US Technology Giants are Stumbling- But Can EU Start-ups Benefit?

The UK start-up industry is going from strength to strength. There’s more money than ever being funded into the sector and it’s also gaining way more interest too.

Of course, a lot of experts believe that this isn’t something that everyone should get excited about.

One of the most visible trends this year is the fact that US tech giants are now retreating and they have also experienced a lot of setbacks this year too.

All of this unprecedented context will make it much harder for them to try and compete at a much bigger global scale. It will also make it much harder for them to expand and accelerate too.

There is a fragmentation in the market and not so long ago, US tech giants could easily chase the global footprint. Now on the other hand, they are having to slow down, and this could mean bigger and better opportunities for others.

The Tech Market

The gaming industry has boomed over recent years. Take sites such as Moon Games for example.

Websites were once limited to hosting a very small amount of games due to server capacity and load speeds.

Tech has enabled gaming sites to now have hundreds, sometimes thousands of games on their site at any one time and this is just one example of how much things have advanced in this last year alone.

Google and China

Google made the decision to leave China in the year 2010 because they didn’t want to meet the demands of the Chinese government. They found them to be incompatible with their values.

Shortly after, Uber then made the decision to sell their Chinese operations to a local competitor.

They then retreated from Southeast Asia. Amazon are somewhat fumbling in China and even though Facebook are trying to enter the country, it doesn’t seem to be working for them.


The fragmentation has been speeding up for a lot of different reasons. One of them is the mounting of the Second Cold War that is happening between the United States and China.

This makes it very difficult for US companies to even try and compete in China and other countries that are under Chinese influence. Apple is dependent on selling phones in China and they would really lose out if something was to happen with their relationship.

That being said, the trade war isn’t making things easy and even they could start to move away from the market.

The problem is that this isn’t happening in China alone. The rising rumours around digital sovereignty is now turning more and more governments against the US tech market.

There are those that are based in India or even Russia and they require a lot of collaboration when it comes to implementing their own versions of surveillance. This is especially the case when you look at censorship.

Could the shift in power begin to translate to the UK? Could UK businesses start to benefit from this? Only time will tell.