Ericsson CEO Borje Ekholm criticized the European Union’s push for tech sovereignty, calling it dangerous for the bloc’s competitiveness. Speaking after the company’s fourth-quarter earnings, he argued that reducing dependency on US technology would ultimately harm European industry. Ericsson also announced its first-ever share buyback program.

Ekholm’s warning highlights the tension between political goals and business realities for European telecom giants. The EU aims to bolster its digital autonomy amid US-China tech rivalry, but Ericsson fears fragmented standards and higher costs could slow 5G deployment and innovation. This matters for investors as it signals potential headwinds for European tech firms.

The comments come as Ericsson reported Q4 results and launched a buyback, aiming to return capital to shareholders. Ekholm’s stance suggests the company may lobby against restrictive policies that could limit its access to global supply chains. Watch for further EU regulatory moves and how they affect Ericsson’s growth strategy.