This article explores the European Union’s struggle to find a balance between regulation and innovation in the rapidly evolving fields of Big Data and Artificial Intelligence, within a global landscape marked by technological rivalry. The central question guiding this study is how Europe can promote innovation while ensuring ethical and democratic control over digital technologies. Drawing on perspectives from international relations and geopolitics, the analysis situates the EU’s approach within liberal theory, emphasizing cooperation, privacy, and responsible AI. Yet, traces of realism remain evident in its efforts to defend strategic interests against the dominance of major digital powers. The study examines reports from European institutions, academic publications, and recent press articles. It identifies key actors—the United States, China, the European Union, and GAFAM—competing for influence in the digital arena. Confronted with limited access to data and insufficient funding, Europe has prioritized regulation through initiatives such as the GDPR, the Data Governance Act, the Digital Services Act, the Digital Markets Act, and the Artificial Intelligence Act. These frameworks aim to protect citizens, ensure fair competition, and promote ethical technology use. By enforcing sanctions on tech giants, the EU demonstrates its determination to assert legal authority as a form of power. Ultimately, this study underscores that Europe’s digital future depends on its ability to combine innovation with ethical governance, manage power rivalries, and secure a strong, independent position in the global digital order.