Europe is moving to block Microsoft, Amazon, and Google from handling government health, financial, and legal data

[Alfonso Maruccia]

Connecting the dots: Despite all being US-based ventures, cloud corporations now control the overwhelming majority of the world's sensitive data. However, Europe would very much like to change the status quo with a soon-to-be-approved regulatory package.

According to people familiar with the matter, the European Commission is preparing yet another unpleasant regulatory surprise for the current US administration. CNBC talked with two unnamed EC officials, who outlined the significant change that the upcoming "Tech Sovereignty Package" (TSP) might bring to the cloud computing market.

The EC – Europe's executive cabinet and one of its main governing institutions – is expected to introduce the new package later this month, providing some important measures to support the continent's digital self-reliance. Cloud computing is one of the most important tools sustaining today's digital economy, and the TSP will have a particular focus on the sector.

The EC insider sources told CNBC that the TSP could include a significant limitation for foreign cloud corporations when it comes to managing sensitive data. To put it simply, US cloud giants such as Microsoft, Amazon, and Google could be restricted in their ability to process specific data types on behalf of public organizations, including financial, judicial, and health-related data.

The sources noted that the new provisions will not impact private companies, which will be able to choose whatever cloud platform they like to manage their proprietary data. However, US corporations will likely be impacted by the change in a significant way.

One of the EC commissioners said that the TSP will be designed to bootstrap sovereign cloud offerings, giving EU-based corporations a new chance to flourish and bolster their institutional userbase. A reformed public procurement market should also promote a more "diverse" choice between cloud and AI service providers, the official said.

When asked for comment, a Commission spokesperson told CNBC the package was "about Europe waking up and getting its act together."

Members of the European Commission are currently discussing the most crucial aspects of the new cloud-related provisions. The Tech Sovereignty Package is expected to be a major part of Europe's regulatory push, alongside other important measures such as the Cloud and AI Development Act (CADA) and the Chips Act 2.0.

European authorities have been trying to establish a sovereign cloud market for some time now. At this point, Brussels and Washington are essentially on a collision course over digital market regulations. The current, unregulated expansion of the AI data center market happening in the US provides an interesting angle on the significance of these regulatory attempts in the long term.

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Europe is moving to block Microsoft, Amazon, and Google from handling government health, financial, and legal data

 

[winjer]

This should have been done a long time ago.

 

[Squid Surprise]

Can hardly wait to hear the complaints when their dataflow slows to a crawl and they get hacked…

Kind of laughable that they think this will make a difference - this is for votes…

 

[Puiu]

Can hardly wait to hear the complaints when their dataflow slows to a crawl and they get hacked…

Kind of laughable that they think this will make a difference - this is for votes…

It actually is laughable if you think about it, because what you just said about slow data and hacking has already happened.

But if you think a server in the US will be faster than one in Europe then you clearly are just joking around.

As for making a difference, it should for EU companies which will have a much better chance of getting governmental contracts.

 

[Burty117]

Whilst over here in the UK, we've just handed Palantir unlimited access to NHS patient data after giving them £330 million or something ret*rded.

I guess we're getting to the crux of Brexit slowly and steadily...

 

[Squid Surprise]

It actually is laughable if you think about it, because what you just said about slow data and hacking has already happened.

But if you think a server in the US will be faster than one in Europe then you clearly are just joking around.

As for making a difference, it should for EU companies which will have a much better chance of getting governmental contracts.

Say what you will about the privacy or lack of with Google, AWS and Microsoft, at least their infrastructure is robust.

Knowing how governments hand out contracts, I’d wager performance will dip - not to mention they’ll be paying a premium.

 

[Puiu]

Say what you will about the privacy or lack of with Google, AWS and Microsoft, at least their infrastructure is robust.

Knowing how governments hand out contracts, I’d wager performance will dip - not to mention they’ll be paying a premium.

Robust infrastructure exists everywhere. The reason ppl use AWS or Azure is because of ease of use (more ppl know how to use it) or probably smaller prices in the short term. But you don't need global access for this kind of data so infrastructure is much easier to build (and it should exist already in the EU).

And if you think a government makes direct contracts with google/ms/amazon then you've never done business with them. These things get decided at application/server architecture levels by companies that make them.

As for "handouts", you just need to look in your own backyard with how the US government works. Orban was a joke compared to the contracts trump has been giving his family and "friends" to both big and small corporations. Nothing will change in the UE besides on top of which services the cloud will be built on. It could even be much cheaper in the long run because of increased competition.

Do you trust trump and US companies with your health and financial data? Rhetorical question. That would be dumb.

 

[dangh]

Can hardly wait to hear the complaints when their dataflow slows to a crawl and they get hacked…

No worries, we already have a lot of EU based cloud solutions, which are often cheaper and more reliable, e.g. Hetzner. Additionally, using proton mail and other proton solution is much more robust and reliable than google or ms email, and fully encrypted. I don't know what you prefer, but I see no reason to be a google product.

In addition, any self respecting government would not allow other unfriendly countries to have access to its internal data, and data of their citizens. It is simply a best approach to utilize local tools and companies instead of foreign ones, which are very vocal on the data ownership, I.e. Cloud Act.

 

[pnntmp]

Regulate Now - Think Later!
That's the typical EU bureaucracy approach. If this nonsense ever becomes a thing, it will be silently scrapped a couple of months later - when the bureaucrats realize they forgot to check if alternatives existed.

One of the EC commissioners said that the TSP will be designed to bootstrap sovereign cloud offerings, giving EU-based corporations a new chance to flourish and bolster their institutional userbase

If flourishing in the business -hostile environment of the EU were possible, 'sovereign cloud offerings' would have existed without bureaucratic decrees.

 

[Axeia]

Regulate Now - Think Later!
That's the typical EU bureaucracy approach. If this nonsense ever becomes a thing, it will be silently scrapped a couple of months later - when the bureaucrats realize they forgot to check if alternatives existed.


If flourishing in the business -hostile environment of the EU were possible, 'sovereign cloud offerings' would have existed without bureaucratic decrees.

They exist, but the US having that silicon valley investment money tends to result in them being first to market, grabbing market share early and become the de facto standard.
Not to mention I'm sure Microsoft has positioned themselves nicely to give deals when buying into many of their services, SAAS or otherwise.

OVHcloud, Hetzner, Scaleway and the list goes on. There's a European or at least opensource alternative for pretty much everything you can think of software/digital service wise.

This should have happened ages ago, at the very least since the patriot act got introduced which just resulted in things being moved to Europe but still under US control. Which I doubt does much when push comes to shove.

 

[daffy duck]

EU finally grows a spine and all thanks to Demented Donnie's unrelenting trashing of the alliance.

I hope virtually every country on earth walks away from any relationship with USA. Australia should start by tearing up the insane AUKUS deal and also join the EU

 

[AnilD]

Europe spent two decades warning about dependence on Russian energy and Chinese manufacturing, and now it’s realizing cloud infrastructure might belong in the same category. Digital sovereignty sounds boring until your courts, hospitals, and tax systems are effectively renting computers from three foreign companies.

 

[Rapob]

Can hardly wait to hear the complaints when their dataflow slows to a crawl and they get hacked…

Kind of laughable that they think this will make a difference - this is for votes…

If anything, dataflow probably speeds up massively... haha. Microsoft actively throttles their cloud customers, and you have to contact them to avoid this (for a period, if needed) or be a top 1% customer (which pay millions every quarter, aka getting milked)

More and more EU companies and governments go Linux these days.

After all, Linux kernel is made in Europe. Can be tweaked and optimized to perfection.

Linux runs most of the cloud as a result. When it comes to security, using Linux is safer, faster and uses less ressources.

EU had tons of upcoming tech, that Microsoft bought over the years (among other companies)

AMSL is required by Intel and TSMC, you can thank EU again. No ASML, no advanced chips from Nvidia, Intel, AMD.

US literally buys up upcoming and succesful EU tech companies, to avoid competition later, and headhunts people too, happens all the time. Microsoft did this for decades. This is how they stay ahead in tech so maybe you should stop acting like Europe is behind in this segment. We are not behind, but like everyone else, we like money too and can be bought. This could easily change, as Trump is ruining this relationship slowly but surely.

Trump hates when Europe stand together but Europe has 800 million people. He don't want Europe to do well for obvious reasons. The average american thinks Europe is a country. Says enough..

And no I don't hate US, I don't have anyone really, all countries have fools but mostly people are good. I have been in 50+ countries and lived in US for around 8 years too

 

[hiropro]

Is that about speed or reliability. The US has becoming unreliable partner overnight and can not be trusted. F35s, submarines, smart devices, energy, food, Intel... Any reliance on the USA has been used at some point as a pleasure point by the US

 

[Squid Surprise]

Is that about speed or reliability. The US has becoming unreliable partner overnight and can not be trusted. F35s, submarines, smart devices, energy, food, Intel... Any reliance on the USA has been used at some point as a pleasure point by the US

So you’ll get in bed with the Chinese… just wait until you realize what untrustworthy really means…

 

[Gravitytr1]

Say what you will about the privacy or lack of with Google, AWS and Microsoft, at least their infrastructure is robust.

Knowing how governments hand out contracts, I’d wager performance will dip - not to mention they’ll be paying a premium.

Putting microslop and robust in the same sentence non ironically should be illegal. Is 2026.

 

[Gravitytr1]

EU finally grows a spine and all thanks to Demented Donnie's unrelenting trashing of the alliance.

I hope virtually every country on earth walks away from any relationship with USA. Australia should start by tearing up the insane AUKUS deal and also join the EU

Australia is pro US and Israel more than the US.

 

[Squid Surprise]

Putting microslop and robust in the same sentence non ironically should be illegal. Is 2026.

Please explain… you might not like them - and dislike Windows - but very few knowledgeable people complain about robustness when it comes to MS…

Australia is pro US and Israel more than the US.

Why are you lumping Israel in here? Anti-Semitic? Or just have an agenda to push?

 

[Pastuch]

Good luck with that! Getting rid of MS is damned near impossible at the enterprise level. These government agencies have been Microsoft indoctrinated for 30 years. Google and amazon, no problem.

 

[Puiu]

Good luck with that! Getting rid of MS is damned near impossible at the enterprise level. These government agencies have been Microsoft indoctrinated for 30 years. Google and amazon, no problem.

EU countries have already started.

It won't be a quick switch, but you have to start somewhere.

 

[trents]

Then European countries are slowly become one nation under the control of the European Union. I think they are realizing this is the only way they can compete on the 21st century geopolitical stage with super powers like the USA and China. Otherwise, they are just an assortment of small countries at the mercy of these two and maybe Russia.

 

[pnntmp]

They exist, but the US having that silicon valley investment money tends to result in them being first to market, grabbing market share early and become the de facto standard.
Not to mention I'm sure Microsoft has positioned themselves nicely to give deals when buying into many of their services, SAAS or otherwise.

OVHcloud, Hetzner, Scaleway and the list goes on. There's a European or at least opensource alternative for pretty much everything you can think of software/digital service wise.

This should have happened ages ago, at the very least since the patriot act got introduced which just resulted in things being moved to Europe but still under US control. Which I doubt does much when push comes to shove.

A handful of small local players can't meet even a tiny fraction of the demand, nor can they expand fast enough. Just collecting all the required permissions, licenses, assessments and approvals will likely take more than a decade.
A few widely used software products have any European alternative, let alone a viable one. Open source alternatives exist, a small part of them excellent, but the vast majority is incomparable to paid products.

A pile of bureaucrats sloganeering about digital sovereignty is not enough to achieve digital sovereignty.

 

[BuckarooBonzaii]

Interesting to note that private companies are exempt for the simple fact that private companies especially the big players in the EU brings in a great amount of the money and to cripple them will be suicide. The top 10 investment firms in the world manages huge assets and some of these firms manages trillions in the EU. I think 75% of companies in the EU still uses MS and somewhere embedded are the big players. As we know big players will always back up each other and when Government gets out of bounds they're pushed back in.

Digital Sovereignty will never be full blown in the EU as member States are fragmented and why shoot the geese that are laying golden eggs for you.

 

[Puiu]

Interesting to note that private companies are exempt for the simple fact that private companies especially the big players in the EU brings in a great amount of the money and to cripple them will be suicide. The top 10 investment firms in the world manages huge assets and some of these firms manages trillions in the EU. I think 75% of companies in the EU still uses MS and somewhere embedded are the big players. As we know big players will always back up each other and when Government gets out of bounds they're pushed back in.

Digital Sovereignty will never be full blown in the EU as member States are fragmented and why shoot the geese that are laying golden eggs for you.

The reason they are exempt is simple: it would destroy the market and bankrupt too many companies. They aren't stupid enough to do that and it's also not required to achieve the EUs goals.

 

[ActualViking]

So you’ll get in bed with the Chinese… just wait until you realize what untrustworthy really means…

Are you for real pretending the USI* is more trustworthy than China?

The US that among other things is saying it will take Greenland, make Canada the 51st state, is using tariffs as a weapon, making lies about never having been helped by NATO partners... and has a corrupt criminal and frankly childish pathetic president.

*Iran is right, it not USA anymore as Donald, his voters and the GOP has made it the USI.