US technology has a hegemony because we were first to the party, our economy is larger, and our laws are hostile to newcomers (lack of interoperability requirements, lack of enforcement of anti-trust laws, strong defense of DMCA laws, non-competes, and trade secret laws).

I've worked in the EU tech sector. They have tons of startups that operate just like US startups: VC funded, hockey-stick growth, and hiring like crazy. Their stricter labor laws don't get in the way of that.

The hyper-growth, VC-funded startup model is itself quite exploitative, but if it's still possible with stricter labor laws, then fears about them impacting growth are unfounded.