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News - The European Union's data strategy is encountering challenges due to the dominant position of US tech companies.

Business Strategy

The European Union's data strategy is encountering challenges due to the dominant position of US tech companies.

by Lilit Jan. 4, 2026

Miguel De Bruycker, the director of the Centre for Cybersecurity Belgium (CCB), has sounded an alarm over the EU's reliance on US technology firms for data storage and internet infrastructure. In a conversation with the Financial Times, De Bruycker argued that the EU's current regulatory framework is inadequate for asserting digital sovereignty. He pointed out that the dominance of US tech giants in controlling key online services forces the EU into a challenging position, compromising its ability to manage data autonomously within its borders. De Bruycker stated that expecting complete data autonomy within the EU is unrealistic, emphasizing that the internet and cloud resources are predominantly controlled by American companies. “We’ve lost the whole cloud. We have lost the internet, let’s be honest,” he remarked, highlighting the deep entrenchment of US firms in European digital infrastructure. The EU's stringent artificial intelligence (AI) regulations, specifically the AI Act, have reportedly hindered innovation due to high compliance costs that deter investments. These measures have sparked criticism within the EU and from US technology corporations, which view them as protectionist. With the AI Act imposing strict transparency and documentation requirements, Brussels was forced to adapt its strategy by unveiling a Digital Simplification Package in late 2025. This initiative aimed to lessen regulatory burdens on start-ups by offering extended compliance periods and establishing the Apply AI Alliance for technical guidance. De Bruycker advocated for a strategic shift towards fostering internal technological initiatives, likening the need for EU cooperation in cybersecurity to the successful joint efforts in establishing Airbus. He suggested that Europe should invest in its digital sphere to counterbalance US 'hyperscalers,' rather than focusing on restrictive measures. "Instead of putting that focus on how can we stop the US 'hyperscalers', maybe we put our energy in building up something by ourselves," De Bruycker proposed, urging a concerted effort at the EU level to enhance digital infrastructure and cloud computing capabilities, potentially reducing dependence on external tech entities.

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