European businesses have warned that a growing push for “tech sovereignty” could hit profits and risk undermining the continent’s competitiveness, as Brussels steps up efforts to reduce its reliance on US tech giants.
Companies from industries spanning banking to manufacturing have told the FT that their dependence on American tech, from office software to cloud infrastructure and fast-growing AI services, cannot be unwound quickly without major disruption.
“In Europe today we are not truly in the position to substitute all our IT solutions . . . with European solutions,” said Ilse Henne, the chief executive of supply chain manager Thyssenkrupp Material Services, while adding that significant investment and political support were needed to move away from US tech.