Europe Rethinks Tech Strategy Amidst Rising U.S. Tensions
By Archyde News Journalist
Once champions of an open digital economy, a coalition of Nordic, Baltic, and smaller European nations known as the D9+ group is shifting its stance. Formed in 2016, the group initially advocated for frictionless digital trade. However, the looming threat of punitive tariffs from the United States, echoing similar trade disputes under past administrations, has spurred a meaningful strategic pivot.
The group’s recent communique from their summit in Amsterdam emphasizes the urgent need for the European Union to develop a strategy that enhances “tech sovereignty.” This concept, gaining traction across the continent, signifies Europe’s ambition to reduce its reliance on foreign, particularly American, technology and infrastructure. According to the D9+ statement,achieving tech sovereignty requires Europe to not only bolster its technological capabilities but also to proactively manage its trade relationships. The implications of this shift could reshape the transatlantic tech landscape and prompt a re-evaluation of global digital alliances.
The European Union needs a strategy that increases “tech sovereignty,”
D9+ communique from Amsterdam summit, March 19, 2025
While the exact measures Europe might deploy remain a subject of speculation, several potential avenues are being explored. the European Commission is reportedly poised to announce penalties against tech giants like meta and Apple for alleged violations of the Digital Markets Act (DMA). This landmark legislation, designed to curb anti-competitive practices by large tech platforms, could serve as a key tool in asserting European regulatory authority.
Beyond DMA enforcement, other potential actions include restricting U.S. companies’ access to European public contracts. Furthermore, the EU’s Anti-Coercion Instrument, a relatively new trade defense mechanism, could be invoked to implement sweeping measures, potentially including the ban of U.S. social media platforms. Elon Musk’s X (formerly twitter) has been specifically mentioned as a potential target, reflecting growing concerns over data privacy and content moderation policies.
Thes potential measures reflect a growing concern within Europe about the dominance of U.S. tech companies and the need to protect European values and interests in the digital sphere. A similar situation unfolded when the U.S. imposed tariffs on steel and aluminum. The EU responded with tariffs on american products like Harley-Davidson motorcycles and bourbon, demonstrating a willingness to retaliate against measures deemed unfair.
| Potential EU Actions | U.S. response | Potential Impact on U.S. Businesses |
|---|---|---|
| Penalties for DMA violations | Potential WTO challenges | Increased compliance costs, fines |
| Restrictions on public contracts | Trade negotiations, diplomatic pressure | Reduced access to EU markets |
| Banning social media platforms | Free speech concerns, retaliatory bans | Significant revenue loss, user disruption |
The Push for “Tech Sovereignty”: A Balanced approach?
Despite the tough talk of potential penalties and restrictions, the D9+ communique also strikes a more conciliatory tone.It emphasizes the importance of reducing regulation and fostering the growth of Europe’s digital economy. The group advocates for increased investment in european artificial intelligence, cloud computing, and connectivity infrastructure.
Crucially, the communique defines “tech sovereignty in an open manner,” suggesting a desire to balance autonomy with continued collaboration. This implies that the EU seeks to strengthen its own digital businesses while maintaining partnerships with U.S. counterparts where possible. The underlying goal is to achieve the “ability to act autonomously on the world stage and in line with our values while reaping the benefits of collaboration with global partners when possible.”
Tech sovereignty in an open manner…mean[s] “the ability to act autonomously on the world stage and in line with our values while reaping the benefits of collaboration with global partners when possible.
D9+ communique from Amsterdam summit, March 19, 2025
This nuanced approach reflects a broader debate within Europe about the optimal path to digital independence. Some argue for a more protectionist strategy, prioritizing the development of purely European technologies and shielding them from foreign competition. Others advocate for a more collaborative approach, leveraging existing partnerships and fostering innovation through open markets.
Building a european Tech Infrastructure
Underlying the push for tech sovereignty is a growing recognition of Europe’s strategic dependencies on the United States, particularly in critical areas like cloud computing and cybersecurity. This concern has been amplified by recent geopolitical tensions and the perceived weaponization of technology by foreign powers.
In March 2025, a coalition of approximately 100 European companies, including defense industry giants Airbus and Dassault, sent a letter to European Commission president Ursula von der Leyen urging the EU to pursue greater technological independence across all layers of its critical digital infrastructure. This unprecedented call to action underscores the depth of concern within the European business community.
The letter highlights the need for bold investments in research and development, as well as policies that favor European companies in strategic sectors. it also calls for a more assertive approach to regulating foreign tech companies operating in Europe.
One potential model for achieving greater tech sovereignty is the European cloud initiative, Gaia-X. This project aims to create a secure and interoperable European cloud infrastructure that adheres to European data protection standards. While gaia-X has faced challenges in gaining traction, it represents a significant effort to reduce Europe’s reliance on U.S.-based cloud providers like Amazon Web Services and Microsoft Azure.
Similar to the U.S. government’s efforts to promote domestic semiconductor manufacturing through the CHIPS Act, Europe is considering similar initiatives to boost its own tech industry. These efforts could include direct subsidies, tax breaks, and other incentives to encourage companies to invest in European research, development, and manufacturing.
Startups Weigh In: The S9+ Declaration
While governments grapple with the broader implications of tech sovereignty, European startups are increasingly focused on digital competitiveness. During the recent D9+ summit in Amsterdam, the S9+ (Startups) coalition hosted an event focused on “Accelerating Europe’s competitiveness.”
The S9+ issued a declaration pushing back against what they perceive as “excessive regulation on digital businesses.” They argue that “Europe’s excessive and fragmented regulation has become a self-imposed barrier,making scaling for start-ups increasingly difficult.” This perspective highlights the tension between the desire for greater regulatory control and the need to foster innovation and growth.
Yesterday, as part of the D9 Summit in amsterdam, we gathered the S9 Coalition and startups to discuss Accelerating Europe’s Competitiveness!
It was a pleasure, and a great opportunity to connect with some of Europe’s most ambitious founders.
Hear's what went down:
pic.twitter.com/a4lGj8p6W3
— S9 Coalition (@S9Coalition) November 17, 2023
The S9+ declaration identifies five key areas for action: “AI Competitiveness,” “Balanced Data Regulation,” “Unlocking Growth Capital,” “Preserving data-driven marketing and advertising,” and “Enabling Digital Infrastructure.” These priorities reflect the concerns of european startups about the challenges of competing in a global market dominated by U.S. and Chinese tech giants.
The S9+ perspective serves as a reminder that the pursuit of tech sovereignty must be balanced with the need to create a supportive environment for innovation and entrepreneurship. Overly restrictive regulations could stifle growth and drive European startups to seek opportunities elsewhere.
The Road Ahead: Collaboration or Isolation?
As Europe navigates the complex path toward tech sovereignty, the fundamental question remains: will it choose to collaborate with the united States or pursue a more self-reliant course? The answer to this question will have profound implications for the future of the transatlantic relationship and the global digital economy.
A collaborative approach would involve working with the United States to address shared challenges, such as cybersecurity, data privacy, and antitrust enforcement. it would also entail fostering greater interoperability between European and American technologies and promoting open standards.
A more independent approach, on the other hand, would prioritize the development of purely European technologies and seek to reduce reliance on foreign providers. This approach could involve implementing stricter regulations on foreign tech companies and providing preferential treatment to European firms.
Ultimately, the optimal path likely lies somewhere in between these two extremes. Europe needs to strengthen its own technological capabilities and assert its regulatory authority. However, it also needs to maintain open channels of communication and collaboration with the United States to address shared challenges and avoid needless trade disputes.
The pursuit of tech sovereignty is not simply about protecting European interests; it is also about ensuring a more diverse and resilient global digital ecosystem. By fostering competition and innovation,Europe can help to prevent any single country or company from dominating the digital landscape.
