European leaders are debating how to limit the influence of large tech companies and promote European firms in the tech sector. A report indicates that the EU may allow companies like Elon Musk’s Starlink and Amazon’s low-earth-orbit satellite operations to acquire valuable mobile satellite spectrum. However, most of the available frequencies will be set aside for European businesses. A decision regarding cloud services is expected on June 3, aimed at reducing the power of U. S. companies like Amazon, Google, and Microsoft, which together hold a significant share of the global cloud market.
This push to elevate European tech companies comes amid worries about the technological advancements of China and the dominance of U. S. firms, particularly given the current uncertain relations between Europe and the U. S. Opinions among EU officials vary; some advocate for strong measures to enhance Europe’s tech capabilities, while others express concern about possible backlash from the U. S. and the implications for European industry.
In contrast, Finnish EU tech chief Henna Virkkunen suggests implementing clear regulations that apply to all firms rather than excluding non-European companies. The European Commission has not responded to inquiries from various EU officials involved in the discussion.
There is also a significant investment gap, with a €1 trillion disparity compared to the U. S. in cloud infrastructure, underscoring Europe’s vulnerability to being cut off from critical technology. The upcoming Cloud and AI Development Act is anticipated to limit access for big U. S. tech firms, particularly in sensitive government projects.
On June 3, the EU will introduce a new process for allocating mobile satellite service spectrum, which could favor European entrants like OVHCloud and Deutsche Telekom, while potentially restricting Starlink. The CCIA lobby group has warned that excessive protectionism could limit consumer choice. Feedback from EU nations will be necessary for the mobile satellite spectrum proposal, while discussions around the Cloud and AI Development Act will continue with EU countries and Parliament.
With information from Reuters
