EU Proposes New Cloud Storage Legislation Amid Concerns Over US Data Access

In a bid to enhance data sovereignty and security, the European Commission is set to introduce legislation targeting the predominance of American tech giants in the European cloud storage market. Currently, a significant portion of data belonging to European citizens and businesses is stored on platforms operated by US companies such as Amazon, Microsoft, and Google, which collectively control about 75% of the market.

The forthcoming legislation aims to mitigate this reliance on US cloud services, which has raised concerns regarding potential access to European data by US intelligence agencies, including the CIA and NSA. Existing agreements, such as the EU-US Data Privacy Framework, have failed to alleviate worries about the security of data stored by American firms, as US law permits government access to data held by these companies.

Concerns regarding the implications of this American control over cloud data have been voiced by European lawmakers. Criticism has been directed towards the European Union's dependency on US digital products, which is viewed as a threat to both societal safety and economic competitiveness. The EU's objective is to ensure that European data remains secure and is managed within the continent's jurisdiction.

As various European institutions currently rely on US cloud services, there are calls for a transition towards more secure, Europe-based providers. Reports indicate that several EU Commission departments utilize Amazon's cloud services, raising questions about the transparency and security of data management within these institutions.

Germany's federal states are also moving towards US-based cloud solutions, with multiple regions opting for Microsoft services. However, there are ongoing debates regarding the appropriateness of storing sensitive social data on these platforms, with some governmental bodies expressing reservations.

To counteract these challenges, the European Commission is developing a comprehensive law focused on cloud services and artificial intelligence (AI). This initiative is designed to establish stringent standards for data security, encryption, and storage locations that comply with European regulations. The proposed legislation will also create incentives for collaboration among European cloud providers to foster a competitive market.

European Commission President Ursula von der Leyen has emphasized the importance of building technological sovereignty within Europe. The new legislation is expected to be presented by the end of 2025, although there are calls from certain lawmakers to accelerate the process in response to increasing concerns about reliance on American technology.

As the EU navigates this complex landscape, the challenge remains to implement effective measures that protect data while promoting a competitive and secure cloud storage environment within Europe. The outcome of this legislative initiative will be crucial in determining the future of data sovereignty in the region.