EU New Tech Package May Restrict Microsoft, Amazon, and Google From Handling Public Sector Sensitive Data

The European Commission is set to introduce a Tech Sovereignty Package later this month that could limit companies like Microsoft, Amazon, and Google from processing certain sensitive data for public sector organizations in Europe.

The restrictions are expected to cover financial, judicial, and health-related data, according to two unnamed Commission officials cited by CNBC. A Commission spokesperson described the initiative as "about Europe waking up and getting its act together."

What the EU’s Tech Sovereignty Package Would Cover

The restrictions, as described by sources within the Commission, are expected to target public organizations specifically. Private companies will still be free to select any cloud platform they prefer for handling their proprietary data. The main focus appears to be on US-based cloud providers, which currently dominate European public sector cloud workloads.

The Commission sees the package as a way to support European cloud providers and boost sovereign cloud options. One commissioner said the goal is to create opportunities for EU-based companies to grow and reach institutional users who are currently reliant on US cloud platforms.

Additionally, plans include reforming public procurement to offer more diverse cloud and AI service options for European public bodies.

How It Fits Into Europe’s Broader Regulatory Push

The Tech Sovereignty Package is being developed alongside two other major regulatory initiatives: the Cloud and AI Development Act and Chips Act 2.0. These efforts are part of a broader European effort to reduce reliance on US-based technology infrastructure.

European authorities have been working for years to create a sovereign cloud market. The proposed restrictions on US providers mark a more significant intervention than previous voluntary frameworks and could impact existing contracts held by Microsoft Azure, Amazon Web Services, and Google Cloud with European public sector bodies.

What Remains Unclear About the EU’s Tech Sovereignty Package

The Tech Sovereignty Package has yet to be formally introduced. Commission members are still reviewing the specific provisions before the package is published. Details such as the scope of restrictions, the categories of data involved, the implementation timeline, and any transition provisions for existing public sector contracts have not been finalized.

The EU has not made any comments on how these restrictions might interact with existing data protection frameworks or with US companies offering EU-based data residency services designed to comply with GDPR and related regulations.

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