In a move that could potentially impact tech giants like Amazon Inc. (NASDAQ:AMZN), Microsoft Corp. (NASDAQ:MSFT), and Alphabet Inc.‘s Google (NASDAQ:GOOGL), the European Union (EU) is reportedly planning to propose stringent criteria for cloud computing services in significant state tenders.
The EU’s proposal, part of the European Commission’s Cloud and AI Development Act, is set to be unveiled by EU tech chief Henna Virkkunen. The Act aims to reduce the bloc’s dependence on U.S. tech and strengthen EU businesses, reported Reuters on Tuesday, citing a draft document.
The bloc’s push for greater digital sovereignty in sectors such as banking, healthcare, and energy is being fueled by concerns about reliance on U.S. tech firms and the extraterritorial reach of legislation like the Cloud Act, which permits U.S. authorities to request data from American providers even when it is hosted abroad.
The proposal would require public procurement contracts to consider mandatory non-price factors, including preferences for software and hardware developed within the EU, potentially putting U.S. Big Tech at a disadvantage, as per the report.
The European Commission did not immediately respond to Benzinga‘s request for comments.
EU Pushes Tech Sovereignty
This move by the EU follows a series of actions aimed at reducing dependence on non-EU tech companies. In May, Reuters reported that the European Commission is proposing a new Chips Act 2.0 that would encourage governments to purchase semiconductors from European startups as part of a broader effort to reduce dependence on U.S. and East Asian chipmakers.
The proposal follows the limited success of the original Chips Act, launched three years ago to attract advanced chip manufacturing and boost Europe’s share of the global semiconductor market to 20% by 2030.
Another report last month suggested that the EU was considering new rules to restrict member governments from using U.S.-based cloud providers to handle sensitive data. As part of its “Tech Sovereignty Package,” the European Commission was said to be exploring measures to reduce public-sector reliance on non-EU cloud platforms and strengthen the bloc’s digital independence.
Meanwhile, Meta Platforms Inc. (NASDAQ:META) agreed to temporarily offer rival AI chatbot developers free access to WhatsApp’s Business API in Europe for one month to address antitrust concerns raised by EU regulators. The move comes amid ongoing discussions with the European Commission and follows criticism of Meta’s January policy that limited WhatsApp AI integration exclusively to Meta AI.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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