EU prepares breakup with US technology

The European Union is preparing a major push to reduce its dependence on US and Chinese technology providers, unveiling a package of rules on Wednesday targeting chips, cloud computing, and AI. The initiative, dubbed the 'technological sovereignty package,' seeks to reclaim Europe’s role in global tech competition while addressing concerns about foreign influence over critical infrastructure. A draft strategy document highlights Europe’s heavy reliance on US cloud providers, which dominate around 70% of the market. EU officials fear potential disruptions, such as a hypothetical 'kill switch' imposed by the US government, particularly after tensions escalated under President Donald Trump. The package includes the 'Cloud and AI Development Act,' aimed at accelerating data center infrastructure, and a 'Chips Act' to secure semiconductor supply chains by cutting foreign dependence. The proposal also encourages public authorities to adopt open-source software to avoid vendor lock-in and improve flexibility. EU lawmaker Oliver Schenk emphasized that the goal is not to exclude trading partners but to prevent structural dependency on any single external actor. The draft even suggests government intervention to prioritize crisis-critical chip orders, overriding existing contracts if necessary. US envoy Andrew Puzder warned against protectionist measures, arguing that Europe cannot thrive in AI by excluding others. Meanwhile, tech industry groups like the Business Software Alliance reassured Europeans that US companies comply with local laws and lack a 'kill switch' capability. The EU’s move reflects broader concerns over geopolitical risks, including past US sanctions that disrupted access to financial services for European officials.