This is a Danish blindspot, Europeans do not trust their governments in large (France is fractured, Southern Europe has endemic corruption, Germany is increasingly authoritarian in order to keep heterodox parties out) and this is in part the source behind the flare up of "far-right" movements in the continent. The infamous EU chat law doesnt help either, and all the abuses of Germany in their misuse of hate speech to punish speech is not a positive development. We do not have real alternatives to most American tech services, and administrations are unwilling to move to Linux based alternatives.
The EU is also not interested in strengthening the domestic software market by engaging in selective protectionism like the Chinese, because of the extensive lobbying by foreign and domestic actors which are the incumbents and see no interest in a competitive and dynamic environment which would destroy them.