Europe Is About To Block US Tech Giants From Its Most Sensitive Government Data
The European Commission is preparing to unveil its Tech Sovereignty Package on May 27th, and sources within the Commission have told CNBC it will include restrictions on US cloud providers like Microsoft, Amazon, and Google from processing certain categories of sensitive government data across EU member states, including financial, judicial, and health records. The move is not a blanket ban on American tech companies, whose services private businesses across Europe will still be free to use without restriction. The specific concern is the US CLOUD Act of 2018, which allows American authorities to compel US-based companies to hand over data stored anywhere in the world, including in European data centers, a legal reality that EU officials say creates an unacceptable vulnerability in the handling of sensitive public sector information. One Commission spokesperson described the effort simply as Europe waking up and getting its act together.
The Tech Sovereignty Package builds on existing EU digital frameworks including the Data Act, already in force, which mandates that cloud providers allow switching without penalty fees by 2027 and requires standardized technical interfaces to prevent vendor lock-in, and positions the EU among a growing group of governments taking concrete steps to reduce dependence on foreign digital infrastructure. European cloud providers stand to benefit significantly if the restrictions take effect, though officials have acknowledged that US providers currently hold a dominant position in public sector workloads built on years of superior infrastructure investment and deep integration with government systems. The package has not yet been formally published and key details including the exact scope of restrictions, affected data categories, and transition timelines for existing contracts remain unfinalized. The full text is expected when the Commission presents the package in two weeks.
