Well, if there's one thing I've learned over the last 10 or so years
Is that the EU is getting better at defining regulatory frameworks that appear, at least on the surface, to be well thought out.
Delivery of said regulations and actual policing/compliance checks are another matter all together.
The hyperscalers will see this as a threat and will likely do what they are good at, bluff, bluster, market, obfuscate etc., to maintain dominance.
Also, be wary of any European sovereign provider being bought out by VC/PE.
This will be an ongoing battle, perhaps a worthwhile one, it wouldn't hurt the rest of the planet to be less reliant on North American tech.