Digital Sovereignty: Are European Solutions Falling Short Against Big Tech Giants?

Major French corporations are increasingly recognizing their dependence on foreign digital suppliers as a risk, but they often lack the tools to measure this dependency accurately. This is one of the findings from the 2026 French Innovation Ecosystem Barometer, jointly published by France Digitale and EY. For the first time, the association and the audit firm surveyed large corporations along with startups, venture capital funds, and support structures, with a section focusing on expectations ahead of the 2027 presidential election.

Digital Dependency Recognized as a Risk, Yet Poorly Quantified

The section of the 2026 barometer dedicated to large corporations is based on responses from 21 companies. Among them, 90% believe that their dependence on certain suppliers has become a risk. This consensus contrasts with the uncertainty about measuring it: 65% admit they do not know how much of their digital spending goes to non-European providers.

The report highlights a dependency similar to that seen in startups, directed at the same players. According to the barometer, “a dependency of large accounts on the same American hyperscalers is identified but still insufficiently measured”. Large corporations find themselves in an uncomfortable position, recognizing the risk in principle but without the tools to manage it, especially as the issue of European technological autonomy has become a topic of public debate in recent months.

However, the report does quantify the exposure of the surveyed startups. On average, 37% of their spending on digital tools (hosting, support, SaaS, acquisition) is with non-European suppliers. One in five companies even claims complete dependence on foreign solutions for at least one of these services.

Is There a Credible European Alternative for Large Corporations?

The report sees this awareness as an opportunity for French and European players. Large groups do not describe a market without options: only 10% cite the lack of alternatives as a reason for switching to a sovereign solution. The issue is thus less about constraints and more about making choices between performance requirements and risk reduction measures already in place.

Switching Depends on Performance

When asked what would prompt them to switch from an international provider to a French or European one, large corporations rank technical quality as the most important factor. A service of equal or superior performance was mentioned in 76% of responses, ahead of the increasing likelihood of a sudden discontinuation of non-European solutions (71%) and a favorable tax environment (57%). Technical support for migration (19%) and clarity of the offer (14%) are significantly less influential.

The competitiveness argument is also echoed by entrepreneurs. Featured in the barometer, Jean-Urbain Hubau, General Manager of Doctolib in France, adopts an assertive stance on the issue: “True sovereignty is not about withdrawal; it is a lever for competitiveness,” he asserts. For European providers, this demand for performance serves both as a barrier to entry and an open door as European alternatives increasingly mature in professional applications.

Diversification of Suppliers Already Underway

Large groups are not waiting to quantify their exposure before taking action. Diversifying suppliers is the leading strategy cited for reducing dependency risk, mentioned by 74% of respondents, followed by strengthening sectoral cooperation (68%). Partial relocation of production and investment in R&D are each noted by 42%. However, the report conditions this movement on the identification of competitive solutions, both in quality and price.

These intentions vary across different uses. Respondents identify three areas where a European origin criterion should be applied primarily:

• Artificial intelligence, mentioned by 57% of large corporations;
• The cloud, at 52%;
• Sensitive data, also at 52%.

Methodology:

The 2026 French Innovation Ecosystem Barometer was conducted by France Digitale, an association representing digital startups and investors, and by the consulting firm EY. Responses were collected between May 7 and July 28, 2026, from 255 startups, 37 venture capital funds, 45 support structures, and 21 large corporations, half of which have a turnover of more than 10 billion euros. Employment data comes from Motherbase, and the fundraising figures for the first half of 2026 are from the EY Venture Capital Barometer in France.