When American Tech Giants Pull the Plug: The Growing Threat to European Digital Sovereignty

Over the past three years, European organisations have witnessed an alarming pattern: American technology companies repeatedly restricting, threatening to withdraw, or fundamentally altering services for European customers. These disruptions highlight a critical vulnerability in Europe's digital infrastructure—one that regulatory compliance alone cannot solve.

The Cloud Act Shadow: Microsoft's European Concessions

Microsoft's relationship with European cloud providers has been fraught with tension since 2022. The tech giant faced formal complaints to the European Commission over anti-competitive licensing practices that effectively forced customers onto Azure infrastructure. In March 2023, Microsoft changed its cloud licensing policies to avoid an EU antitrust probe, and by July 2024, paid €20 million in settlements to European cloud providers.

More concerning still, Microsoft confirmed in a statement to a French court that it could be legally compelled by US authorities to hand over data from EU organisations under the US CLOUD Act. Whilst Microsoft launched its EU Data Boundary initiative in January 2023—promising to store and process EU customer data within European borders—the fundamental issue remains: ultimate control still rests with a US-based entity subject to American legal jurisdiction.

The European Data Protection Supervisor found multiple infringements in the European Commission's own use of Microsoft 365, requiring corrective measures throughout 2024. This investigation revealed concerning gaps in purpose limitation, international data transfers, and unauthorised disclosures of personal data—issues that took over a year to remedy.

Meta's "Pay-or-Consent" Ultimatum

In February 2022, Meta threatened to shut down Facebook and Instagram across Europe entirely if it couldn't continue transferring user data back to the United States. The company warned that without the ability to process European user data in American data centres, it would have no choice but to withdraw services affecting hundreds of millions of European users.

By 2024, Meta introduced a controversial "pay-or-consent" model, forcing European users to either pay subscription fees or accept extensive data harvesting. The European Commission found this violated the Digital Markets Act, with Meta receiving a €200 million fine for non-compliance between late 2023 and late 2024. The company eventually agreed to offer EU users reduced data sharing options—but only under sustained regulatory pressure.

Throughout 2023 and 2024, Meta's regulatory troubles escalated, including multiple GDPR fines totalling over €2 billion for data breaches and inadequate consent mechanisms. These incidents demonstrate how European organisations relying on Meta's platforms remained vulnerable to sudden policy changes dictated by American corporate interests rather than European values.

Amazon's "Sovereign Cloud" That Isn't Quite Sovereign

AWS launched its European Sovereign Cloud in January 2025, marketed as physically and logically separated infrastructure operated entirely within the EU. However, critics immediately questioned whether genuine sovereignty was achievable when the European company remains 100% owned by a US-based Amazon entity.

As European cybersecurity experts noted, "What is being presented here is a classic smokescreen—not genuine digital sovereignty." The fundamental problem: the CLOUD Act remains fully valid. AWS acknowledged that whilst there have been "no data requests that have resulted in the disclosure of content stored outside the USA" since 2020, this doesn't mean such requests cannot occur in the future.

AWS's admission that it could "theoretically be forced to hand over data" under US legal authority exposes the illusion of sovereignty. European organisations requiring true digital autonomy cannot achieve it through US hyperscalers, regardless of where the physical infrastructure sits.

Google's Compliance Burden

Google Cloud has similarly faced European regulatory challenges, though primarily around compliance with new frameworks like NIS2, DORA, and the EU Data Act. Whilst Google hasn't threatened service withdrawals, the company's approach demonstrates how US providers treat European regulatory requirements as obstacles to manage rather than principles to embrace.

Google filed an antitrust complaint against Microsoft in September 2024, highlighting how even American competitors recognise the anti-competitive pressures European customers face when locked into US cloud ecosystems.

Starlink's Geopolitical Complications

SpaceX's Starlink satellite service has demonstrated how US companies can unilaterally restrict access based on corporate or geopolitical considerations. In 2024, Starlink began enforcing restrictions on users in unauthorised countries, with the company cracking down on Mobile-Regional plan users who exceeded two-month stays outside their activation country.

France's regulatory authority annulled Starlink's frequency licence in April 2022 for procedural failures, whilst concerns emerged about Russian forces potentially accessing Starlink terminals in Ukraine despite the service being officially prohibited there. These incidents reveal how satellite infrastructure operated by US companies introduces sovereignty vulnerabilities beyond traditional cloud services.

Social Media Platforms: TikTok and X Under Scrutiny

TikTok faced bans on European government devices throughout 2023, with the European Commission, European Parliament, and multiple member states prohibiting the app over cybersecurity and data protection concerns. By February 2024, the EU opened formal proceedings investigating TikTok for Digital Services Act violations regarding illegal content and protection of minors.

X (formerly Twitter) has seen declining European usage since late 2022, with EU Digital Services Act data showing a 5% decline in the first half of 2024. The platform faced DSA investigations over distribution of illegal content and ineffective measures combating disinformation.

The Sovereignty Risk: Why European Organisations Must Act

These incidents collectively illustrate a fundamental truth: relying on US technology providers creates dependencies that expose European organisations to:

• Legal jurisdiction risks under the US CLOUD Act, which compels American companies to provide data regardless of where it's stored

• Sudden policy changes driven by US corporate interests or regulatory pressures rather than European requirements

• Service withdrawal threats when European data protection laws conflict with American business models

• Vendor lock-in through anti-competitive licensing practices that make migration prohibitively expensive

• Geopolitical vulnerabilities where access can be restricted based on foreign policy considerations

For organisations subject to NIS2, DORA, and the Critical Entities Resilience Directive, these risks aren't merely theoretical—they represent material compliance failures that could result in significant penalties and operational disruption.

How Sovereign Sky Delivers True Digital Sovereignty

Sovereign Sky specialises in helping European organisations achieve genuine digital autonomy through:

Sovereignty Assessments: We evaluate your current dependencies on US hyperscalers across the European Commission's five sovereignty dimensions—jurisdictional, operational, technical, supply chain, and data sovereignty—providing clear scoring and remediation roadmaps.

Migration Planning: Our team designs practical migration strategies from AWS, Azure, and Google Cloud to European sovereign providers like OVHcloud, Scaleway, and IONOS, ensuring business continuity whilst eliminating CLOUD Act exposure.

Regulatory Compliance: We align your cloud strategy with NIS2, DORA, and CER requirements, demonstrating to regulators that you've implemented appropriate controls over digital operational resilience.

Architecture Design: We build cloud-native architectures on European infrastructure that match the functionality of US hyperscalers whilst maintaining complete jurisdictional control.

Governance Frameworks: We establish controls ensuring your organisation maintains visibility and authority over all data processing activities, with European legal protections embedded by design.

The Path Forward

The past three years have demonstrated conclusively that European digital sovereignty cannot be achieved through contractual assurances from US technology providers. True sovereignty requires European infrastructure, European legal jurisdiction, and European operational control.

As regulatory requirements intensify and geopolitical tensions increase, European organisations face a stark choice: continue accepting the risks of US dependency, or invest in genuine digital autonomy. Sovereign Sky exists to make that transition achievable, ensuring European organisations can leverage world-class cloud capabilities without compromising their sovereignty, security, or regulatory compliance.

The question is no longer whether to pursue digital sovereignty—but how quickly you can achieve it before the next American tech giant restricts access to European customers.

Contact Sovereign Sky to schedule your complimentary digital sovereignty assessment and discover how we can help your organisation eliminate dependencies on US cloud providers whilst maintaining operational excellence.