At the Web Summit 2024 in Lisbon, Portugal, tech industry leaders from Europe came together to discuss the future of the tech sector in light of the U.S. presidential election. With Donald Trump poised to begin his second term, European tech CEOs are calling for a “Europe-first” mentality to protect and promote European innovation, especially in response to the long-standing dominance of U.S. Big Tech giants like Google, Apple, Amazon, and Microsoft.

Andy Yen, CEO of Proton, a Swiss VPN service, emphasized the need for Europe to adopt a more aggressive stance on technology and regulation. Yen called on European leaders to act boldly in the face of U.S. technological supremacy, advocating for policies that would help the continent reclaim its technological sovereignty. Yen’s message, echoing sentiments often expressed by America-first rhetoric, stressed the importance of European self-reliance in critical technologies like artificial intelligence (AI), cloud computing, and smartphones.

Yen’s remarks were echoed by Thomas Plantenga, CEO of Vinted, a popular Lithuanian-based app for used clothing. Plantenga urged Europe to take the "right choices" in technology and innovation, ensuring that the continent does not get left behind as global powers like the U.S. and China continue to dominate the tech landscape. According to Plantenga, Europe must focus on self-sufficiency in areas like AI, energy, and sustainable technologies, while fostering collaboration to strengthen the region as a global tech player.

Another central theme that emerged at the conference was the idea of AI sovereignty. With Microsoft’s increasing role in AI through its backing of OpenAI and the integration of AI into its products, concerns have grown that Europe may become overly dependent on U.S. technology companies. The push for localization of AI services was seen as crucial for ensuring that Europe could develop its own AI infrastructure, tailored to regional languages, cultures, and values.

Mitchell Baker, former CEO of Mozilla, shared insights into the effectiveness of the EU's Digital Markets Act (DMA), which aims to curb the monopolistic power of tech giants. She highlighted how recent changes, such as the introduction of a "choice screen" on Android devices, had positively impacted the usage of browsers like Firefox. Despite these successes, Baker noted that the broader issue of centralized power in the tech industry remains unresolved, stressing the need for further regulatory reforms to promote fair competition and ensure that smaller players can thrive.

For smaller companies like Ecosia, a sustainable search engine, the influence of U.S. tech firms has already led to anti-competitive behavior. Christian Kroll, CEO of Ecosia, explained how Microsoft's pricing changes for its Bing Search APIs had severely impacted their ability to generate revenue, highlighting the competitive pressures faced by startups reliant on U.S. infrastructure.

AI regulation is now a key battleground, with the EU’s AI Act set to have far-reaching implications for how AI is developed and used in the region. The Act is particularly targeted at large U.S. tech companies, which dominate the global AI landscape. However, with Trump's return to power, there is uncertainty about how the U.S. will respond to Europe's regulatory efforts. Some European leaders fear that a tough stance on tech could provoke trade retaliation, weakening Europe's negotiating position.

As the EU pushes for stronger regulatory frameworks, the question remains: can Europe step up to counterbalance U.S. tech giants, or will it continue to play catch-up in the global tech race?

In response to these concerns, Shelley McKinley, Chief Legal Officer of GitHub, emphasized the need for businesses to prepare for various scenarios, as the future of global tech regulations remains uncertain with the shift in U.S. leadership. As Europe and the U.S. brace for the coming changes, the next few months will be pivotal in determining the future of international tech policies.

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