EU Plans 'Tech Sovereignty' Overhaul
The European Union is preparing a “tech sovereignty package” designed to reduce dependency on U.S. cloud providers and bolster its own technology sector, according to the Financial Times. This initiative is part of a broader legislative push, including the Digital Omnibus proposal and the Digital Networks Act, which aim to rewrite rules on digital markets, data flows, and infrastructure resilience.
- U.S.-based providers like Amazon, Microsoft, and Google command a dominant 70% share of the European cloud market, while EU-based providers hold only 15%. This has prompted initiatives to bolster the EU's homegrown cloud sector. - The Digital Networks Act (DNA), a key part of the overhaul adopted on January 21, 2026, aims to merge four existing legal acts into a single regulation to simplify the rules for digital infrastructure. It will introduce a "Single Passport" to allow providers to operate across the EU with a single authorization. - A central goal of the DNA is to mandate the phase-out of copper networks and transition to fiber by 2035, requiring Member States to submit national transition plans. - The "Digital Omnibus proposal," published on November 19, 2025, is not about creating new laws but aims to amend and consolidate existing legislation like the GDPR and the AI Act to improve clarity and reduce legal uncertainties. - The push for tech sovereignty is championed by figures like Thierry Breton, the European Commissioner for the Internal Market, who has advocated for reducing Europe's dependency on U.S. technology and creating a robust, autonomous European tech ecosystem. - A flagship legislative proposal expected in the first quarter of 2026 is the Cloud and AI Development Act, which will address regulatory gaps and promote a competitive European ecosystem for these technologies. - Initiatives like Gaia-X, a project to create a federated and secure data infrastructure, aim to provide an alternative to non-European cloud providers by ensuring data is handled according to European values like data protection and transparency. - The "Path to the Digital Decade" program sets ambitious 2030 targets, including having 75% of EU enterprises use cloud or AI services and ensuring 100% online access to key public services.
