Europeans Turn to Local Digital Services Amid U.S. Tech Firms’ Political Shift and Privacy Concerns

/in /tarafından

As former President Donald Trump’s second term unfolds, many Europeans are increasingly distancing themselves from U.S. tech giants, driven by political unease and growing concerns over digital sovereignty and data privacy.

In Berlin, volunteers at a charity-run market stall by Topio are helping people remove Google services from their smartphones, installing alternative Android versions without Google integration. Michael Wirths, Topio’s founder, said the people now seeking help are no longer just privacy advocates, but politically aware individuals who feel exposed by continued reliance on American tech.

Interest in European digital alternatives has surged in recent months. According to Similarweb, usage of non-U.S. email, search, and messaging services has seen notable growth. Berlin-based Ecosia, an environmentally focused search engine, reported a 27% year-on-year increase in EU traffic, capturing 1% of Germany’s search market. Meanwhile, Swiss-based ProtonMail saw an 11.7% rise in European users, while usage of Google’s Gmail dropped by 1.9%.

The backdrop to this trend includes Trump’s renewed isolationist rhetoric, a U.S. trade war with Europe, and a cooling of transatlantic diplomatic ties. Prominent U.S. tech CEOs including Elon Musk, Jeff Bezos, Mark Zuckerberg, and Sundar Pichai appeared at Trump’s second inauguration, fuelling public concern in Europe over the political alignment of these firms. Musk, previously an adviser to Trump, fell out with the president, but his close past association left an impression.

Digital sovereignty—a call for Europe to reduce dependency on foreign tech—has gained traction. British tech experts report average users, including hairdressers, are asking about alternatives to U.S. services. British software engineer Ken Tindell said his family is deliberately reducing reliance on American platforms, citing inadequate U.S. privacy laws.

The policy climate has further inflamed tensions. U.S. Vice President JD Vance accused Europe of suppressing free speech, while Secretary of State Marco Rubio threatened visa bans for officials who “censor” Americans, potentially including regulators enforcing EU digital laws. U.S. firms like Meta have criticized Europe’s Digital Services Act (DSA), claiming it censors content. However, EU officials argue the DSA is intended to curb online abuse and misinformation.

Privacy experts like Greg Nojeim confirm that European concerns are valid. U.S. laws allow the government broad access to data, even if stored outside the U.S. but managed by American companies.

European governments are beginning to act. Germany’s coalition government has pledged to shift toward open-source software and EU-based cloud services. In Schleswig-Holstein, all public IT systems must use open-source tools. Meanwhile, Berlin funded Ukraine’s use of France’s Eutelsat satellite service over Musk’s Starlink.

Still, completely severing ties with U.S. tech remains unlikely. Infrastructure dependencies—such as content delivery networks and cloud platforms—are largely U.S.-controlled. Ecosia and France’s Qwant still partially rely on Bing and Google for results, and cloud hosting often comes from the very firms they seek to avoid.

Nevertheless, grassroots movements persist. Reddit’s BuyFromEU group has over 200,000 members encouraging users to switch to EU tech alternatives. Messaging app Signal, although U.S.-based, saw a 7% rise in EU use in March, while WhatsApp usage stagnated.

Despite the push, digital rights experts caution that voluntary shifts alone won’t significantly dent Silicon Valley’s market hold. “The market is too captured,” said activist Robin Berjon. “Regulation is needed as well.”

Google Proposes Tweaks to Search Results to Avoid EU Fine Under Digital Markets Act

/in /tarafından

Google has offered new concessions to the European Union in an effort to avoid potentially steep antitrust penalties, according to documents reviewed by Reuters. The tech giant’s latest proposal seeks to address concerns that it has been unfairly favoring its own services—like Google Shopping, Google Hotels, and Google Flights—over those of competitors, in violation of the EU’s Digital Markets Act (DMA).

The DMA, which came into force earlier this year, establishes strict requirements for dominant tech companies—or “gatekeepers”—to ensure fair competition and increased consumer choice. The European Commission formally charged Google three months ago, citing anti-competitive practices in vertical search results.

In response, Google has suggested offering a dedicated box at the top of its search results page to showcase a selected third-party vertical search service (VSS), such as platforms specializing in hotel or flight searches. This VSS would be chosen using objective, non-discriminatory criteria and would display three direct links—such as to hotels, airlines, or transport services—formatted identically to Google’s own listings.

Other competing VSS platforms would still be displayed lower in the rankings, but only in expanded view if users click to see more results. Google stated in the documents that while it does not agree with the Commission’s preliminary findings, it is willing to make changes “on a without prejudice basis” to reach a resolution.

The European Commission has called for a feedback meeting with rivals on July 8. Some competing companies told Reuters—on condition of anonymity—that the proposed changes fall short and do not ensure genuine parity with Google’s own offerings.

This is not Google’s first encounter with the EU on similar grounds. In 2017, the company was fined €2.4 billion for giving illegal advantage to its comparison shopping service. The current proceedings under the DMA could result in further significant penalties if the EU deems Google’s remedies insufficient.

Musk’s xAI Raises Yield and Extends Deadline on $5B Debt Sale Amid Weak Investor Demand

/in /tarafından

Elon Musk’s AI venture, xAI, has extended the deadline and increased the yield on a $5 billion debt offering due to a lackluster response from investors, according to a source familiar with the matter. The commitment deadline was moved from Tuesday to Friday to allow more time for investor participation.

To make the offer more appealing, xAI raised the yield on $3 billion in bonds and a $1 billion term loan from 12% to 12.5%. Additionally, the yield on a second term loan was increased from 700 to 725 basis points above the Secured Overnight Financing Rate (SOFR), with that loan now priced at 96 cents on the dollar.

The move reflects investor concerns over xAI’s unrated status and limited financial transparency, which increases perceived risk. As of Thursday, the average yield on high-yield bonds was 7.6%, according to the ICE BofA High Yield Index—significantly lower than what xAI is offering, signaling its need to compensate for higher investor uncertainty.

If demand remains modest, borrowers like xAI must offer better terms to attract buyers. One portfolio manager who chose not to participate noted that healthy deals are typically oversubscribed multiple times, and the increased yield suggests investor hesitancy.

Morgan Stanley, the lead on the transaction, did not commit to underwriting or backstopping the deal—unlike during Musk’s acquisition of Twitter—making this a “best efforts” transaction. If the offering closes Friday, securities are expected to be distributed to investors by Monday.

Earlier this month, the xAI deal entered the spotlight amid a public exchange between Musk and former U.S. President Donald Trump on social media. Despite Musk’s profile and past financial dealings, this offering has yet to capture strong enthusiasm from the high-yield or leveraged loan markets.

Neither xAI nor Morgan Stanley responded to requests for comment.