Wary of being vulnerable to the whims of foreign governments, the European Union is preparing far-reaching new moves to ditch American digital companies and Chinese chips in favour of European alternatives.
The EU’s technological sovereignty package is among many measures taken by Brussels to slash dependence on foreign firms and boost local manufacturing — but risks opening up a new front in transatlantic tensions.
The hotly awaited package of new rules on chips, cloud computing and AI will be presented on Wednesday as part of the EU’s effort to “reclaim its place in the global race for geoeconomic power”, a draft strategy document seen by AFP said.
Of particular concern is how much the European Union relies on US cloud providers, which account for around 70 percent of Europe’s market.
Since President Donald Trump returned to the White House last year, Europeans worry that critical digital infrastructure could be brought to a halt by an American “kill switch” if tensions ever reached fever pitch.
Top EU officials don’t directly name their target as the United States, but American tech dominates, from cloud computing to social media to e-commerce.
“We need to develop our own capacities. We cannot allow someone trying to influence our own decisions, our own values, our own well-functioning economy and services,” EU competition tsar Teresa Ribera said this month.
EU officials often point to Washington’s sanctions against International Criminal Court judges — imposed by Trump in February 2025 — to illustrate the grip of US firms. Judge Nicolas Guillou has described how he lost access to his Visa card since it is an American system.
But US envoy to the EU Andrew Puzder has warned against any protectionist moves, while American companies have urged Europe not to keep them out.
“Europe will not be able to pull itself into the AI economy by bringing other people down,” Puzder told AFP last month when asked about the plans.
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Sweeping package
Wednesday’s package will include the Cloud and AI Development Act aimed at speeding up data centre infrastructure deployment, a CHIPS Act proposal to strengthen semiconductor supply security by reducing reliance on foreign providers, and a push for public authorities to adopt more open-source software to improve control, flexibility and avoid vendor lock-in.
EU lawmaker Oliver Schenk told AFP the package was “not about opposing our trading partners or closing markets”, but said: “Europe must avoid becoming structurally dependent on any single external actor” for AI, cloud and chips.
