Due to excessive dependence on the US, the EU seeks alternatives to ‘Big Tech’

Imagine that US President Donald Trump can press a switch and turn off the internet in Europe. It may sound far-fetched, even crazy, but this is a scenario that, according to the BBC, has been seriously discussed in the tech sector and political circles in recent months. The reason for this is the tense relations with Washington and concerns about the EU’s dependence on American technology.

This concern is indeed justified when considering that only three American giants – Google, Microsoft, and Amazon – provide as much as 70 percent of European infrastructure for cloud computing, which is fundamental for other online services.

Some are therefore wondering whether the unpredictable American leader would use this situation as a weapon in the event that US-European relations deteriorate. Currently, there is a certain fear among European leaders that if they do not align with his interests, Trump could order American tech companies to cease providing their services in Europe.

– If that were to happen, critical data would become inaccessible, websites would go dark, and essential government services, such as hospital systems, would cease to function – said digital governance expert Robin Berjon, who advises EU policymakers, to the BBC.

Berjon believes that the concern regarding the so-called American ‘kill switch‘ should be taken seriously and that it is ‘hard to say what problems we would find ourselves in’.

On the other hand, Microsoft, Google, and Amazon claim to offer ‘sovereign’ cloud computing solutions that protect the data of EU clients and would, as they state, prevent such a scenario from ever occurring.

However, the truth is that there has always been concern about the lack of ‘digital sovereignty’ in Europe, where American companies dominate not only the cloud computing market but also hardware, satellite internet, and now artificial intelligence. Even the main mobile operating systems, Apple and Android, are American, not to mention the payment networks Mastercard and Visa.

European Alternatives

The fear of everything that has come from America was not pronounced until May of this year when it was revealed that the chief prosecutor at the International Criminal Court (ICC), Karim Khan, lost access to his email account on the Microsoft Outlook platform after being sanctioned by the White House.

Namely, the ICC issued arrest warrants for high-ranking Israeli officials, including Prime Minister Benjamin Netanyahu, for their role in the Israel-Palestine war, which US President Trump called ‘illegitimate’. After that, Microsoft reportedly blocked his account, although the company claims that they ‘at no point’ interrupted or suspended their services for the ICC.

Regardless, since then, digital sovereignty has become a priority for Brussels, and alternatives to American service providers are actively being sought. But is it realistic to think that they could wean themselves off American technology?

Digital sovereignty is broadly defined as the ability of an administrative body to control data and technological systems within its borders. One of the problems faced by those seeking it is the lack of comparable alternatives.

Europe has its own cloud computing service providers, such as the French OVHCloud or the German T-System or Delos. But they make up only a small part of the market and do not have the same scope or range of options, writes the BBC. Similarly, open-source alternatives have common software packages like Office and Windows, and their advocates argue that they are more transparent and accessible, although not as comprehensive or well-known.

However, while the transition to sovereign alternatives would not ‘happen overnight’, it is a ‘myth’ to think that it is impossible. For instance, the German federal state of Schleswig-Holstein is currently in the process of gradually phasing out Microsoft products Office 365 and Windows and plans to introduce similar open-source solutions like LibreOffice and Linux. A similar pilot project is being conducted by the Danish Ministry of Digitalization.

‘Extremely low’ probability of shutdown

OVHCloud CEO Benjamin Revcolevschi told the BBC that companies like his are ready to respond to the sovereignty needs of public and private organizations in Europe. He claims that only European cloud service providers, headquartered in the EU and having European governance, can offer immunity from non-European laws to protect sensitive and personal data.

However, Microsoft, Amazon, and Google have already commented on this issue, stating that they already offer solutions that address concerns about digital sovereignty, solutions that store data on servers in the country or region of clients, rather than in the US.

Google stated that they also collaborate with trusted local suppliers from the EU, such as T-System, giving them control over the encryption of client data and providing customers with ‘technical veto over their data’.

Meanwhile, Microsoft President Brad Smith promised that the company would take legal action if the US government ordered them to suspend services and that they would include clauses for that scenario in European contracts, although they noted that the probability of such an event occurring is ‘extremely low’.

– We will continue to seek new ways to ensure that the European Commission and our European clients have the options and guarantees they need for reliable business – Microsoft stated.

The Center for Regulation in Europe (CERRE), based in Brussels, stated that it might make sense for Europe to develop its own limited sovereign cloud to protect key government data. However, they add that it is unrealistic to try to ‘kick Americans out of the supply chain or ensure that Europeans are present at every point in the chain’.

Regulations need to be aligned

They also noted that the tech market operates in a way that the winner takes all, making it extremely difficult for new players in the market to catch up with those who have already established themselves and become leaders in the sector. Instead, as CERRE suggests, Europe needs to focus on technological areas where it could gain an advantage.

– This could be the industrial use of artificial intelligence, as Europe already has a much larger and stronger industrial base than the US – CERRE states.

Regarding technology that already exists in the market, many believe that nothing will change unless Europe introduces new regulations that force regional organizations and governments to purchase local technology. But here, according to Berjon, the EU is dragging its feet.

– There is definitely a political interest, but now that interest needs to be turned into a common strategy – says Berjon.

We should also recall the infamous EU Competitiveness Report from last year in which Mario Draghi writes that Europe is ‘seriously lagging’ in new technologies and that ‘only four of the 50 leading global tech companies are European’.

Director of the European Center for International Political Economy Matthias Bauer states that to improve Europe’s image, they should aim to build a European tech sector that can compete with the US and China.

– Currently, a tech company based in the EU finds it much harder to expand across the continent than the same company would in the US. They face not only different languages but also different legal acts, labor market laws, tax laws, and various sector regulations – says Bauer.

Therefore, at the EU level, regulations should be aligned because, no matter how unrealistic the scenario may be that Trump will just ‘press a switch’ and turn off the internet in Europe, the past few years have taught the entire European market to be prepared for anything.