It's largely a political issue. At this stage you can't create alternatives to Google and other U.S. tech giants without removing them from the market (so essentially the Chinese approach, which has allowed them to build their own massive tech giants). But that path is nearly impossible for the EU due to the risk of U.S. retaliation. The EU can't even implement a digital tax.

You also can't just say, "Here's a few hundred billion in public support to create alternatives to U.S. tech giants", because the U.S. would argue that it's unfair state aid and retaliate.

There isn't enough private capital in the EU with the risk tolerance required to take on such a challenge independently.

We also lack a reserve currency like the USD, so we can't print $2 trillion a year, much of which ultimately flows into the U.S. stock market and further boosts U.S. tech companies, making competition even harder.

EU markets are already fully penetrated by U.S. behemoths that can either withstand or acquire any privately funded competitor, thanks to their massive cash flows and valuations.

For all these reasons, the outlook isn't very promising.