Europe faces billions‑level cost due to US‑China digital dependence

Europe’s digital infrastructure remains heavily dependent on American and Chinese technology built over the past four decades. Core software such as Windows, macOS, iPhone, Android, Office and cloud services from AWS dominate every layer of the digital stack, creating a network effect that reinforces this reliance. In 2025 the five U.S. tech giants (GAFAM) accounted for roughly €2 trillion in global revenue, while European spending on cloud and software reaches €264 billion annually – about 83 % of which goes to non‑European providers. European software leaders like Germany’s SAP (€36.8 bn) and France’s Dassault Systèmes (€6.2 bn) together with the continent’s top‑100 editors total only about €41 bn. This imbalance translates into a hidden transfer of value amounting to tens of billions of euros each year, with a study estimating a €140 bn extra cost for Europe by 2030 if competition does not improve. The analysis highlights that while Europe cannot match the scale of the U.S. or China in data and user base, strategic policy and cultural approaches may mitigate the long‑term economic impact of this digital dependency.