> I don't think the thing holding back Europe's tech market is that the US encourages allies to not allow backdooring proprietary software

"Encouraging allies" is a pretty damn generous interpretation of it.

Regarding what's "holding back Europe's tech market", I think that Europe has a different culture. Not having big monopolies is a feature, not a bug. In that sense, the regulations don't fail.

But it is very difficult to compete with monopolies unless you become one and lock your position. If the regulations prevent that (and again, that's a feature), then it becomes impossible.

Trying an analogy:

If we impose strict animal welfare rules on our own chicken farmers, that's a feature. But if we then allow unlimited imports of cheaper chicken raised with no such rules, it becomes unfair to our farmers, doesn't it?