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Exclusive-EU cloud rules to curb Amazon, Google access to strategic tenders, draft document shows

Published by Global Banking & Finance Review

Posted on June 1, 2026

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· Last updated: June 1, 2026

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Exclusive-EU cloud rules to curb Amazon, Google access to strategic tenders, draft document shows

EU Proposes Strict Cloud Computing Criteria for Critical State Tenders

By Foo Yun Chee and Toby Sterling

Overview of the Proposed Cloud and AI Development Act

BRUSSELS/AMSTERDAM, June 1 (Reuters) - Europe plans to propose strict criteria for cloud computing services in highly critical state tenders that could exclude Amazon, Microsoft and Google from such projects, according to documents seen by Reuters.

The proposal is part of the European Commission's Cloud and AI Development Act, which EU tech chief Henna Virkkunen will announce on Wednesday as part of a package of measures aimed at reducing Europe's dependence on U.S. tech and promoting European businesses.

Motivation: Sovereignty and Data Security Concerns

The drive for sovereignty requirements in sensitive sectors such as banking, energy, healthcare and comes amid fears of surveillance by the United States and that it may get unlawful access to Europeans' data on the basis of its laws such as the Cloud Act which requires U.S.-based providers to grant authorities access to data even if it is stored abroad.

Key Provisions and Impact on U.S. Tech Giants

The EU proposal, previously unreported and that could face late changes, also introduces mandatory non-price award criteria, including requirements for software and hardware developed within the EU, that would disadvantage U.S. big tech.

European Commission's Position and Expected Reactions

The European Commission declined to comment on details of its plans though said that its tech sovereignty package was "crucial for strengthening Europe's own technological capacities, for Europe's competitiveness and security."

The EU executive's plan, which needs backing from EU countries and the European Parliament in the coming months, could draw backlash from the U.S. government which is already extremely critical of other EU laws aimed at reining in Big Tech and ensuring that they police their platforms for illegal and harmful content.

(Reporting by Foo Yun Chee in Brussels and Toby Sterling in Amsterdam; Editing by Adam Jourdan and Louise Heavens)

Key Takeaways

  • The EU plans to introduce the Cloud and AI Development Act (CADA), requiring ‘sovereign’ cloud criteria—e.g. control over service, supply chain, infrastructure, data processing, and cybersecurity—in public procurement for sensitive state projects, which could disadvantage U.S. tech giants such as AWS, Azure, and Google Cloud. (euronews.com)
  • This move is part of the European Commission’s broader 'tech sovereignty' package, which also includes the revised Chips Act and procurement incentives to triple EU data center capacity by 2030 and reduce dependency on foreign providers. (redmapl3.europarl.europa.eu)
  • European cloud providers and policymakers support the initiative, with 13 EU vendors and civil society groups publicly endorsing efforts to 'build European, buy European,' while trade bodies like CISPE warn against 'sovereignty washing' and have proposed certification frameworks to ensure genuine control and resilience. (investing.com)

References

Frequently Asked Questions

What is the EU's Cloud and AI Development Act?
It is a proposed legislation aiming to reduce Europe's reliance on U.S. tech by imposing strict criteria on cloud services in critical state tenders.
How could the new EU cloud rules affect companies like Amazon and Google?
The rules could exclude Amazon, Microsoft, and Google from highly critical state tenders by requiring criteria that favor services developed within the EU.
What is the main goal of the EU's proposed cloud regulations?
The main goal is to strengthen Europe's technological capacities and competitiveness while enhancing tech sovereignty.
Who is expected to announce the EU's new cloud computing proposal?
EU tech chief Henna Virkkunen is set to announce the proposal as part of a broader package of measures.
Will the proposed EU cloud rules disadvantage U.S. big tech firms?
Yes, the introduction of non-price award criteria and EU-developed requirements are likely to disadvantage major U.S. tech firms.

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