European tech exodus: companies are turning their backs on the EU
A number of tech giants have already left Europe or are threatening to do so because of strict regulations.
Published on February 10, 2026
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It is a battle that has been going on for years. While Brussels sees legislation as a way to protect citizens, entrepreneurs often feel it is a stifling blanket that hinders their growth.
Some tech giants are turning their backs on Europe. Stricter regulations, higher costs, and geopolitical tensions are forcing companies to reconsider their position on the continent—or even to discontinue their services here. Some have already left, while others are threatening to follow suit. Which big names have had enough of Europe, and why? We list a few notable examples.
Remote: due to heavy regulation
Let's start with Remote. Back in 2019, Job van der Voort and his co-founder Marcelo Lebre decided to establish the company in San Francisco instead of the Netherlands. According to Van der Voort, this was due to heavy regulation in Europe, which he believes hinders innovation and growth. Remote, which helps companies hire and manage international teams, has grown rapidly since then and raised $300 million in a funding round in 2022. Van der Voort also advises other European startups to leave the continent if they really want to scale up.
Bird: also due to overregulation
Fast forward to February 2025, when Dutch startup Bird announced it was leaving the European Union and moving its headquarters to the United States. This company, which develops a communication platform for businesses, also cites overregulation as the main reason for its departure.
Signal: due to conflict over privacy
In addition to economic motives, there is a fundamental conflict over privacy. Take Signal, which is threatening to leave the EU. The company has its headquarters in the US, but also has many users in the EU. The American secure messaging platform is under pressure due to plans in the EU to enable so-called backdoors in apps, so that messages can be automatically scanned for illegal content. Meredith Whittaker, president of the non-profit Signal Foundation, warned that Signal would rather leave the European market than undermine the end-to-end encryption of its users. According to her, this encryption guarantees the privacy of millions of people worldwide, often in life-threatening situations. Signal therefore refuses “chat control” and points out that a backdoor can never be used only by the “good” parties.
Cloudflare: due to tensions surrounding internet infrastructure
Tensions are also rising at the level of internet infrastructure. The American network giant Cloudflare threatened to leave Italy earlier. This follows a €14 million fine and demands from the Italian regulator regarding the “Piracy Shield” system. This system requires internet providers to block reported piracy sites within 30 minutes. Cloudflare argues that this is technically impossible without accidentally blocking legitimate websites. Cloudflare CEO Matthew Prince calls the measures disproportionate. He previously warned that the company may stop providing cybersecurity for the 2026 Winter Olympics in Milan.
If infrastructure providers such as Cloudflare decide that the legal risks in certain EU countries are too great, this could lead to a fragmentation of digital services in Europe. The result would be a less robust and slower internet for European users.
European alternatives
Although there are more and more European alternatives for services outside Europe, such as the AI service Mistral from France, there is still a lot of catching up to do. If Europe wants to stand on its own two feet, there is work to be done.