EU Cloud Rules May Exclude Amazon, Microsoft, Google from State Tenders

The European Union plans to propose strict criteria for cloud computing services in highly critical state tenders, potentially excluding Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL) from such projects, according to documents seen by Reuters.

Details of the Action

The European Commission will introduce new criteria under the Cloud and AI Development Act, which EU tech chief Henna Virkkunen will unveil on Wednesday. The act aims to reduce the bloc's dependence on non-EU cloud providers, especially in sensitive state tenders.

Company Stance

No official comments have been issued by Amazon, Microsoft, or Google regarding these plans. The companies are expected to oppose any measures that limit their access to European government markets.

Precedents and Context

This move is part of broader EU efforts to enhance digital sovereignty and reduce reliance on foreign technology. The EU has previously imposed large fines on Big Tech for antitrust violations and is working on legislation such as the Digital Markets Act and Digital Services Act.

Potential Financial Impact

If implemented, these rules could cost Amazon, Microsoft, and Google significant government contracts in the EU, potentially affecting their revenues in the region. However, the documents do not specify the exact value of contracts that might be affected.