EU and US Data Economies in the Age of Competition for Digital Power—From Borderless Data Flows to Strategic Autonomy

This chapter examines the EU-US relationship in the context of digital sovereignty and strategic autonomy, focusing on the evolving regulatory frameworks for data flows and digital competition. The EU–US relationship has evolved through many phases and initiatives, each designed to address critical issues, technology standards, data privacy and supply chain security amid increasing geopolitical pressure, particularly from China. While both the EU and the US seek to balance collaboration with independence, distinct regulatory philosophies—the EU’s rights-driven approach versus the US’s market-oriented model—pose challenges. Significant milestones, such as the EU-US Data Privacy Framework, highlight the dynamic nature of transatlantic data governance. Further, this chapter explores the concept of strategic autonomy and its implications, underscoring the importance of shared democratic values in addressing common economic security and digital governance challenges in a globally competitive economy.