UK private sector heavily dependent on US technology

03 October 2025

Recent research reveals that the UK private sector relies extensively on US technology to operate vital systems, with 88% of publicly listed companies depending on American services.

This heavy reliance is reflected across several European countries, with Ireland showing a 93% dependence, France at 66%, Portugal at 72%, and Spain at 74%, based on a study by Proton analysing email service providers as a proxy for broader technological dependence.

Email infrastructure, a critical component for communication, data storage, and employee identification, represents a significant strategic asset. The study indicates that in key sectors — such as banking and telecommunications — up to 95% of publicly listed companies depend on US-based technologies. Utilities, transportation, and energy sectors also display high reliance, with dependency rates above 80%. Even the UK’s technology industry, valued at US$1.1 trillion, shows substantial US dependence: approximately 94% of software and services firms and 82% of hardware manufacturers listed domestically utilise US platforms.

This pervasive dependency raises long-term concerns about Europe’s digital sovereignty. Analysts warn that reliance on foreign technology providers limits control over critical data, hampers domestic innovation, and exposes economies to vulnerabilities during geopolitical crises. Proton emphasises that this over-reliance creates a “dangerously vulnerable” posture, risking significant disruptions to business continuity and national security if foreign providers face technical failures or geopolitical conflicts.

The report laments decades of complacency, where Europe’s preference for overseas solutions over local development has compromised its strategic independence. Such dependence restricts the continent’s ability to safeguard sensitive data and foster home-grown innovation, potentially rendering Europe increasingly vulnerable and economically constrained. The authors call for urgent action, advocating a “Europe First” approach to develop local digital infrastructure, support national talent, and reduce external vulnerabilities.

Proton urges policymakers and businesses to prioritise investments in domestic technologies and open-source solutions, which could bolster privacy, ensure service continuity, and align with European values and regulations. While email infrastructure is highlighted as a key vulnerability, the report signals broader concerns about technological dependence across various domains. It emphasises the need for Europe to take decisive measures to reclaim control over its digital future, encouraging the development of resilient, locally rooted ecosystems that support sovereignty, security, and economic growth.