Source: Politico
The EU's push for digital sovereignty confronts a structural problem: AWS, Azure, and Google Cloud control 70% of European cloud infrastructure, while American software vendors capture 80% of enterprise spending—market shares built on technical lock-in and switching costs that policy alone cannot dislodge. European champions like OVHcloud and Gaia-X exist but lack the scale, interoperability, or developer ecosystems to compete meaningfully, meaning regulatory pressure (DMA, GDPR) may constrain US vendors more than build credible alternatives. EU policymakers face three paths: accept continued dependency on US infrastructure, invest billions in uncompetitive domestic players, or negotiate carve-outs that fragment the digital market further.