European businesses are increasingly scrutinizing their reliance on American technology, raising concerns about control and sovereignty. The European Commission has introduced measures to address this, including the Cloud Sovereignty Framework, which evaluates providers on 48 criteria. This framework, initially for public procurement, is also encouraged for private organizations. The proposed Cloud and AI Development Act would further extend these assessments, with higher requirements for more sensitive uses.
American tech companies face a growing challenge in maintaining credibility and trust. European customers are no longer just interested in what the technology can do but also in what providers can guarantee during political changes. Microsoft, for example, has committed to challenging any government order to suspend its European cloud operations through legal avenues. The company has also outlined continuity arrangements with European partners and backup code storage in Switzerland.
The European Commission's sovereignty framework also considers the extent of investment, jobs, and value creation within the EU and European Economic Area. Edelman's 2026 Trust Barometer found that people trust companies headquartered in their own country more than foreign ones. In Germany, 63 percent trusted German-headquartered companies compared to 34 percent for foreign ones. Long-term community investment and local hiring were identified as key factors in earning trust.
As sovereignty becomes measurable, companies risk accusations of 'sovereignty-washing' if they cannot clearly articulate their dependencies. The credibility of a company's European commitments depends on the operating arrangements and protections behind them. Communications leaders play a crucial role in helping organizations anticipate and meet customer concerns and public trust expectations.