EU Proposes New Cloud Rules That Could Block Major US Tech Giants

The European Union is developing new regulations that could prevent major American technology companies from securing critical government cloud computing contracts, according to internal documents obtained by Reuters.

The restrictions would target Amazon, Microsoft and Google through stringent requirements for highly sensitive state procurement projects. These proposed rules form part of the European Commission’s Cloud and AI Development Act, which the EU’s technology leader Henna Virkkunen plans to unveil on Wednesday.

The announcement will be included in a broader set of initiatives designed to decrease Europe’s reliance on American technology firms. The draft proposal, which has not been previously disclosed and may still undergo modifications, would establish mandatory evaluation standards beyond pricing considerations.

These new standards would include stipulations that software and hardware be created within EU borders, a requirement that would put American technology giants at a significant disadvantage in the bidding process.

When asked for comment, the European Commission refused to discuss specific details of the upcoming proposal. However, officials stated that the technology independence package represents something that is “crucial for strengthening Europe’s own technological capacities, for Europe’s competitiveness and security.”