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Digital Economy

The US Cloud Act and European Dependency

IK
Ibrahim Kessenich
Intern
September 8, 2025

The digital world is no longer an exotic side issue, but rather the foundation of our everyday lives. Government agencies, businesses, and even our private lives increasingly rely on stable IT systems. But while these systems bring us enormous benefits, one problem is becoming increasingly apparent: In Europe, we are far from having true sovereignty over our digital infrastructure.

What is Digital Sovereignty?

A city at night, looking up a building from the other side of the road.

Digital sovereignty refers to the ability to use technologies and data independently, autonomously, and under one's own legal framework. It is therefore not just a matter of technical security, but also of political and legal control over who can access our data and under what conditions.

A simple example illustrates this clearly: if a German authority stores sensitive information with a US provider such as Microsoft, Amazon, or Google, this data is still subject to the US Cloud Act despite being located in Germany. This means that US authorities can force access – even if this violates European data protection principles such as the GDPR, which, as the General Data Protection Regulation, sets a uniform and high standard for the protection of personal data in the EU. In such cases, there can be little talk of genuine sovereignty.

The US Cloud Act

The US Cloud Act (Clarifying Lawful Overseas Use of Data Act) is a law passed in 2018 that gives US authorities far-reaching powers. It obliges US companies to hand over data, regardless of where it is stored. This means that even information stored in data centers in Germany or other European countries can be requested by US authorities as long as they are operated by a US company.

The Cloud Act directly conflicts with European data protection laws such as the GDPR. While these strictly regulate access to personal data and generally prohibit the transfer of data to third countries without a clear legal basis, the Cloud Act allows precisely this. This creates a structural conflict: it is legally uncertain for companies and authorities in Europe to use services from US providers, as they are subject to both European and US laws.

As a result, neither government agencies nor private companies can be truly sure that their data is subject exclusively to European protection standards. This is precisely where we see how closely digital sovereignty and data sovereignty are linked.

What is the Problem with the Current Situation?

Germany and Europe are heavily dependent on international tech companies. This dependence is evident on several levels. At the legal level, there are constant conflicts because the Cloud Act directly contradicts the GDPR. Authorities and companies that work with customer data find themselves in a gray area—or even in illegality—where they can never be sure whether their data storage actually complies with European data protection regulations. At the political level, this heavy dependence means vulnerability, because digital infrastructures can quickly become a means of exerting pressure in the event of geopolitical tensions. And finally, an imbalance is also created at the economic level: billions flow into the coffers of international corporations every year, while European and other providers have little chance of competing with this market power.

The consequence is clear: we benefit from highly developed technologies, but we pay for them with dependence – and with an increasing loss of control over the foundations of our digital society. Added to this are long-term negative economic consequences due to the monopoly-like position of US providers, which prevent free and fair competition in the digital industry.

How could the Problem be Solved?

The Flag of the EU in the wind. In the Background you can see the blue sky.

The solution does not lie in radically abandoning international technologies, but rather in finding a realistic middle ground. Neither total dependence nor complete self-sufficiency can be achieved in the short term. Instead, a hybrid approach is needed. European initiatives such as GAIA-X and independent providers must be specifically promoted in order to develop viable alternatives. At the same time, legal clarity is needed: Critical data from public authorities should only be allowed to be stored by providers that are subject to European laws. Open-source technologies can also play a key role here, as they enable transparency and verifiability and prevent dependencies on individual manufacturers. In addition, the use of international clouds should be consciously graded according to risk: While they may be practical for non-critical data, sensitive information must remain in sovereign infrastructures.

What does ViOffice do in this Context?

Since its founding, ViOffice has pursued the goal of enabling digital collaboration on an independent and privacy-friendly basis. Our platform is based entirely on open-source technologies, is operated in German data centers, and is subject exclusively to German and European legal frameworks. All applications used are open source and therefore completely transparent: it is possible to see at any time which functions the respective software offers and which background processes are running.

This allows us to offer a genuine alternative: modern tools for collaboration and communication that also respect and protect our users' data sovereignty. We believe that this is the only way to achieve sustainable digital sovereignty.

Conclusion

Digital sovereignty is more than just an abstract buzzword—it is a fundamental prerequisite for the ability of states, companies, and citizens to act in the 21st century. Between technological pragmatism and the legitimate desire for independence, it is important to chart a clear course.

Europe must have the courage to develop and promote its own alternatives without isolating itself from global developments. ViOffice wants to be part of this journey – with solutions that combine transparency, data protection, and user-friendliness.

#digital-economy#netpolitics#security

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