How Brussels can avoid becoming a digital vassal to US Big Tech

2026-01-25 · Source: Privacat Insights · Field: Government & Public Sector — Public Policy & Governance, International Relations & Diplomacy, Regulatory & Compliance · Depth: Intermediate, medium

Summary

The most important AI-governance development of 2026 was a US export-control order on June 12, directing Anthropic to block global access to its Fable and Mythos frontier AI models. This action, later rescinded after negotiations, signaled Washington's power over model access, not just hardware, and highlighted Europe's lack of AI sovereignty. At the G7, EU leaders acknowledged this dependency, noting 80% of EU enterprise-software spend goes to US firms like Microsoft, Oracle, Salesforce, and IBM. The article identifies this as "tech extensity," where firms become ungovernable due to systemic embedding and eroded regulatory friction. Europe's current procedural tools, such as GDPR fines or the DMA, are failing, with uncollected fines and threats from major tech companies. A dual-track approach is proposed: "build" domestic industrial capacity, including funding the stack and attracting talent, and "constrain" US Big Tech structurally through market-shaping standards, moving beyond ineffective fines.

Key takeaway

For EU policymakers grappling with digital sovereignty, your current reliance on procedural regulations against extensive US tech firms is proving ineffective. You must shift towards a dual-track approach: aggressively build domestic AI and cloud infrastructure, and structurally constrain Big Tech through market-shaping standards, not just fines. This decisive action is crucial to avoid becoming a digital vassal and secure Europe's technological future.

Key insights

Europe's digital sovereignty is threatened by its structural dependency on US Big Tech and its frontier AI models.

Principles

• Tech extensity creates systemic dependency.
• Eroding friction undermines governance.
• Sovereignty demands control over AI stack.

Method

Europe must pursue a dual-track strategy: "build" domestic industrial capacity for AI and cloud, and "constrain" extensive US tech firms structurally via market-shaping standards and defaults.

In practice

• Onshore capacity using Chips Act powers.
• Preference compliant European firms in procurement.
• Implement market-shaping standards like USB-C.

Topics

• AI Governance
• Digital Sovereignty
• EU Industrial Strategy
• Big Tech Regulation
• Export Controls
• Frontier AI Models

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Editorial summary, takeaway, and curation by AIssential. Original article published by Privacat Insights.