This is a geopolitical ploy to thwart America's dominance in Tech, as a cope for not being able to produce any homegrown rivals to America's tech giants.

In general I lean libertarian, and governing bodies like the EU have enormous capacity for overreach at the expense of participating countries and their citizens.

I won't pretend to know exactly how their processes work in detail, as I'm an American citizen, so the EU's concerns generally don't interest me much, but if the U.S. Federal gov't versus State governments can be used an analogy, I have similar feelings, in principle.