The only major market only served by US companies at the moment is search and possibly videochats, in all other markets, there are already European service providers (think United Internet or even DailyMotion). But then search is also a field where it takes considerable investments to build an independent solution – nevertheless it will be interesting to see how long it takes for one to pop up.
I do wonder if the media panic over this will result in quickly passed laws with untended consequences that will damage companys like Google that rely on having huge amounts of personal data.
I think the most straight forward solution for most foreign countries would be to insist that Google, Facebook etc. set up their servers within those countries and limit the amount of data they can transmit to US.<p>Small countries can't do it alone, but EU for example has enough muscle to make this happen and force all data to be stored within EU countries and be staffed by people who are EU citizens. There are already several Google data centers in in EU. They just need more.