FT : Google warns EU against ‘erecting walls’ in tech sovereignty push

Google warns EU against ‘erecting walls’ in tech sovereignty push
Europe risks undermining its own competitiveness drive through curbs on US groups, tech company says

Google’s top legal officer has warned that Europe risks undermining its own competitiveness drive by restricting access to foreign technology, as Brussels steps up efforts to reduce its reliance on US tech giants.

Kent Walker, president of global affairs and chief legal officer at Google, told the FT that the EU faces a “competitive paradox” as it seeks to spur growth while “restricting the use of the technologies it needs to get there”.

“We deliver a lot of value to Europe,” he said. “Erecting walls that make it harder to use some of the best technology in the world, especially as it’s advancing so quickly, would actually be counter-productive.”

His warning comes as EU leaders on Thursday gathered for a summit in Belgium focused on how to increase European competitiveness in a more volatile global economy.

Europe’s push for greater digital sovereignty has gained new momentum in recent months, sparked by fears that US President Donald Trump’s foreign policy could force a “tech decoupling”.

On Wednesday, French AI start-up Mistral said its revenues have increased 20-fold over the past year, as it rides a growing wave of demand from European businesses for alternatives to US tech.

The bloc is set to present a “tech sovereignty package” in the spring, which aims to expand sovereign cloud solutions and reinforce Europe’s independence in software.

Walker urged Brussels to pursue “open digital sovereignty,” which would allow the bloc to “have control over key technologies, but also take advantage of the world’s best technologies”.

He suggested this could work by US companies working in partnership with European firms “that allow local control, local storage of information, local ability to make sure that we are complying with European requirements”.

Under Trump, Brussels and Washington have become increasingly at odds over the EU’s digital regulation as well as the bloc’s push to restrict social media for children.

French President Emmanuel Macron, a long-standing advocate of more digital sovereignty, said this week that further clashes between the EU and US over tech regulation were likely later this year.

Walker said he hoped such a clash could be avoided. “We’re a multinational company. As with any business, we value certainty and predictability and alignment. If we have 190 countries with 190 different rules, it’s very difficult to build software.”

Trump’s threats over Greenland also reignited calls in Europe to hit Silicon Valley with retaliatory measures had the US president followed through, especially as Europe has a large deficit with the US in services.

Walker did not comment on that possibility, saying that Google is focused on providing its services to the bloc and is “deeply committed” to Europe.

He also stressed the popularity of Google services in Europe, whether it comes to its search engine, email, translation services or maps, which European consumers often use on a daily basis.

Walker warned that Europe’s “regulatory friction” risks holding back innovation and denies European consumers and businesses access to “the best digital tools”.

Unlike Apple, the search giant is not calling on the EU to repeal its digital rule book, but is urging a “pragmatic, forward-looking approach,” especially on AI.

“The AI transition is the most competitive technology transition we’ve ever seen. The market is moving faster than the rules right now,” he said.

The Commission, which has several ongoing probes into Google, is in the final stage of talks with the company over investigations under its Digital Markets Act, which aims to level the playing field for smaller rivals.

Last year, Brussels had warned Alphabet that Google Search and its app marketplace Google Play were failing to comply with the existing rule book.

Walker said there has been “progress” in the discussions and that Google is “optimistic that we will be able to resolve those and address the concerns that have been raised, in ways that are still positive for the European economy and European consumers”.