Proposed EU cloud rules may restrict Amazon and Google from critical government contracts

Jun 1, 2026, 11:53:43 AM UTC(2 days ago)
Impact: Medium
Proposed EU cloud rules may restrict Amazon and Google from critical government contracts

Affected Assets

  • The European Union is considering a draft law that mandates non-price criteria in public procurement, favoring EU-made software and hardware for critical infrastructure.
  • Microsoft is reportedly nearing a multimillion-euro settlement with CISPE, a cloud lobby group backed by Amazon, to resolve a long-standing antitrust complaint regarding cloud licensing practices.
  • The European Central Bank has launched a public consultation on new guidelines for banks using public cloud providers like AWS and Google Cloud to address IT outsourcing vulnerabilities.
  • Industry experts warn that an inward-looking EU cloud policy could stifle innovation by prioritizing domestic champions over global hyperscale capabilities.
  • The proposed measures would require non-EU providers to undergo rigorous assessments regarding third-country influence and data protection standards before winning public tenders.

Sources

$AMZN $GOOGL - EU CLOUD RULES COULD HIT BIG TECH BIDS A draft EU cloud computing law could make it harder for Amazon, Google and Microsoft to win contracts for "very critical" cloud services in Europe. The proposal would introduce mandatory non-price criteria in public procurement, including preferences for EU-designed or EU-made software and hardware, EU-based R&D, and security of supply. For non-EU providers, authorities would assess factors such as data protection standards, the level of third-country influence over data, services and decision-making, and how open their home markets are to foreign cloud providers. Sources and draft documents indicate the measures would strengthen the position of European cloud vendors in public-sector tenders.
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Proposed EU cloud rules may restrict Amazon and Google from critical government contracts | Foxly Invest