EU wants to favour European firms for most sensitive cloud, AI contracts

Article excerpt

The EU proposed Wednesday that European companies get preferential treatment in government contracts for cloud computing and AI services in sensitive sectors like defense, aiming to reduce reliance on foreign tech firms. EU tech chief Henna Virkkunen defended the move as necessary protection for critical infrastructure rather than protectionism, saying "we are not closing anyone out." The proposal forms part of a broader European strategy to build technological sovereignty and limit dependence on companies from outside the bloc.