The European Union is reportedly planning a significant change that could affect major American tech companies like Microsoft, Amazon, and Google. According to sources familiar with the situation, the EU Commission intends to introduce a “Tech Sovereignty Package” aimed at reducing Europe’s dependency on foreign technology. This initiative is set to be revealed on May 27 and is designed to keep sensitive government information—such as health records and financial data—within Europe.
The new regulations would identify certain critical sectors that must utilize European cloud services. While it won’t completely exclude US companies from government contracts, their involvement in managing high-sensitivity data would be limited.
A Commission official explained that the main idea is to ensure that particular sectors rely on European cloud infrastructures.
### Why This Matters Now
The call for “digital sovereignty” has become more pressing as relations with the US have grown strained. There are concerns over the 2018 US Cloud Act, which allows American authorities to access data held by US companies even if that data is stored in Europe. In response, the EU aims to strengthen its own tech industry to better protect its data.
The upcoming package is expected to feature initiatives like The Chips Act 2.0, designed to boost local semiconductor manufacturing, and the Cloud and AI Development Act (CADA), which promotes homegrown AI and cloud solutions.
A spokesperson for the Commission remarked that this is a pivotal moment for Europe to take control of its technological future. Earlier this year, France announced plans to replace services like Microsoft Teams and Zoom with a government-created video conferencing tool called “Visio” by 2027. Additionally, the EU has allocated 180 million euros to support sovereign cloud projects, ensuring that European institutions have local options for their digital requirements.
