EU Plans to Limit Amazon and Google in Strategic Bids, Draft Reveals

• The proposal introduces mandatory non-price award criteria requiring software and hardware developed within the EU, directly disadvantaging U.S. big tech companies
• The measure is part of a broader 'tech sovereignty package' aimed at strengthening Europe's technological capacities, competitiveness, and security
• The criteria would specifically target highly critical state tenders for cloud computing services, potentially blocking the three largest U.S. cloud providers from strategic European government projects

EU Plans to Restrict US Tech Giants from Strategic Cloud Contracts

The European Commission is preparing to unveil the Cloud and AI Development Act on Wednesday, June 1, which would impose strict criteria on cloud computing services for highly critical state tenders, potentially excluding Amazon, Microsoft, and Google from strategic government projects.

Key Details:

EU tech chief Henna Virkkunen will announce the proposal as part of a broader package aimed at reducing Europe's dependence on U.S. technology companies. The draft legislation introduces mandatory non-price award criteria for government contracts, including requirements that software and hardware be developed within the EU—provisions that would significantly disadvantage American tech giants.

Market Implications:

This regulatory move represents a major escalation in Europe's tech sovereignty efforts and could substantially impact the revenue streams of the three dominant U.S. cloud providers in the European market. The restrictions specifically target "highly critical state tenders," suggesting the EU is prioritizing security and independence in sensitive government infrastructure projects.

The European Commission declined to comment on specific details but confirmed the tech sovereignty package is "crucial for strengthening Europe's own technological capacities, for Europe's competitiveness and security."

Important Caveats:

The proposal could face late changes before its official announcement, and implementation timelines remain unclear. The legislation would need to navigate the EU's regulatory approval process before taking effect.

Affected Companies:

• Amazon (cloud services)
• Microsoft (cloud services)
• Google (cloud services)

This development signals heightened regulatory scrutiny of U.S. tech dominance in Europe and may set precedent for similar measures in other jurisdictions seeking digital sovereignty.