I think he's arguing that not using the most advanced technologies (eg. what Google and Microsoft offer) would be detrimental to worker productivity in the EU.
Of course, in reality, if all those countries start investing in FOSS, they could easily replace the Office suit, SharePoint, the Power platform, etc. I know several programmers who'd gladly devote their time to FOSS full-time if they could. I've even met one who simply refuses to work to create anything proprietary.
I generally agree with you, with 2 caveats:
Dailymotion does it too.
Reproducing YouTube's features isn't the hardest. Getting its network effect is.
I was barely able to remember the name of Google's gen AI. It's not really relevant in the corporate world. I don't think they are close to whooping OpenAI and Microsoft's asses.