Europe Divided Over Big Tech Curbs And Digital Sovereignty Plans
European leaders remain divided over how aggressively the European Union should limit the influence of major technology companies as the bloc prepares key decisions on satellite spectrum access and cloud computing contracts.
The debate reflects wider concerns about Europe’s dependence on U.S. technology firms and growing pressure to strengthen the region’s digital sovereignty.
EU Weighs Limits On Foreign Tech Firms
Brussels is expected to leave room for Elon Musk’s Starlink and Amazon’s low-Earth-orbit satellite business Project Kuiper to compete for European mobile satellite spectrum next year. However, a proposed compromise would reserve most frequencies for European companies.
At the same time, the EU is preparing a decision on cloud computing tenders scheduled for June 3. The measures are expected to reduce the dominance of U.S. cloud providers including Amazon, Google and Microsoft in sensitive European procurement projects.
Together, the proposals signal Europe’s broader attempt to strengthen domestic technology industries amid concerns over China’s technological rise and uncertainty surrounding transatlantic relations.
European Officials Split On ‘Buy European’ Strategy
European capitals disagree over how quickly and aggressively to implement policies favouring local technology companies.
Officials supporting a stronger “Buy European” strategy include EU industry chief Stephane Sejourne and EU defence chief Andrius Kubilius. According to sources familiar with the discussions, both favour giving European firms greater priority in strategic sectors, particularly in defence and communications infrastructure.
Meanwhile, EU technology chief Henna Virkkunen has argued that Europe should focus on applying clear rules to all companies rather than excluding non-European firms outright.
Sources indicated that Virkkunen’s more moderate position is likely to shape the final outcome because she oversees the policy areas currently under discussion.
Cloud And AI Law Highlights Security Concerns
The upcoming EU Cloud and AI Development Act has faced repeated delays because of disagreements among policymakers. Nevertheless, the legislation is expected to be unveiled on June 3.
The proposed law aims to address concerns that Europe remains vulnerable because critical digital infrastructure is largely controlled by foreign companies. In addition, officials worry the region continues to lag behind the United States and China in cloud services and artificial intelligence.
Alba Ribera Martínez, editor-in-chief of the Stanford Computational Antitrust project, said the current geopolitical climate had exposed Europe’s structural vulnerabilities.
However, she also warned that Europe faces a major investment challenge in competing with U.S. cloud infrastructure providers. According to her estimates, the region faces a €1 trillion investment gap compared with the United States.
Satellite Spectrum Debate Intensifies
The EU is also preparing to overhaul the allocation process for mobile satellite service spectrum currently used by U.S. companies including Viasat and EchoStar.
The 2 gigahertz spectrum band holds importance for both military and commercial applications. Consequently, changes to the allocation process could support European companies such as OVHCloud and Deutsche Telekom while limiting Starlink’s expansion in the region.
Industry lobbying group CCIA, whose members include Amazon, Google, Meta and EchoStar, recently warned against excluding non-European firms from EU digital markets. The organisation argued that protectionist policies could reduce competition and consumer choice.
Both the satellite spectrum proposal and the Cloud and AI Development Act will still require negotiations with EU member states and the European Parliament before final approval.
With inputs from Reuters