> So I'm assuming Europe's goal is not to compete or break American moat but to force them to be polite and to preserve national sovereignty on important national security aspects.

When push comes to shove the US company will always prioritize US interest. If you want to stay under the US umbrella by all means. But honestly it looks very short sighted to me.

After seeing this news https://observer.co.uk/news/columnists/article/the-networker..., how can you have any faith that they will play nice?

You have only one option. Grow alternatives. Fund your own companies. China managed to fund the local market without picking winners. If European countries really care, they need to do the same for tech.

If they don't they will forever stay under the influence of another big brother. It is US today, but it could be China tomorrow.