Europe Feels Squeeze as Tech Competition Heats Up Between U.S. and China

BRUSSELS — Lacking a powerful technology sector of its own, the European Union has instead tried to carve out a space in the digital economy as the world’s regulatory superpower, leading the charge on privacy rights and data protection by leveraging its enormous single market against Goliaths like Google and Facebook.

But a number of recent examples have made it clear that for Europe, increasingly, that is not enough. The rapid pace of technological change — including artificial…

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