The European Union is drafting strict new rules for cloud computing services that could limit U.S. tech giants like Amazon, Google, and Microsoft from securing highly critical state tenders. The proposal is part of the European Commission's "Cloud and AI Development Act," which aims to reduce Europe's dependency on American technology and bolster its own digital sovereignty.
The draft rules introduce mandatory "sovereign" criteria for public contracts in sensitive sectors, including requirements for hardware and software developed within the EU. This move is driven by concerns that U.S. laws, such as the CLOUD Act, could allow unlawful access to European data. The plan, which still needs approval from EU member states and the European Parliament, could significantly disadvantage U.S. providers in the European public-sector market.