European technology companies are increasingly engaging in direct political lobbying, a trend highlighted in the latest “State of European Tech” report by venture capital firm Atomico. The report, traditionally an assessment of the European tech ecosystem, now includes explicit policy recommendations and advocates for systemic changes. This shift reflects a broader industry realization: sustained growth requires active engagement with policymakers, not just innovation.
The Rise of Tech Lobbying in Europe
For years, European tech has lagged behind its American counterparts in political influence. Now, mirroring strategies employed by Big Tech and established industries, companies are hiring public affairs professionals and forming collective advocacy groups. This push isn’t just about securing favorable regulations; it’s about shaping the future of the European tech landscape. Atomico’s portfolio—including companies like Aiven, DeepL, and Klarna—gives its recommendations significant weight.
Key Policy Demands
The report outlines four core policy areas: “Fix the friction,” “Fund the future,” “Empower talent,” and “Champion risk.” These align with ongoing discussions in both the startup community and Brussels policy circles. A key focus is the proposed 28th regime by EU-INC, which aims to create a unified European company structure, streamlining operations across 27 national regimes. The debate over whether this will be a binding “regulation” or a flexible “directive” is critical, as regulations enforce uniformity, while directives allow for national interpretation.
High-Level Buy-In and Sophistication
This lobbying effort is gaining traction at the highest levels. The report features a quote from European Commission President Ursula von der Leyen, emphasizing her commitment to developing AI in Europe. This high-profile support signals a new level of engagement. Organizations like France Digitale and ESNA are already producing detailed policy proposals, and Atomico is amplifying these messages through videos, conferences, and direct outreach to policymakers.
The Missing Perspective
Despite the growing sophistication of this advocacy, a critical perspective is often absent: the potential opposition. Many Europeans may not prioritize the creation of trillion-dollar companies, highlighting a disconnect between industry priorities and public concerns. However, industry leaders like Alexandru Voica of Synthesia argue that broader economic growth is ultimately tied to tech sector success.
Reputation and Distrust
A key challenge facing European tech is public distrust. Communications and policy are now seen as essential for risk mitigation and reputation management, rather than just marketing. Failing to address this distrust could undermine broader support for industry initiatives. The movement must also avoid becoming overly aligned with specific political parties, which could trigger backlash.
Ultimately, European tech finds itself at a critical juncture. As Atomico states, the region stands at a crossroads, and the industry’s future depends on its ability to navigate the political landscape effectively.
The shift towards proactive lobbying represents a maturation of the European tech sector, but its success will depend on bridging the gap between industry demands and broader societal concerns.
