European companies are concerned about plans from Brussels to reduce dependence on American technology companies. According to businesses, accelerating this strategy could negatively affect profitability and competitiveness.
This is evident from an analysis by the Financial Times. The discussion is taking place at a time when the European Union is placing greater emphasis on technological independence.
Companies across sectors such as banking, industry, and technology report that their digital infrastructure is closely intertwined with American software and cloud platforms. Many organizations rely on services from large American suppliers for office software, cloud storage, and AI applications. According to them, this dependence cannot be reduced quickly without operational disruptions.
Within the industry, there is a perception that many European alternatives to IT systems are still underdeveloped. Some executives argue that Europe currently lacks a complete range of products to replace existing systems. A transition would therefore only be possible with substantial investment and long-term political support.
European technology companies have also warned against an overly protectionist approach. Executives at ASML, Ericsson, Capgemini, and others point out that measures that exclude foreign technology could lead to higher costs and less innovation.
Brussels focuses on European cloud and software
The debate is further fuelled by geopolitical tensions. There is growing concern in European policy circles that political developments in the United States could lead to a separation between American and European technological ecosystems. The European Commission is therefore working on measures to strengthen the EU’s digital autonomy, including expanding European cloud solutions and strengthening European software’s position.
However, companies doubt whether policymakers are sufficiently assessing the practical impact of a rapid transition. According to them, the proposal comes at a time when European industry is already under pressure from high energy prices, competition from China, and uncertainty surrounding international trade.
In the financial sector, attention is drawn to the technological difference between American and European providers. Banks argue that the quality and scale of services offered by companies such as Microsoft and Google are difficult to match within Europe for the time being.
The automotive industry also emphasizes that switching to other technologies takes time and money. Large companies have often built their IT environments around American platforms over many years. Replacing them means that software has to be redeveloped, employees have to be retrained, and contracts have to be renegotiated.
Researchers point out that multinationals have often built their business processes around American technology for decades. According to them, this makes a rapid transition particularly complex, especially in a competitive international market where any delay can affect market share.
At the same time, there is growing concern about concentration risks in the cloud market. Financial institutions report that a large part of their infrastructure runs on a small number of global cloud providers, many of which are based in the United States.
European alternatives not yet mature enough
Consultants argue that American cloud companies currently have a head start in terms of scale, stability, and innovation. As a result, many organizations remain dependent on these platforms until comparable European alternatives become available.
European boardrooms are also discussing a scenario in which American technology companies would have to limit their services to European customers, for example, through sanctions or export restrictions. Although most managers consider such a scenario unlikely, those involved say it is increasingly becoming part of strategic discussions.
American technology companies are meanwhile trying to reassure European customers and are seeking cooperation with European partners. Examples include so-called sovereign cloud solutions, in which data and infrastructure are partly managed within Europe.
European telecom and technology companies are also developing their own cloud and AI platforms. At the same time, some companies recognize that complete independence from foreign technology is unrealistic in the short term.
In policy circles in Berlin, there is a growing belief that Europe would be better off focusing on applying existing AI technology rather than building its own ecosystem from scratch. Developing its own cloud infrastructure and AI foundation models requires substantial investment, while international competition is rapidly intensifying.
Critics warn that the pursuit of digital autonomy could lead to protectionism and slow down innovation. At the same time, business representatives emphasize that Europe must first address structural problems such as a fragmented internal market, complex regulations, and limited access to investment capital.