Google Opposes EU Sovereignty Push

What happened

Google warned European Union regulators that "tech sovereignty" policies undermine regional competitiveness. The company argued that restricting US technology firms blocks access to global innovation. This follows European Central Bank flagging US tech risks in November 2025. EU currently prioritises domestic AI and quantum computing investment to reduce foreign reliance. Google claims these protectionist measures create barriers to software ecosystems. Warning coincides with ongoing hurdles for EU AI Act and shifting US trade policies.

Why it matters

Founders and CTOs face higher infrastructure costs because sovereignty mandates exclude US-based cloud and AI providers. Procurement teams face restricted vendor choices, creating divergence from US markets where tech giants recently received chip tariff exemptions. This pattern follows EU AI Act implementation hurdles. Resulting barriers prevent architects from using optimised global stacks, locking them into less mature regional alternatives. Consequently, European software firms risk falling behind in global AI race due to limited tool access.