

It’s the latter. But as a crapload of our everyday services depend on US companies and their servers it would be a service outage we’ve never seen before. Big US companies (Microsoft, AWS, Google, Meta…) could technically mitigate at least some effects if it’s just the actual connectivity which is missing but if they’re forced to shut down all European services it’s a whole another matter.
For your everyday consumer it would mean missing a lot of streaming services, email, personal backups of your photos on cloud services and stuff like that. On some cases even access to their bank accounts would be lost. Depending on your usage patterns a majority of your digital life could vanish overnight. For companies it would be even worse, a ton of them rely on AWS and other services to keep their business running and all that would come crashing down and a massive amount of them would not have workforce, knowledge nor resources (money mostly) to switch over to something else. Also a lot of tax paid service rely on M365 and other cloud based stuff so they would be affected too, but maybe/hopefully not quite as badly as commercial side. Also, our credit card processors are mostly US (Visa and Mastercard) so a ton of money transfers would be halted as well.
So, it would be pretty much a digital catastrophe on government, commercial and consumer fronts for majority of the people. Technically there’s nothing we couldn’t rebuild on our own, but it would take at least months and more likely several years to get everything back online and the bill for that would be astronomical. And if it’s a total kill-switch for US services then Europe would need new mobile operating systems to replace Android/IOS, new OS for their computers as Windows wouldn’t work anymore and so on. And on top of that, GPS would go too, but with Galileo that might not be the biggest problem around. And also a ton of other stuff I can’t remember right off the bat.
Sure, US would be stranded on the internet (and in the real world too at least to some point) after that and EU/UN/some other entity would take the role which is now on ICANN (and the same for other administrative entities). US would of course get a massive economical hit as well by losing all European customers, but on the worst case that would pretty much mean that the Europe’s internet access, at least as we know it now, would end and something else would be built on the ashes.
But hey, at least I personally wouldn’t have a problem to find a new job should I want to.
They didn’t hack anything. Just your plain old DDoS attack which took the service offline for a while, nothing was (at least based on what I read) actually hacked (or cracked as old-school folks like me would like it to be called) or stolen.