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The European Commission unveiled a "tech sovereignty" package on June 3, proposing new rules on cloud computing, AI and semiconductors to reduce the bloc's reliance on foreign technology providers, which supply over 80% of its digital products and services.

The European Commission unveiled a "tech sovereignty" package on June 3, proposing new rules on cloud computing, AI and semiconductors to reduce the bloc's reliance on foreign technology providers, which supply over 80% of its digital products and services.

The package's Cloud and AI Development Act introduces four tiers of data sovereignty for public procurement. The highest tier, covering areas such as defence, would effectively bar non-European firms from winning contracts to prevent a foreign "kill switch" scenario.

The package's Cloud and AI Development Act introduces four tiers of data sovereignty for public procurement. The highest tier, covering areas such as defence, would effectively bar non-European firms from winning contracts to prevent a foreign "kill switch" scenario.

Commission Executive Vice-President Henna Virkkunen said it would be "very difficult" for U.S. companies to meet the EU's strictest cloud criteria, citing the 2018 U.S. Cloud Act, which allows American law enforcement to access user data regardless of where it is stored.

Commission Executive Vice-President Henna Virkkunen said it would be "very difficult" for U.S. companies to meet the EU's strictest cloud criteria, citing the 2018 U.S. Cloud Act, which allows American law enforcement to access user data regardless of where it is stored.

The package includes Chips Act 2.0, a follow-up to the EU's 2023 Chips Act, aimed at reducing overdependence on foreign chip design and manufacturing. The EU currently produces around 10% of the world's semiconductors and wants to double that share by 2030.

The package includes Chips Act 2.0, a follow-up to the EU's 2023 Chips Act, aimed at reducing overdependence on foreign chip design and manufacturing. The EU currently produces around 10% of the world's semiconductors and wants to double that share by 2030.

The Cloud and AI Development Act aims to triple the EU's data center capacity within five to seven years. The Computer and Communications Industry Association, whose members include Amazon and Google, called the package "discriminatory" against non-European companies.

The Cloud and AI Development Act aims to triple the EU's data center capacity within five to seven years. The Computer and Communications Industry Association, whose members include Amazon and Google, called the package "discriminatory" against non-European companies.

The EU spends an estimated 264 billion euros annually on U.S. cloud software, according to a 2025 report by French consultancy Asteres. Amazon, Microsoft and Google together account for around 70-80% of the European cloud computing market.

The EU spends an estimated 264 billion euros annually on U.S. cloud software, according to a 2025 report by French consultancy Asteres. Amazon, Microsoft and Google together account for around 70-80% of the European cloud computing market.

EU Unveils Tech Sovereignty Package to Cut Foreign Reliance

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EU Unveils Tech Sovereignty Package to Cut Foreign Reliance

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