EU Commission wants to slow down US tech giants on cloud contracts

Background: US Law as a Trigger

The background to the initiative is a US law that obliges cloud providers to grant US authorities access to customer data even if it is stored abroad. The EU Commission sees this as a risk to Europe's digital sovereignty.

The Commission stated that the initiative to improve digital independence is "crucial for strengthening its own technological capabilities as well as for Europe's competitiveness and security."

The draft is to be officially presented on Wednesday. Subsequently, both the European Parliament and the EU member states must decide on the regulation. The Commission itself declined to comment on the details of Cada.

Tensions with Washington Expected

The planned measures could exacerbate tensions with the US government, which has already reacted angrily to existing regulations in the technology sector. Observers expect resistance from Washington.

In addition to public administration, the financial sector, healthcare, and energy supply are also affected by the planned award conditions. In these security-critical areas, the protection of European data is to take precedence.

Europe's Digital Sovereignty in Focus

The legislative package is part of a broader EU strategy to reduce dependence on non-European technology groups and to expand its own capabilities in the cloud and AI sectors.

The news was disseminated on June 1, 2026, on Deutschlandfunk and reported by APA. The official presentation of the draft is eagerly awaited, as it could be trend-setting for the European digital market.

If the regulation is adopted in its current form, US corporations would have to fundamentally adapt their business models in Europe or would be excluded from lucrative contracts worth billions.