Europe reportedly wants stricter criteria for bidding on government cloud projects.
That’s according to A a report Monday (June 1) from Reuters, which said that the move by the European Commission (EC) could leave companies like Amazon, Google and Microsoft Banned from such projects
The proposal is part of the European Commission’s Cloud and Artificial Intelligence Development Act, which is set to be announced this week along with other measures aimed at reducing Europe’s dependence on American technology while promoting European companies, the report said, citing documents seen by Reuters journalists.
According to the report, the proposal includes mandatory “non-price” criteria for public tenders, or procurement bids, such as requirements for software and hardware developed within the European Union, which Reuters noted would put US tech giants at a disadvantage.
Reuters said that other law criteria for selecting cloud vendors include data protection standards and the extent of openness of corporate markets to cloud services.
The report added that this plan may witness a violent reaction from the administration of President Donald Trump, which did so He criticized European Union laws Designed to put limits on big tech companies. In a speech last year, the president described the EU’s restrictions on American tech giants as a “form of taxation.”
Advertisement: Scroll to continue
The European Commission told Reuters that the legislation was “crucial to strengthen Europe’s technological capabilities, and for Europe’s competitiveness and security” but declined to comment further.
In other tech regulation news, PYMNTS recently wrote about changing federal contracting rules, which now subject companies to “overlapping requirements that extend to… Cyber security Certifications, new purchasing authorizations and diversity restrictions.
The report added that this pressure leads to: Increasing share Industry to embed artificial intelligence (AI) directly into compliance processes to keep pace.
The report cited an article by Chris CrowderExecutive Vice President of Government Contracting Solutions at Onaniton the Federal News Network, based on findings from Unanet’s 2026 Benchmarking Report.
Crowder said 36% of government contracting companies are already using AI to support compliance work, while another 42% of these companies are actively exploring it.
“Compliance is no longer just about avoiding sanctions,” PYMNTS wrote. “In a market where federal agencies pay close attention to contractor performance, companies that handle compliance well are gaining a real advantage in winning new business. Companies that rely on manual processes and periodic reviews are increasingly at a disadvantage.”
