UK companies face critical risks from heavy reliance on US tech

New research has found that the UK private sector overwhelmingly depends on US technology to operate essential systems, with 88% of publicly listed companies relying on American services.

Widespread reliance

Proton conducted a study into email service providers used by companies across the UK, Ireland, France, Portugal, and Spain as an indicator of wider technological dependence. In the UK, the analysis revealed that a striking 88% of companies utilise American-owned email providers to manage vital communications and data infrastructure.

This pattern of reliance is also prevalent in other European countries. Proton's research noted 93% of Irish companies, 66% in France, 72% in Portugal, and 74% in Spain are using US-based email platforms. Email infrastructure, described as a core component of a company's operations, enables communication, stores data, and supports employee identification, placing control of important assets in the hands of foreign firms.

Critical sectors

The study further identified that the UK's largest and most strategic sectors are among the most exposed to this dependency. In sectors such as banking and telecommunications, 95% of publicly listed companies depend on American technologies. Publicly listed utilities companies show an 89% reliance, while the transportation and energy sectors follow suit with 88% and 83%, respectively, using US email providers.

Even the UK's own technology industry, valued at USD $1.1 trillion and ranking as the third largest globally, demonstrates high dependency. Research indicates that about 94% of software and services companies and 82% of technology hardware firms listed in the UK use US platforms. The study highlighted that this dependence means significant portions of local talent and financial resources are directed towards Silicon Valley rather than being reinvested in domestic capability.

Effects on sovereignty

The findings underline long-term issues surrounding Europe's approach to technology procurement. The region has generally chosen to purchase overseas solutions rather than invest locally, which has led to what the report calls a "dangerously over-reliant" posture on US technology. Analysts suggest this approach poses risks to Europe's digital sovereignty, as it limits the continent's control over strategic data, innovation, and economic direction while exposing it to vulnerabilities associated with external providers.

Proton's research suggests this pattern of dependence is a strategic concern. The firm warned that inability to react independently to international crises-particularly where technology services controlled by foreign entities might become compromised-could weaken Europe's response during economic or political shocks.

Data and economic concerns

The study points to the danger of single points of failure in essential infrastructure, such as email services. Disruptions, whether technical or geopolitical, could have knock-on effects for both business continuity and national security.

Years of complacency have resulted in Europe's widespread use of US tech, jeopardising our digital sovereignty and autonomy. For too long, we've opted for convenience over control, allowing foreign entities to dictate our technological landscape. This dependence limits our ability to safeguard our data, to drive local innovation, and to protect our strategic interests. It's about time Europe takes decisive action to reclaim its digital destiny. We must invest in local technologies, foster national expertise, reduce our vulnerability to external influences, and think Europe first; otherwise, Europe will soon become obsolete, a relic of the past.

Calls for policy change

The report advocates for a "Europe First" approach as a means of regaining control over technological infrastructure. Proton asserts that promoting local digital solutions would encourage innovation, create jobs, and support ecosystems that align more closely with European values and regulatory requirements. The report also notes that prioritising home-grown and open-source initiatives could reduce risks related to privacy, service continuity, and foreign legal jurisdiction.

Email infrastructure is presented as just one facet of a broader technological dependence. Proton has stated its intention to monitor and report on further digital dependencies in Europe, with the aim of identifying opportunities for enhancing autonomy. The research is framed not just as an analysis of the current situation, but as a call to action for European companies and policymakers to address these strategic vulnerabilities.