The European Union on Wednesday unveiled its “technological sovereignty” package, which includes the Cloud and Artificial Intelligence Development Act and Chips Act 2.0. The initiative seeks to bolster Europe’s technological independence by reducing reliance on foreign technology.

The chips act favors “European-made” chips and seeks to create a closed digital ecosystem, which could fragment global supply chains. The Computer and Communications Industry Association’s Senior Vice-President and Head of Office Daniel Friedlaender called the cloud and AI development act “a direct recipe for fragmented discrimination across Europe in 27 different ways”.

The new law would be “effectively giving national capitals carte blanche to shut out trusted global vendors from every major technology-producing nation outside the union”, he warned.

The EU’s focus on “technological sovereignty” reflects a trend of some EU nations moving away from free, open........

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