The European Union is preparing a comprehensive set of measures aimed at reducing its reliance on American technology companies and Chinese semiconductor suppliers, signaling a significant push toward bolstering European technological sovereignty. The initiative, expected to be unveiled this week, forms part of a broader EU strategy to strengthen local manufacturing and secure critical digital infrastructure amid geopolitical uncertainties.

The forthcoming legislative package addresses key sectors including cloud computing, artificial intelligence (AI), and semiconductor production. Among the proposals are the “Cloud and AI Development Act,” designed to expedite the establishment of European data centers, and a “Chips Act” aimed at securing the semiconductor supply chain by decreasing dependence on foreign suppliers. Additionally, the EU plans to encourage public institutions to adopt open-source software solutions to enhance control and flexibility, thereby reducing risks associated with vendor lock-in.

A central motivation behind these initiatives is European concern over the substantial dominance of U.S. cloud service providers, which currently command approximately 70 percent of the European market. Officials have voiced apprehensions that, in situations of heightened transatlantic tensions, access to critical digital infrastructure could potentially be disrupted by foreign interventions, notably through what has been described as an American “kill switch.” Although EU representatives have stopped short of directly naming the United States as the target, many see the measures as a response to the pervasive influence of American technology firms in areas ranging from cloud services to social media and e-commerce.

EU Competition Commissioner Teresa Ribera emphasized the need for Europe to develop its own technological capabilities to safeguard decision-making processes, economic stability, and core societal values. Illustrating the possible consequences of foreign control, EU officials have cited examples such as the 2025 U.S. sanctions on International Criminal Court judges—implemented by then-President Donald Trump—which affected legal professionals’ access to American financial services.

However, the proposals have met resistance from U.S. representatives and technology companies. Andrew Puzder, the U.S. envoy to the EU, cautioned against protectionist policies, arguing that Europe’s ambitions in the AI sector should not come at the expense of cooperation or by excluding international partners. “Europe will not be able to pull itself into the AI economy by bringing other people down,” Puzder stated.

EU officials maintain that the package is not intended to erect trade barriers or isolate markets but to prevent structural dependence on any single foreign actor, thereby safeguarding Europe’s technological future in a rapidly evolving global landscape. The measures seek to position the EU as a competitive and autonomous player in the global race for geoeconomic influence, balancing engagement with strategic self-reliance.