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EU Draft Would Bar Some U.S. Cloud Firms From Sensitive State Contracts

It aims to boost European cloud and chip industries by steering critical government tenders to software and hardware developed inside the EU.

Overview

  • Draft documents published on Monday show the rules are being folded into the European Commission's Cloud and AI Development Act and will be unveiled by EU tech chief Henna Virkkunen in the days ahead.
  • The proposal would add mandatory non-price award criteria that favor EU-developed software and hardware for highly critical tenders in sectors such as banking, energy and healthcare.
  • Under the draft, major U.S. providers including Amazon, Microsoft and Google could be effectively excluded from some sensitive government contracts because they cannot meet the EU-origin requirements.
  • The measure is presented as a tech‑sovereignty and security step to limit legal exposure of EU data to foreign authorities, but it still needs approval from member states and the European Parliament and may draw U.S. diplomatic or trade pushback.
  • If adopted, the rules would use procurement to boost European suppliers and chip production, with possible effects on competition, costs for public IT projects and transatlantic tech relations.