Revisions in draft cyber security labeling rules by the European Union may facilitate easier participation for tech giants such as Amazon, Google, and Microsoft in bidding for EU cloud computing contracts. As per a document seen by Reuters, the scrapped requirement that vendors remain independent from non-EU laws could potentially lower barriers for these companies.
The EU has encountered challenges in establishing a cyber security certification scheme (EUCS) aimed at verifying the cyber security standards of cloud services. The scheme aims to aid governments and businesses within the EU in selecting secure and trusted vendors for their operations.
This development is significant as major players in the technology sector are increasingly eyeing the government cloud market for growth opportunities. While these companies seek to expand their presence in this lucrative sector, concerns persist within the EU regarding issues such as illegal state surveillance and the dominance of US-based cloud providers, which could impede the growth of European competitors.
Earlier iterations of the draft, circulated among EU member states last year, included provisions requiring US tech giants to establish joint ventures with EU-based companies and process customer data within the EU to qualify for the EU cyber security label. However, such sovereignty requirements faced criticism from various quarters, including European banks, clearing houses, insurance groups, and startups, who argued that technical considerations should take precedence over political and sovereignty obligations.
The latest draft, dated March 22, has done away with such sovereignty requirements. Instead, cloud vendors are now only required to furnish information regarding the location of data storage and processing, along with details about applicable laws.
At present, EU countries are reviewing the revised draft, following which the European Commission is expected to finalize the scheme. However, the EU executive declined to provide comments on the matter when approached by Reuters.
