EU Proposes Restricting Microsoft and Google’s Access to Strategic Public Cloud Contracts
European Commission aims to reduce dependency on US tech giants by limiting their role in critical sector tenders.
The European Commission has drafted a new legislative proposal intended to reduce the European Union’s dependence on major US technology corporations, including Google, Amazon, and Microsoft, particularly within strategic sectors such as energy, banking, and healthcare.
Restricting Access to Government Cloud Contracts
The proposed "Cloud and AI Development Act," expected to be presented to the European Parliament on June 4, would block Google, Amazon, Microsoft, and other US providers from participating in public tenders involving cloud services in critical industries. This move reflects Brussels’ desire to strengthen the EU’s technological sovereignty and data security.
According to the draft legislation, new requirements would be imposed on cloud service providers, focusing on the degree of third-country control over data and services. Providers would be required to use software and hardware developed within EU member states, effectively limiting the participation of dominant American cloud providers who collectively command over 60% of the global cloud market.
"The legislation seeks to fortify the EU’s independence by prioritizing homegrown technology and limiting external influence over sensitive data," said a Commission official involved in the drafting process.
Additionally, the bill proposes accelerated approval procedures for the construction of data centers within the EU, signaling a broader strategy to build autonomous digital infrastructure across member states.
Context: US Cloud Act and European Tech Regulation
The initiative comes amid European concerns about the US Cloud Act, which grants American authorities access to data held by US companies even if stored on servers abroad. This legal framework has heightened fears of data sovereignty breaches within the EU and prompted calls for stronger protective measures.
Brussels has steadily escalated its regulatory efforts to curb US tech dominance. Recent legislation such as the Digital Markets Act (DMA) and Digital Services Act (DSA) have targeted online competition and platform accountability. The European Commission has also launched multiple antitrust investigations against Amazon, Microsoft, Google, and other US tech companies.
For example, the Commission is reportedly preparing to fine Google hundreds of millions of euros for search result ranking practices that allegedly favor its own services, breaching DMA rules designed to ensure fair competition.
This latest cloud legislation underlines the EU’s strategic approach to reshaping its digital economy and reducing reliance on foreign technology providers, with significant implications for corporate strategies of US tech giants operating in Europe.
