And you "can" compete with big tech, but it isn't actually possible. Because the right pre-requisites, environment and priorities doesn't exist. Not in Europe, not in much of the US and not in much of the world.
The European companies the would (or could) prioritize having their own digital infrastructure (mostly research or more industrial companies) are also having lay-offs, or at least not growing close to more service oriented companies that are hooked into big tech.
For the same types of reasons the US also won't bring back manufacturing.
Edit: It also reminds me of a story from some time ago in Sweden. Because of the growing number of fashion designers the press were talking about the growing fashion industry as "the fashion wonder". The then CEO of H&M commented in an interview that most of these brands were making less revenue than just one of their stores. Many of these companies are now dead or irrelevant while H&M, Zara and Shein are still around and more relevant than ever.
If there actually was even more a shift to the web from desktop it would probably benefit Google with ChromeOS. Just like a shift from Windows for software development benefited Apple and their more closed ecosystem.