Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

EU drops sovereignty requirements in cybersecurity certification scheme, document shows

Published 04/03/2024, 02:25 PM
Updated 04/03/2024, 05:16 PM
© Reuters. FILE PHOTO: European Union flags fly outside the European Commission headquarters in Brussels, Belgium, March 1, 2023.REUTERS/Johanna Geron/File Photo

By Foo Yun Chee

BRUSSELS (Reuters) - Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL)'s Google and Microsoft (NASDAQ:MSFT) may find it easier to bid for EU cloud computing contracts after draft cybersecurity labelling rules scrapped a requirement that vendors should be independent from non-EU laws, according to the document seen by Reuters.

The European Union has struggled to agree to a cybersecurity certification scheme (EUCS) to vouch for the cybersecurity of cloud services and help governments and companies in the bloc to select a secure and trusted vendor for their business.

The move comes as Big Tech looks to the lucrative government cloud market to spur growth. The EU on the other hand fears illegal state surveillance while some governments worry that the dominance of U.S. cloud providers may inhibit nascent EU rivals.

One draft circulated to EU governments last year required U.S. tech giants to set up a joint venture with an EU-based company and store and process customer data in the bloc to qualify for the EU cybersecurity label.

Such so-called sovereignty requirements sparked criticism from European banks, clearing houses, insurance groups and some startups which said technical provisions rather than political and sovereignty obligations should prevail.

© Reuters. FILE PHOTO: European Union flags fly outside the European Commission headquarters in Brussels, Belgium, March 1, 2023.REUTERS/Johanna Geron/File Photo

The latest draft dated March 22 removed such requirements, with cloud vendors only obliged to provide information about the location of the storage and processing of their customers' data and about applicable laws.

EU countries are now reviewing the tweaked draft after which the European Commission will adopt a final scheme. The EU executive did not respond to a request for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.