The European Commission proposed rules to give European companies preference in public contracts for cloud computing and artificial intelligence services [1].
The move represents a strategic effort to decouple critical infrastructure from foreign technology. By prioritizing local providers, the EU seeks to mitigate data-security risks and reduce its systemic reliance on technology firms based in the U.S. and Asia [1, 2].
EU tech chief Henna Virkkunen unveiled the proposal on June 3, 2024 [1, 3]. The rules would specifically target the most sensitive sectors of the economy, including defense, where the commission believes domestic control over data and infrastructure is paramount [1, 2].
"For very critical sectors like defence it is very important that Europeans provide the services," Virkkunen said [1].
While the proposal favors European firms, officials said that the policy is not intended to create a closed market. The initiative aims to foster a more competitive domestic ecosystem for cloud and AI services while maintaining a level of security that foreign providers may not be able to guarantee in high-stakes environments [1, 2].
"We are not closing anyone out," Virkkunen said [1].
The proposal comes as the EU continues to scrutinize the dominance of large foreign tech firms in its digital marketplace. By shifting procurement toward local firms, the bloc intends to build a more resilient technological base that can withstand geopolitical volatility [2, 3].
“"For very critical sectors like defence it is very important that Europeans provide the services."”
This policy shift signals a move toward 'digital sovereignty' for the European Union. By leveraging public procurement to support local industry, the EU is attempting to build a viable alternative to the dominant cloud and AI architectures provided by American and Asian giants, specifically to prevent foreign intelligence or political entities from having leverage over European defense and security data.
