond the commission’s formal package, various European entities are independently shifting toward local or open-source alternatives. The European Parliament has replaced Google with the French search engine Qwant on its devices, while the French government is deploying its own open-source office software, known as LaSuite. Meanwhile, the Dutch government has moved its code repositories away from Microsoft-owned GitHub.

Despite these efforts, Henna Virkkunen, the commissioner overseeing the proposals, sought to mitigate fears of isolationism at a June 2026 news conference. Technological sovereignty does not mean protectionism, Virkkunen said, adding that the commission remains committed to openness, partnership, and fair competition.

The path forward remains uncertain. Critics warn that if the EU’s measures are perceived as protectionist, they could trigger a retaliatory trade war. If the U.S. or China were to restrict access to raw materials or key technologies, Europe could find itself in a more precarious position. Matthias Ecke of the Socialists and Democrats group in the European Parliament noted that while the bloc is setting its own rules, American providers are likely to remain dominant in the near term.

As the European Commission begins the process of finalizing the Chips Act 2.0 and the Cloud and AI Development Act with the European Parliament and the 27 member states, the effectiveness of these measures in balancing domestic autonomy against global trade realities will be tested. For now, the focus remains on whether the EU can build “just enough” capability to shield its critical public services from foreign political pressure.

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