The European Union is planning to introduce strict new criteria for cloud computing services in highly critical state tenders, a move that could effectively exclude U.S. tech giants Amazon.com Inc., Microsoft Corp., and Alphabet Inc.’s Google from lucrative government contracts, according to internal documents obtained by Reuters.
The proposal is a core element of the European Commission’s upcoming Cloud and AI Development Act. EU Tech Chief Henna Virkkunen is scheduled to officially announce the initiative on Wednesday as part of a sweeping package of measures designed to reduce Europe’s reliance on American technology and bolster domestic digital businesses.
The aggressive drive for digital sovereignty spans highly sensitive sectors, including banking, energy, and healthcare. It is fueled by deep-seated anxieties within the bloc regarding potential U.S. government surveillance.
European officials are particularly concerned that Washington, D.C., could gain unlawful access to European citizens’ data via federal legislation like the U.S. CLOUD Act. That law compels American-based technology providers to hand over data to U.S. authorities upon request, even if the data is stored on foreign soil.
The previously unreported EU proposal, which could still face late-stage modifications, seeks to fundamentally alter how state contracts are awarded. Key provisions include mandatory non-price criteria, in which tenders will no longer be decided solely on cost or technical capability, and localized supply chains. Bidders must meet strict requirements utilizing software and hardware developed entirely within the EU.
Analysts note these stipulations are tailor-made to disadvantage Big Tech firms headquartered outside the bloc.
While the European Commission declined to comment on the specific details of the leaked documents, a spokesperson defended the broader agenda. The tech sovereignty package is “crucial for strengthening Europe’s own technological capacities, for Europe’s competitiveness and security,” the Commission said in a statement.
However, the road ahead remains complex. The executive branch’s plan requires formal approval from both EU member states and the European Parliament over the coming months.
The legislative push is also highly likely to trigger a fierce backlash from Washington. The U.S. government has grown increasingly critical of Brussels’ aggressive regulatory campaign against American tech firms, which includes landmark laws targeting anticompetitive behavior, data privacy, and illegal online content.
