The EU’s Tech Sovereignty Package: what it means for business

Overview

On 3 June 2026, the European Commission released its long-anticipated technological sovereignty package – a four-part initiative comprising the Chips Act 2.0, the Cloud and AI Development Act (CADA), an EU Open Source Strategy, and a Strategic Roadmap for Digitalisation and AI in Energy. For companies operating in or seeking access to the European market, this represents a structural shift in how the EU intends to shape procurement, investment and competitive conditions across the digital economy – not merely incremental regulatory development.

Europe has historically pursued a regulatory model of sovereignty – GDPR, the DSA, the DMA, the AI Act – excelling at setting standards and binding foreign companies to its values. The Commission now recognises the structural gap cannot be closed by regulation alone: more than 80% of Europe’s digital products, services and infrastructure rely on non-EU providers, three US hyperscalers control over 70% of the EU cloud market, and Europe consumes nearly 20% of global semiconductor output while producing only around 9%. The package is designed to address those investment and industrial failures directly.