Amazon.com (AMZN), Microsoft (MSFT) and Alphabet's (GOOG, GOOGL) Google may be excluded from critical European government cloud-computing contracts under proposed EU rules aimed at reducing the bloc's reliance on US technology providers, Reuters reported Monday, citing EU draft documents.
The European Commission plans to introduce strict sovereignty, data protection and procurement requirements as part of its Cloud and AI Development Act, due to be unveiled Wednesday by EU Technology Commissioner Henna Virkkunen, the report said.
The proposal, which would apply to sensitive state tenders in sectors such as banking, energy and healthcare, may favor software and hardware developed within the EU the report said.
The European Commission, Amazon, Microsoft and Google didn't immediately reply to requests for comments from.
Amazon shares fell 3.2% in Monday trading, Alphabet declined 0.6%, and Microsoft rose 2.1%.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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