EU Cloud Computing Contract Rules Ease for Tech Giants
EU Scraps Requirement for Vendor Independence from Non-EU Laws
Amazon, Google, and Microsoft may have an easier time bidding for EU cloud computing contracts following the removal of a requirement for vendors to be independent from non-EU laws. The European Union has faced challenges in establishing a cybersecurity certification scheme to ensure the security of cloud services for governments and businesses in the bloc.
Big Tech Eyes Government Cloud Market Growth
As Big Tech companies target the government cloud market for growth, the EU is concerned about illegal state surveillance, while some governments worry about the dominance of U.S. cloud providers hindering EU competitors. The draft cybersecurity labeling rules have been revised to provide clarity on the location of data storage and processing, as well as applicable laws.
Changes in Requirements Benefit Tech Giants
Prior drafts required U.S. tech giants to form joint ventures with EU-based companies and process customer data within the bloc, sparking criticism from European financial institutions and startups. The latest draft, dated March 22, has eliminated these sovereignty requirements, focusing instead on technical provisions and information disclosure.
EU Countries Review Revised Draft
The revised draft is currently under review by EU countries, with the European Commission expected to finalize the cybersecurity certification scheme. The new rules aim to streamline the process for cloud vendors seeking EU contracts while ensuring transparency and compliance with data protection regulations.
