Do Foreign Governments Need American Tech?

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What is the main topic discussed in this episode?

Unknown 0:03
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What recent actions has France taken regarding American tech?

Luke Vargas 0:31
Hey, What's News listeners, it's Sunday, February 22nd. I'm Luke Vargas for The Wall Street Journal, and this is What's News Sunday, the show where we tackle the big questions about the biggest stories in the news by reaching out to our colleagues across the newsroom to help explain what's happening in our world. And this week, do foreign governments need American tech? Last month, France ordered government workers to stop using Teams, Zoom, Skype, GoToMeeting and WebEx, claiming that their proliferation had made France dependent on non-European actors. And instead, government workers were to use a homegrown communication tool developed by the French state.

What does digital sovereignty mean for European countries?

Luke Vargas 1:08
The move is just the latest example of a growing tech sovereignty trend as countries seek to build their own digital technologies from communications platforms to AI systems, cloud networks, or even chips, and reduce their dependence on the U.S. private sector. Coming up, we'll speak to the man leading France's digital sovereignty push and talk to journal tech reporter Sam Schechner about what it could all mean for Silicon Valley. Let's get right to it. Well, the French state may be eager to cut the cord on Silicon Valley, but will digital sovereignty actually become more than a slogan? And what's at stake here for U.S. tech? Journal tech reporter Sam Schechner joins me now. Sam, set the scene for us.
Luke Vargas 1:51
What is digital sovereignty and why is everyone in Europe these days talking about it?

How does France's tech sovereignty push impact U.S. tech companies?

Sam Schechner 1:56
Well, something does seem different in the air right now. Certainly after the dust-up that maybe isn't quite over around Greenland, and in general since the arrival of President Trump, I think leaders in Europe have really started to question this transatlantic relationship, which, while at times tense, has always been friendly enough to say when push comes to shove, we can rely on their tech. And now in recent weeks, you start to hear more seriously this conversation of like, well, what would we do if our tech was cut off, if we no longer had access to our email or to our cloud storage or to all of these things that American companies provide in Europe?
Luke Vargas 2:44
I mean, is there actually any risk of that?
Sam Schechner 2:46
Well, the thing that these countries are confronting is that it is a very, very big lift to separate from U.S. tech. The dependency is just so enormous, not just in Europe, but throughout the Western world, that we're talking a project of decades, not something that you can do over the course of a few months. And so an announcement like what France has done with new video conferencing software, or they have a kind of Google Docs replacement, I mean, those are achievable things, right, to get your government

What challenges do European nations face in achieving tech independence?

Sam Schechner 3:17
you know, bureaucrats and other ministries working on a homegrown solution. And it's probably smart because if stuff did get cut off, you really don't want your government to be totally without any solutions. And if you look at the market share just for cloud services, cloud infrastructure in Europe, you know, big data centers, what you have is the top five American providers have something like 83% market share, according to IDC. That's something that's gonna take a long time to shift.
Luke Vargas 3:48
I mean, situate for us what we believe the vibe to be in Silicon Valley responding to all this.
Sam Schechner 3:53
I mean, I think they take it super seriously. Europe represents for these big companies upwards of a quarter of their revenue. I mean, it's no joke. It would be a bloodbath if they were cut off somehow from Europe.

How is France planning to implement its new video conferencing solution?

Sam Schechner 4:04
And this has been the case for quite some time. So they take it very seriously. And that's why they invest so heavily in Europe. So much infrastructure, so much staff.

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