Earlier quoted context omitted.
Not all universities in Europe are like this, but some are 100% like this. But if there was a larger political directive towards a more autonomous solution, it would eventually work, I think.
Can universities be given political directives like that in most European countries? In the UK they are usually (entirely?) independent, are non-profits and registered charities. They get government funding for both (British resident) students and research so the government has leverage but would have to use that to incentivise them. I imagine at least some other European countries are much the same. An even trickier…
In most europeans countries afaik most (known) universities are public ie state-owned, with few exceptions. Big part or most of the funding is public too. Regardless of whether they are state-owned, the states usually set up the framework the universities operate in. How loose or tight is the state control varies from country to country. But there is always some way to meddle into university affairs and very often they do, in the context of public policy. Eg in the recent years universities tend to get very specific directives about from which countries they can freely form collaborations with academics and from which not, depending on the foreign policy of a country. A lot of stuff eg if and how a university can own property is also regulated depending on the country. It varies a lot, but I see no reason to set up some stricter framework wrt data sovereignty. Ime the supposed autonomy of the universities here is only on paper.