Amazon and Google face tougher cloud-service regulations in Europe
US technology giants including Amazon and Google are facing increased regulatory pressure in Europe. The European Commission’s forthcoming Cloud and AI Development Act would introduce mandatory “non-price” criteria, requiring public-cloud tenders to give preference to technologies developed within the EU, potentially restricting US cloud providers in some government projects.
What are the key facts?
- 1Regulator: European Commission
- 2New rule: Cloud and AI Development Act
- 3Impact: Mandatory non-price criteria in public tenders, such as EU-developed technology
What happened?
The European Commission plans to introduce the Cloud and AI Development Act to reduce reliance on US technology companies. The rules would require public tenders to include mandatory non-price criteria, such as software and hardware being developed within the EU, while emphasizing data-protection standards. The move could affect the competitive positions of cloud providers including Amazon, Google and Microsoft in the European market, requiring them to adapt to the new compliance requirements.
What does this mean for cross-border sellers?
Although the rules primarily target cloud providers, they signal stronger EU digital-sovereignty requirements. Cross-border sellers operating in Europe should monitor data compliance and localization requirements in preparation for possible effects on digital-trade policies.