EU Eyes Restrictions on U.S. Cloud Platforms for Government Data

The European Commission is weighing rules that would limit member governments’ use of U.S. cloud platforms to process sensitive public data, CNBC reported Thursday, citing two anonymous Commission officials.

Brussels Defines the Scope of a Tech Sovereignty Push

The proposals are taking shape ahead of the Commission’s planned “Tech Sovereignty Package,” due to be unveiled on May 27. Officials told CNBC the package would include the Cloud and AI Development Act and a second iteration of the Chips Act. Both measures are designed to accelerate homegrown digital capacity across the bloc. A Commission spokesperson described the package as “Europe waking up and getting its act together.”

The potential restrictions would not amount to a blanket ban on overseas cloud providers in public procurement. Instead, officials said the measures would limit non-EU platforms from handling data categorised as sensitive, with requirements scaled to the sensitivity level involved. Financial records, judicial data and health information processed by governments are all under discussion for the highest tier of sovereign infrastructure requirements.

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Background: A Shift Driven by Transatlantic Friction

European governments’ reliance on U.S. cloud infrastructure has drawn growing scrutiny as relations with Washington have deteriorated. Under the U.S. Cloud Act of 2018, American law enforcement agencies retain the legal right to request data held by U.S. companies regardless of where that data physically resides. That statutory reach has unsettled European policymakers managing sensitive citizen data on American platforms.

EU member states currently permit overseas cloud providers to store and process sensitive public-sector data, provided firms comply with applicable regulations. But several governments have already begun shifting toward alternatives. France launched a state-developed video conferencing tool in January, committing to roll it out across all public services by 2027 as a domestic replacement for U.S. platforms.

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What Comes Next for U.S. Cloud Giants

The proposals remain in draft form and have not been formally tabled. Once the Commission presents the package, unanimous approval from all 27 member states would be required before any rules take effect. The discussions cover only public-sector entities, and the Commission confirmed the measures would not extend to private companies’ cloud choices. Still, the implications for dominant U.S. providers including Amazon Web Services and Microsoft Azure in European government markets could be significant if the restrictions advance into law.

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