European Commission to propose cloud computing rules that could exclude Amazon, Microsoft, and Google from critical state tenders, draft documents show

The European Commission's Cloud and AI Development Act, to be announced by EU tech chief Henna Virkkunen, introduces strict criteria for cloud services in highly critical state tenders in sensitive sectors such as banking, energy, and healthcare.

The proposal mandates non-price award criteria including requirements for software and hardware developed within the EU, aimed at reducing Europe's dependence on U.S. tech providers and addressing concerns about U.S. surveillance and unlawful data access under laws such as the Cloud Act.

The plan requires backing from EU countries and the European Parliament in the coming months and could face backlash from the U.S. government, which is already critical of other EU laws regulating Big Tech.