Breaking the lock-in: Poland takes aim at tech monopolies

In December 2025, the Instrat Foundation published a report showing that 99% of public tenders for office software in 2025 heavily favored Microsoft, and in some cases effectively excluded competitors altogether.

The problems run deeper. According to the foundation’s experts, public administration tender requirements often rely on non-substantive criteria that, in effect, entrench Microsoft’s monopoly. Examples include specifying a single vendor for the entire software suite or requiring compatibility with proprietary technologies. Such provisions, often irrelevant from a functional standpoint, effectively block alternatives and reinforce vendor lock-in.

“This is the wrong direction,” say government officials, who plan to take action. Experts support their initiative.

Ministry takes aim at overdependence

Officials from the Ministry of Digital Affairs openly acknowledge that both in Poland and across the European Union, public administrations at various levels face excessive dependence on specific suppliers and the phenomenon of vendor lock-in. They do not mention Microsoft’s role explicitly.

“Efforts should focus on reducing this dependence, for example through supplier diversification, emphasizing interoperability, and using open-source software,” the Ministry of Digital Affairs stated in an official comment provided to our editorial team.

The Ministry says concrete measures have already been prepared to combat vendor lock-in. These include changes to public procurement rules, with a stronger emphasis on promoting open-source software. Plans also call for guidelines on properly preparing public tender processes, which will be distributed to public administration units.

The Ministry intends to develop solutions supporting the integration of sovereignty and security requirements into ICT procurement for public administration.

“This includes solutions promoting Polish suppliers as well as vendors from EU member states that meet these standards, and the use of European products in critical sectors,” ministry representatives declared.

The overarching goal is to increase the share of open-source software. This includes establishing an Open Software Programs Office and developing a program to implement open-source solutions across Polish public administration.

Microsoft and the Polish administration

The findings of the Instrat Foundation report focused exclusively on Microsoft. The company has long emphasized its cooperation with the Polish government. For instance, in 2023, when announcing the launch of Microsoft’s investment in Poland, then-Prime Minister Mateusz Morawiecki described the country as friendly to large international firms.

In 2020, when a USD 1 billion investment was announced, the Prime Minister welcomed Microsoft’s decision to choose Poland as its location.

“Another major global player – Microsoft – has chosen Poland for its investment, worth USD 1 billion and the largest in our region of Europe. What does this indicate? That the Polish digital market is attractive even at a time when economies worldwide are experiencing a crisis,” he said in a video posted on Facebook.

In February 2025, Prime Minister Donald Tusk held an official meeting with Brad Smith, President of Microsoft.

“I am pleased to say that the many billions that appeared on the horizon as a result of our previous meetings are now materializing. This interest in Poland, in this particular investment that Microsoft is announcing, has been confirmed today by Microsoft’s leadership in Mazovia,” the Prime Minister said.

Mateusz Morawiecki - former PM, now in opposition - also welcomed the announcement, posting that it represented a continuation of investments initiated under PiS-led governments.

We asked Microsoft representatives about the state of its cooperation with the Polish government, whether the company is in contact with the Ministry of Digital Affairs, and what lobbying activities are being undertaken to encourage public administration to select Microsoft software and technology.

“We work with the Polish government in the same way we collaborate with public institutions worldwide – supporting digital transformation, cybersecurity, and skills development. Microsoft solution offers submitted in public tenders are delivered by authorized partner companies in full compliance with applicable public procurement law,” said Anna Klimczuk, Head of Communications for Microsoft Poland.

There is a problem. And it needs to be solved

Experts say that dependence on single suppliers, particularly from the United States, is a real issue.

“This dependence runs deeper than most of us realize. Public administration, the education system, healthcare – everywhere, Microsoft 365 and Google Workspace dominate,” argues Arek Kwoska, Managing Partner at Rebels Valley.

He stresses that it is not just a matter of convenience in using Word or Excel.

“It’s about the fact that our data, decision-making processes, and the operational continuity of key institutions are effectively tied to the business and regulatory policies of companies in Redmond and Mountain View. In the startup world, which I know best, we see the same pattern. AWS, Azure, and Google Cloud are practically the only options considered by most European tech companies,” he explains.

Piotr Mieczkowski, board member of the National Chamber of Electronics and Telecommunications, AI Poland, and TechPL, shares a similar view.

“For example, cloud services in Europe – and in Poland as well – are controlled by three providers: Amazon (AWS), Microsoft (Azure), and Google (GCP). The situation is no different in AI, where OpenAI is the leader. The same applies to traditional applications such as office suites. Microsoft is practically a monopolist with its Office 365 package, now Microsoft 365 Copilot. The latest foundation report also highlights these trends. Meanwhile, Draghi’s report showed that as much as 80% of the digital infrastructure, products, and services used in Europe come from non-European countries,” he explains.

He also believes that this situation needs to change.

The U.S. administration and the Polish case

Recent years’ experiences should carry significant weight for decision-makers – not only regarding the policies of technology companies themselves.

“We observe cases of excessive dependence on tech firms on an ongoing basis. Just recall Microsoft’s sudden pricing and licensing policy changes, which repeatedly forced European institutions to face faits accomplis. Recent years have also shown how quickly U.S. tech companies can cut off access to their services. We saw this in Russia after the invasion of Ukraine,” says Arek Kwoska.

From a Polish perspective, cutting digital services in Russia was strategically justified. Yet a problem arises – one that, given various directions in U.S. administration policy, could also affect Poland.

“It was the right move, but it also demonstrates that the ‘switch’ lies beyond our control. For Poland, a NATO frontline state, this should serve as a lesson. What if tomorrow the administration in Washington changes and/or alliance priorities are reprioritized? The current unpredictability of U.S. foreign policy makes these questions very legitimate,” Mr. Kwoska notes.

Another concern is highlighted by Michał Misztal, CEO of Startup Academy.

“Dependence on digital technologies is just one of many issues in the asymmetrical relationship with our American partners. Lack of meaningful taxation, or astroturfing—that is, big tech creating front organizations that mimic local grassroots initiatives to lobby for U.S. giants – are additional challenges that require proper attention from Polish authorities,” he comments.

Addressing the dominance of tech companies

Experts also have concrete solutions to help increase Poland’s – and its administration’s – independence.

“First, public administration should adopt a multi-cloud and multi-vendor strategy as the standard, not the exception. Second, we should actively support European alternatives – not out of sentiment, but pragmatism. Initiatives like Gaia-X and European cloud providers need real backing through public procurement. Third, in IT education, we should teach standards and protocols, not specific products. The next generation must understand that Excel is not synonymous with spreadsheets,” says Arek Kwoska.

He emphasizes that this is not about technological nationalism or turning away from American innovation.

“It’s about basic strategic hygiene: diversification, preserving options, and building the competencies that allow us to switch providers if needed, without paralyzing the entire system. Friends come and go, but interests remain. Poland should have technological sovereignty – which does not mean complete independence – to ensure these interests are effectively pursued,” the expert adds.

Monopoly is a feature of technology. But surrender is not an option

Piotr Mieczkowski highlights a broader issue of monopolization in the technology sector.

“This is not a new situation. Market monopolization occurs because technologies love scale, and scale, in turn, attracts the money and capital of the largest funds. As a result, consumers usually rely on no more than three applications of a given type. For example, we have Spotify, Tidal, and YouTube Music – and then a long gap. Similarly, in Poland, Allegro holds a certain monopoly in e-commerce. Many other major providers still cannot penetrate our market. In payments, for instance, there is BLIK, which has become a national phenomenon. So market monopolization in technology has been happening for decades – and it is accelerating today,” the expert notes.

Mieczkowski also cites Mark Carney. At the World Economic Forum in Davos, Mr. Carney pointed out that dependencies and bottlenecks in supply chains are now being leveraged in trade conflicts – ranging from rare earth metals and semiconductor production to software and applications.

“In English, this is beautifully called ‘weaponized,’ though we don’t have a good Polish equivalent,” he observes.

He also offers concrete solutions to address the issue.

Europe needs to wake up

“Above all, Europe is the only continent that does not favor its own solutions. It’s time to stop fooling ourselves that China, the U.S., or other countries will stop doing it at home. The WTO is dead. It’s time to start protecting the local market and eliminate strategic dependencies,” says Piotr Mieczkowski.

He cites Microsoft and the recently published Instrat Foundation report as an example.

“We can start by avoiding specifying Microsoft Office in public tenders. As the Instrat Foundation recently showed, many public procurement processes appear open on the surface. Second, we can support standards to challenge monopolistic and proprietary solutions. For example, a tender could require that software be open source, with code uploaded to GitHub or Hugging Face. Third, countries can collaborate on joint projects to scale them. This is exactly why EDIC for Digital Commons was created as a consortium of multiple countries – including Germany and France – to develop shared software,” Mr. Mieczkowski explains.

Early movers show the way

There is also a fourth approach: favoring European products in the same way the U.S. favors its own.

“Americans require that 80% of components be produced locally. It’s time to outsource more to the private sector so we can later scale both the sector and its products,” urges Piotr Mieczkowski.

Michał Misztal of Startup Academy highlights examples of European countries that have already taken steps to reduce dependence on American companies.

“The clearest proof is that some of the first European countries – such as Denmark, understandably given the potential Greenland conflict – have decided to abandon American suppliers for government institutions. That’s why, as TechPL, we aim to support local content initiatives. We believe that the key to developing the Polish economy is not protectionism or simply localizing components, but building lasting competencies, intellectual property, and implementation capacity within the country,” he explains.

Key Takeaways

1. Proposed solutions include promoting European standards and open-source projects such as Gaia-X and EDIC. Additionally, procurement practices need to change to eliminate clauses that favor specific companies. Developing domestic competencies, teaching neutral standards in education, and supporting homegrown innovation are all critical. Experts emphasize that the goal is not protectionism, but strategic hygiene and the technological capacity to act independently.
2. The Ministry of Digital Affairs plans to curb the dominance of individual technology suppliers in public administration. Its focus is on open-source software and interoperability, with the aim of countering vendor lock-in. According to a report by the Instrat Foundation, Poland’s public tenders almost entirely favor Microsoft solutions. The new guidelines are intended to promote supplier diversification, support local EU-based providers, and integrate technological sovereignty criteria into public procurement.
3. Experts warn that the dominance of U.S. tech companies in Poland extends far beyond office suites. Microsoft 365, Google Workspace, AWS, and Azure are deeply embedded across the public sector, education, and the startup ecosystem. Such dependence carries strategic risks – particularly given U.S. political volatility and rising geopolitical tensions, where technology can be leveraged as a tool of pressure.