Don't let hyperscalers hijack digital sovereignty, EC told

"The letter's central argument is that sovereignty must be defined by control, not by whether a provider merely has an EU presence. That means effective ownership of technology and protection from extraterritorial laws like the US CLOUD Act, which can compel American tech companies to provide data to US authorities, including data stored overseas, subject to legal process."

"They want the EU's first cloud and AI legislation to cultivate a competitive native cloud ecosystem, rather than enable what CISPE calls "sovereignty-washing" - measures that would further entrench the dominance of global hyperscalers, most of them American."

"CISPE's specific requests include reserved procurement shares for European providers handling sensitive data, avoidance of large-scale frameworks that effectively lock out local players, and a requirement that taxpayer-funded cloud and AI investments prioritize European supply chains."

Twenty-four European cloud and digital service providers, represented by CISPE, are calling on the European Commission to establish authentic tech sovereignty in the upcoming Cloud and AI Development Act. They argue that true sovereignty requires effective ownership and control of technology, protection from extraterritorial laws like the US CLOUD Act, and prevention of "sovereignty-washing" that entrenches global hyperscaler dominance. CISPE proposes reserved procurement shares for European providers, avoidance of large-scale frameworks excluding local players, prioritization of European supply chains in taxpayer-funded investments, and funding for developing local alternatives for critical components. The association emphasizes that sovereignty cannot be achieved through mere EU presence, citing Microsoft's admission that it cannot guarantee data sovereignty under US legal injunctions.

Read at Theregister