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Wednesday, Apr 02, 2025

Europe's Shift Towards Local Tech Alternatives Amid US Tensions

European governments and companies seek to reduce reliance on major American tech firms as political tensions rise.
In recent developments, European nations are actively exploring alternatives to major American technology companies like Amazon, Microsoft, and Google for cloud services.

This shift has been catalyzed by rising tensions between the United States and Europe following Donald Trump's return to the White House, with a specific focus on the European Union's extensive technology regulations.

This initiative is also considering alternatives to Elon Musk's Starlink satellite internet service.

Last week, the Dutch Parliament unanimously passed eight resolutions advocating for a shift from American tech products and services to local European alternatives.

Barbara Katteman, a member of the Dutch Parliament, stated that reliance on American tech giants compromises the nation's intellectual and digital sovereignty.

She expressed concerns over the outsourcing of digital infrastructure to billionaires focused on space exploration instead of addressing domestic needs.

This sentiment is echoed throughout the EU, where there has been an increasing call to diminish dependency on American tech firms.

In the last two months, many EU companies and governments have moved to initiate the discontinuation of services provided by Google, Amazon, and Microsoft, seeking local counterparts as replacements.

Furthermore, the EU is beginning to evaluate the development of a European alternative to Starlink, which has become a critical service amid geopolitical complications.

Historically, Europe has maintained close economic, security, and political ties with the United States since World War II. This partnership enabled American tech companies to gain substantial market share in Europe over the past two decades, effectively establishing them as primary service providers in crucial sectors such as cloud computing, social media, and online services.

Consequently, many American firms have become dominant players in Europe.

Despite the close relations, the emergence of issues such as privacy concerns and competition has prompted the EU to implement extensive regulations aimed at managing the influence and operational practices of these American companies in their markets.

Trump’s administration had previously criticized European regulations, labeling fines imposed on American companies as a form of taxation, which bolstered lobbying efforts by these tech firms against European regulation.

In response to current geopolitical dynamics, a coalition of 100 leading European companies has recently signed a letter urging for greater technological independence from American tech giants.

They pointed out the security risks associated with continued reliance on these companies.

Several European cloud service providers reported a notable rise in inquiries and contracts from clients seeking to transition from American services.

Exoscale, a European cloud service provider, reported an increased demand for their services, particularly from Danish clients looking to sever ties with American firms due to political tensions.

Similarly, Elastx executives noted that organizations are increasingly seeking alternatives due to a perceived shift in the U.S. government's posture toward Europe.

Additionally, European entities are reassessing their use of Starlink, partly driven by American threats to restrict its services in Ukraine.

The EU has approached several satellite service providers, including Hispasat and Eutelsat, to explore available options supporting internet connectivity, especially for Ukraine.

However, no European provider currently matches Starlink's capabilities, which operate a constellation of around 7,000 satellites.

The EU has initiated the Iris² project, aimed at establishing a European satellite internet network with an investment of €10.6 billion, intended to serve as a robust local alternative to Starlink by 2030. This transition represents a potential revitalization of the European tech landscape, fostering the growth of local alternatives to dominant American companies.
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