Matthew Tuttle, CEO of Tuttle Capital Management, warned that investors may be underestimating a growing shift away from U.S. assets, particularly large technology firms, as Europe and other regions move to reduce dependence on American platforms and policies.
In a note released on Monday, titled “Europe Just Started Building a ‘Kill Switch’ for U.S. Tech – And the Market Isn’t Priced for It,” Tuttle pointed to what he described as a growing push by governments and corporations to build alternatives to U.S.-based technology and policy frameworks, reported MarketWatch.
He said the shift is already becoming visible across procurement decisions, supply chains, defense spending, and capital allocation, arguing that once these changes gain momentum, they tend to be difficult for markets to ignore.
Europe Pushes Digital Sovereignty Shift
Tuttle also highlighted a less visible but equally important shift towards digital sovereignty in Europe, which aims to ensure that communications and core systems can’t be easily turned off if relations with the U.S. deteriorate.
He pointed out that the shift is already underway, citing France's push for state employees to discontinue Zoom Communications (NASDAQ:ZM) for official digital communications and Germany's efforts to transition public-sector operations away from Microsoft-based (NASDAQ:MSFT) infrastructure.
Tuttle identified several European companies that could benefit from this shift, including OVH Groupe, IONOS, Orange, Deutsche Telekom, and Capgemini.
He also warned that U.S. tech giants like Zoom Communications, Microsoft, Cisco Systems (NASDAQ:CSCO), and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) could face headwinds in Europe as procurement becomes a matter of sovereignty policy.
EU Scrutiny Grows Over US Big Tech
The warning from Tuttle comes amid a series of significant regulatory and policy shifts in Europe that could impact U.S. tech companies. In January, the European Commission announced the Digital Networks Act, a major overhaul of EU digital and telecom rules aimed at boosting competitiveness and accelerating investment in broadband and fiber infrastructure.
Google, Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), Netflix Inc. (NASDAQ:NFLX), and Microsoft were reported to avoid binding new obligations
The EU also launched a probe into Elon Musk‘s X over its AI chatbot’s nonconsensual image editing feature, indicating a growing focus on digital ethics and privacy.
In December 2025, the Donald Trump administration warned the U.S. could retaliate against the EU and some member states for targeting American companies with unfair lawsuits, taxes, fines, and regulatory requirements.
EU-US Ties Strained by Tariff Threats
Meanwhile, relations between the EU and the U.S. have come under strain after President Donald Trump threatened the EU with tariffs for not supporting his bid to acquire Greenland.
At the World Economic Forum in Davos, Commerce Secretary Howard Lutnick also slammed Europe’s trade decisions and stated that “globalization has failed” the West. In January, a group of European Parliament lawmakers blocked a vote to ratify a trade agreement between the U.S. and the European Union amid soured ties.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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