Earlier quoted context omitted.
You can have an okay economy without tech heavy hitters, but the point is that being dependent on US internet tech or Russian natural gas or whatever can be a significant vulnerability.
Out of curiosity which tech heavy hitters would Europe be vulnerable to losing? I assume they could live without Facebook for a few days.
Even Dell, HP, IBM, Oracle. Service contracts have to be fulfilled, and making a living off of social media like Instagram, YouTube and Twitch isn't just an American phenomenon, actually come to think of it, most of the YouTubers I follow aren't even American. They're mostly in Europe or Australia.
And don't assume they'll just be fine without Facebook either, as far as digital advertising goes, Facebook and Google are pretty much the only game in town. Some small businesses do depend on being able to get business through advertising referrals.
Europe is a rich continent, it's not like they would be destitute if the rich wonders of American tech companies just evaporated from their part of the world tomorrow, but you're not replacing most of them overnight either, so Europe instead is trying this thing where they can at least try to control them.
I mean, I don't see it working out in the long run but in the short term they've shown some muscle, because after all: Europe is a rich continent. Australia, Canada and New Zealand are market-wise, about the size of three US States put together, which is nice, but Europe is pretty much the only large and rich viable market for most tech companies outside of the United States and Japan without putting yourself in a position of having to kiss Chairman Winnie the Pooh on the ring.