Tech users explore options outside American-made technology goods
In a bid to strengthen digital resilience, France, Germany, and the EU Commission will convene for a summit on digital sovereignty in Berlin on November 18. The German government aims to minimize risks for the resilience of the economies, as concerns over dependencies on digital products and services from market leaders continue to grow.
The Federation of German Consumer Organisations (vzbv) has observed a growing concern among users about data protection and dependencies on digital products and services from companies like Google, PayPal, Amazon, or Meta. Psychologists call this continued use of such products despite discomfort "cognitive dissonance."
In a representative survey, 68% of respondents expressed concern that Germany is too dependent on the USA and China in the field of AI, and 60% wanted Germany to become less dependent on US AI companies. This transition, however, could cause unnecessary costs and contribute to e-waste, according to critics.
The vzbv, an 1894-founded organisation significant in the discussion of consumer concerns about digital products and services, has also stated that many users have a "bad feeling in the pit of their stomach" not only about software and hardware from China but also about products from the US.
The summit comes at a time when many Germans are already grappling with the implications of Microsoft's decision to end free support for Windows 10 on October 14. After this date, users of the operating system will be on their own with any security vulnerabilities, and private customers will have to pay for a year of security updates. The minimum requirements for a device to run Windows 11 are so high that many still-functional devices will need to be replaced - unless users are willing to switch to a different operating system.
Meanwhile, the European payments landscape is evolving. Services like Wero, a Europe-wide instant digital wallet integrated with major banks like ING Germany, offer fast, fee-free payments as alternatives to US-based online payment providers like PayPal, Visa, and MasterCard. Wero allows consumers to send money to a phone number or email address without requiring the recipient's account number.
European competitors like the neobank Revolut or Wero, the service provider for the European Payments Initiative (EPI), have been using the "Made in Europe" argument to challenge the US-based online payment service PayPal. Other European payment solutions include iDEAL in the Netherlands, Satispay and Bancomat Pay in Italy, which emphasize instant, low-cost, and integrated payments within Europe to reduce reliance on international processors.
In a significant event for the German industry, a South Korean company has acquired a traditional machinery manufacturer in Germany, although the specific company isn't mentioned in the text.
Another concern that has arisen is the lack of awareness about European AI startups like Mistral AI (Le Chat), a developer of open-source language models and focusing on privacy, which is still largely unknown in Germany.
Last week, PayPal's fraud detection systems failed, affecting direct debits where PayPal withdraws funds from customers' bank accounts after they've made an online purchase. This incident serves as a reminder of the importance of data security when choosing a product or service, a recommendation made by the Federal Office for Information Security (BSI).
In global news, India's arms deal could result in a multi-billion dollar order for fighter jets for France, while a key drone manufacturer is on the brink in Russia, which could have a substantial impact on Russia's war efforts.
The closure of a company's German location results in all employees being dismissed, a reminder of the impact such digital transitions can have on individuals and communities. As we move forward, it is crucial to balance the need for digital resilience and sovereignty with the protection of consumer interests and the preservation of jobs.
