EU Wants to Break Up with US Tech

The European Union is set to unveil a sweeping package of rules on Wednesday aimed at reducing its dependence on foreign tech providers, particularly U.S. companies and Chinese chips. The initiative, part of the EU’s push for technological sovereignty, includes measures to accelerate data center deployment, secure semiconductor supply chains, and encourage public authorities to adopt open-source software. A draft strategy document highlights concerns over Europe’s heavy reliance on U.S. cloud providers, which dominate around 70% of the market. EU officials fear potential disruptions, such as a hypothetical 'kill switch' in times of geopolitical tension, citing past incidents like U.S. sanctions against International Criminal Court judges that restricted access to American financial systems. The package includes a 'Cloud and AI Development Act' to speed up infrastructure, a 'Chips Act' to reduce foreign semiconductor dependence, and mandatory sovereignty risk assessments for critical digital services. EU lawmaker Oliver Schenk emphasized that the goal is not to exclude trading partners but to avoid structural reliance on any single external actor. The proposal also grants the EU the power to intervene in crises by overriding contracts to prioritize critical chip orders and introduces centralized purchasing to address shortages. U.S. officials, including envoy Andrew Puzder, have warned against protectionist moves, arguing that Europe cannot isolate itself from the global AI economy. Meanwhile, American tech companies insist they comply with local laws and emphasize data control over geographic borders.