Europe's Reliance on US Big Tech: Is the EU Ready for Change?
In an era where technology plays a pivotal role in almost every aspect of life, Europe's dependence on American tech giants is becoming increasingly alarming. The vast majority of European data resides on US-based cloud services, with companies like Amazon, Microsoft, and Google dominating the market. This reliance has left the continent vulnerable to sovereignty risks, as technical issues, geopolitical disputes, or malicious activity can have far-reaching consequences.
The EU's Complacency Problem
According to Johan Linåker, a senior researcher at RISE Research Institutes of Sweden, Europe's complacency is largely to blame for this predicament. "There's a tradition of conservative procurement culture, risk aversion, and preference for the status quo," he notes. This mindset has allowed public sector and governments to suffer from the comfort syndrome, failing to adapt to changing circumstances.
The Emergence of Digital Sovereignty
In response to these risks, EU lawmakers are pushing for alternatives to US Big Tech. The European Commission has appointed its first "technology sovereignty, security and democracy" chief, Henna Virkkunen, who will work on reducing dependency and formulating policies that ensure digital security. Additionally, the Eurostack movement aims to build an independent European digital infrastructure, limiting dependence on foreign technology and US companies.
However, this transition won't be easy. An analysis by independent think-tank Bertelsmann Stiftung estimates it will take roughly a decade and €300 billion for Eurostack to achieve its goal. A less conservative estimate suggests the full cost could be as high as €5 trillion.
The Need for Realistic Alternatives
France, Germany, the Netherlands, and Italy are also investing in open-source platforms, which provide free and modified technology that can be used by governments. This approach can help foster digital sovereignty and resilience, but it requires significant investments of time and money.
Pioneering Projects: A Glimmer of Hope
Some cities and regions are taking digital sovereignty seriously, leading the way to making this change concrete. The Swedish city of Helsingborg is testing how its public services would function in the event of a digital blackout. Meanwhile, the German region of Schleswig-Holstein has successfully substituted Microsoft-powered computer systems with open-source alternatives, cancelling almost 80 percent of its Microsoft licenses.
The Road Ahead: A Mix of Cooperation and Decoupling
However, weaning off US tech entirely is unlikely to be achieved in the near future. An EU digital strategy report draft reviewed by POLITICO notes that decoupling from US dominance is "unrealistic" and cooperation will remain significant across the technological value chain. This means the EU will continue to promote collaboration with the US and other tech players, including China, Japan, India, and South Korea.
The Consequences of Inaction
Linåker warns that if the plug gets pulled, consequences will be catastrophic. "Either way, policy makers and governments need to realise the risk is a fact, understand the potential consequences, and start treating digital infrastructure as a critical asset."
In an era where technology plays a pivotal role in almost every aspect of life, Europe's dependence on American tech giants is becoming increasingly alarming. The vast majority of European data resides on US-based cloud services, with companies like Amazon, Microsoft, and Google dominating the market. This reliance has left the continent vulnerable to sovereignty risks, as technical issues, geopolitical disputes, or malicious activity can have far-reaching consequences.
The EU's Complacency Problem
According to Johan Linåker, a senior researcher at RISE Research Institutes of Sweden, Europe's complacency is largely to blame for this predicament. "There's a tradition of conservative procurement culture, risk aversion, and preference for the status quo," he notes. This mindset has allowed public sector and governments to suffer from the comfort syndrome, failing to adapt to changing circumstances.
The Emergence of Digital Sovereignty
In response to these risks, EU lawmakers are pushing for alternatives to US Big Tech. The European Commission has appointed its first "technology sovereignty, security and democracy" chief, Henna Virkkunen, who will work on reducing dependency and formulating policies that ensure digital security. Additionally, the Eurostack movement aims to build an independent European digital infrastructure, limiting dependence on foreign technology and US companies.
However, this transition won't be easy. An analysis by independent think-tank Bertelsmann Stiftung estimates it will take roughly a decade and €300 billion for Eurostack to achieve its goal. A less conservative estimate suggests the full cost could be as high as €5 trillion.
The Need for Realistic Alternatives
France, Germany, the Netherlands, and Italy are also investing in open-source platforms, which provide free and modified technology that can be used by governments. This approach can help foster digital sovereignty and resilience, but it requires significant investments of time and money.
Pioneering Projects: A Glimmer of Hope
Some cities and regions are taking digital sovereignty seriously, leading the way to making this change concrete. The Swedish city of Helsingborg is testing how its public services would function in the event of a digital blackout. Meanwhile, the German region of Schleswig-Holstein has successfully substituted Microsoft-powered computer systems with open-source alternatives, cancelling almost 80 percent of its Microsoft licenses.
The Road Ahead: A Mix of Cooperation and Decoupling
However, weaning off US tech entirely is unlikely to be achieved in the near future. An EU digital strategy report draft reviewed by POLITICO notes that decoupling from US dominance is "unrealistic" and cooperation will remain significant across the technological value chain. This means the EU will continue to promote collaboration with the US and other tech players, including China, Japan, India, and South Korea.
The Consequences of Inaction
Linåker warns that if the plug gets pulled, consequences will be catastrophic. "Either way, policy makers and governments need to realise the risk is a fact, understand the potential consequences, and start treating digital infrastructure as a critical asset."