In a move that could potentially impact tech giants like Amazon Inc. (NASDAQ:AMZN), Microsoft Corp. (NASDAQ:MSFT), and Alphabet Inc.‘s Google (NASDAQ:GOOGL), the European Union (EU) is reportedly planning to propose stringent criteria for cloud computing services in significant state tenders.

The EU’s proposal, part of the European Commission’s Cloud and AI Development Act, is set to be unveiled by EU tech chief Henna Virkkunen. The Act aims to reduce the bloc’s dependence on U.S. tech and strengthen EU businesses, reported Reuters on Tuesday, citing a draft document.

The bloc’s push for greater digital sovereignty in sectors such as banking, healthcare, and energy is being fueled by concerns about reliance on U.S. tech firms and the extraterritorial reach of legislation like the Cloud Act, which permits U.S. authorities to request data from American providers even when it is hosted abroad.

The proposal would require public procurement contracts to consider mandatory non-price factors, including preferences for software and hardware developed within the ...