Open Markets Institute: EU Must Pair Big Tech Crackdown With Tech Investment
The OMI argues that strict DMA enforcement alone cannot break the grip of U.S. hyperscalers without strategic homegrown infrastructure.
The Open Markets Institute (OMI) is calling on the European Union to aggressively pursue tech sovereignty to break its systemic reliance on U.S.-based technology giants. The organization argues that reducing dependence on these "hyperscalers" is essential to preventing a permanent digital oligopoly within the bloc.
According to OMI, the path to sovereignty requires a dual-track strategy. Max von Thun, OMI Europe Director, asserts that Europe’s response to pressures regarding digital regulation must combine tough enforcement against Big Tech with major investment in homegrown technology. This approach is detailed across OMI’s policy briefs and its publication, 'The Corner Newsletter,' which advocates for a shift away from the current market concentration.
The Regulatory Gap
At the center of this effort is the Digital Markets Act (DMA). While the DMA was designed to curb the power of gatekeeper platforms, OMI argues that the legislation requires rigorous enforcement and potential updates to effectively tackle cloud concentration. The goal is to ensure that the cloud oligopoly—dominated by firms such as Amazon, Microsoft, and Google—does not stifle the emergence of competitive, open, and local alternatives.
The Stakes for Sovereignty
European tech sovereignty is driven by urgent concerns over data privacy, economic dependence, and the strategic vulnerability of critical digital infrastructure. By relying on non-EU providers for cloud computing and AI, the Union risks becoming susceptible to external political pressure and economic rent-seeking. OMI warns that without a sovereign tech stack, the EU may find its own digital laws compromised and local innovation suppressed by the sheer scale of dominant foreign firms.
The Path Forward
To avoid a future of permanent dependence, OMI suggests that the EU must move beyond mere regulation and actively fund competitive cloud infrastructure. The focus remains on whether the EU can successfully transition from a regulator of foreign tech to a producer of its own critical digital tools. Future developments will likely hinge on how the European Commission applies the DMA to cloud services and the scale of public investment directed toward homegrown alternatives.