EU Proposes Stricter Bidding Rules for Key Cloud Services, Excluding Amazon, Microsoft, and Google
Alina Collins
The EU is drafting new procurement rules that would make data sovereignty and supply-chain origin formal criteria for government cloud contracts — potentially sidelining Amazon, Microsoft and Google from strategic projects, in its most direct move yet to cut Europe's dependence on US tech.
What exactly would the new rules restrict?
The European Commission's upcoming Cloud and AI Development Act will set new standards for government procurement of cloud services handling sensitive data.
Two key criteria are being added: data sovereignty and supply-chain origin. A mandatory non-price award standard would also require that software and hardware used in projects be developed more within the EU.
This means → winning on price and performance alone may no longer be enough. "Where your product was built" becomes a prerequisite for bidding.
Why single out cloud services?
Data storage and processing for banking, energy and healthcare have already been folded into the EU's security and competitiveness agenda.
Europe's core concern is the US CLOUD Act — a law that lets the US government compel American cloud providers to hand over data, even when that data is stored outside the US.
In plain terms = if a European hospital stores patient records on Amazon's servers, Washington can theoretically request access. The EU wants to close that door.
What does this mean for the three US cloud giants?
Amazon AWS, Microsoft Azure and Google Cloud currently dominate Europe's cloud market. If enacted, the new rules would put them at a clear disadvantage in highly critical government projects.
This means → the EU is not banning US cloud across the board. It is drawing a line at the most sensitive tier — commercial markets are unaffected for now, but high-value public-sector contracts could shift to European providers.
This reflects a harder EU posture: moving from regulating Big Tech's behavior to switching suppliers at the procurement level.
Can this actually become law?
The draft will be unveiled Wednesday by EU tech chief Henna Virkkunen, but Reuters notes the proposal could still be revised.
Under EU legislative procedure, it needs backing from both member states and the European Parliament over the coming months.
Washington has already sharply criticized multiple EU laws targeting Big Tech. If this plan advances, it risks a US backlash — adding political headwinds to an already contested process.
Content is for reference only, not financial advice.