
Companies warn Commission against restrictive EU cloud criteria
The Commission began gathering feedback after it said in April it plans an AI and Cloud initiative, as part of its so-called AI Continent Action Plan, in a bid to help boost the uptake of artificial intelligence tools by companies.
When it comes to cloud and computing infrastructure in Europe, the Commission said there is a gap between available capacity and needs in the bloc, given the rising demands stemming from AI. Currently, European companies are heavily reliant on US companies such as Microsoft and AWS.
The consultation aims to find a solution for 'the lack of a competitive EU-based offer of cloud computing services at sufficient scale to serve highly critical use cases with particularly high security needs, as found in various economic sectors and the public sector,' the consultation text said.
While companies say they support the idea for a stronger European cloud, they question how to define the guidelines for sovereignty. German digital association Bitkom, for example, said the focus should be on freedom of choice, and resilience and diversification.
Microsoft echoes the comments saying that 'rather than imposing restrictive policies or measures [...] the EU should focus on diversifying supply chains, [...] this will allow governments and customers to rely on an open and competitive market and to choose from a diverse range of cloud service providers, based on their needs and on objective and risk-based criteria such as governance, risk management, security, transparency and performance.'
Software trade group BSA, warned that implementing strict requirements could 'severely restrict the ability of European customers' to choose the services that meet their needs.
'Many European companies currently use non-European cloud providers to have access to technical performance, cost, or service features that are not provided by some European vendors,' it adds.
German internet industry group Eco said that measures should be 'shaped transparently and proportionally, it should be ensured that international cloud providers are not excluded on geographical aspects alone.'
The Commission received more than 130 submissions – mostly from Germany, Spain and Belgium – to the consultation which closes Thursday. The proposal is set to come out in December.
Other Commission consultations that cover the other initiatives of the AI Continent Action Plan – which covers infrastructure, data access, cloud, skills and simplification – are still pending.
The plan aims to transform Europe's traditional industries into 'powerful engines of AI innovation and acceleration', as Commission President Ursula von der Leyen announced in February in Paris.
Meanwhile, the European Parliament is also working on a report, with recommendations to boost technological sovereignty and reduce dependence on non-European technology providers. This could feed into the Commission's work.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Fashion Network
2 hours ago
- Fashion Network
Shein faces government crackdown in France as minister confirms ongoing investigations
The French government has sent a clear signal to the ultra-fast fashion sector. On July 3, Trade Minister Véronique Louwagie announced that Shein had been fined €40 million for deceptive business practices. Speaking at the annual event hosted by Alliance du Commerce —an organization representing 16,000 stores and 150,000 retail workers in France—Louwagie addressed an audience of retail chain and department store representatives in Paris. During the morning's discussions, concerns were repeatedly raised about the competitive imbalance posed by ultra-fast fashion players who operate outside the regulatory frameworks that European retailers must follow. The fine issued against Shein followed an investigation by the DGCCRF (Directorate-General for Competition, Consumer Affairs and Fraud Control). Louwagie added that 'other investigations are underway,' although she declined to provide further details. Responding to frustration within the retail sector over the perceived disparity in enforcement between domestic and foreign platforms, Louwagie announced new enforcement measures. 'I've asked for stricter controls on foreign platforms—specifically, a threefold increase in product sampling to verify compliance,' she said. 'We're also implementing full-spectrum checks on all elements involved.' She noted that, in coordination with Customs Minister Amélie de Montchalin, a new protocol would ensure systematic information sharing between customs authorities and the DGCCRF regarding incoming parcels. Louwagie emphasized that enforcement is also expanding at the European level. 'At the end of 2024, we began verifying platform compliance with the Digital Services Act,' she explained. 'A specific procedure has been initiated by the European Commission targeting Temu, and a separate investigation is underway concerning Shein. France, along with Germany and Ireland, is challenging multiple practices that violate EU regulations. Shein has 30 days to respond.' Amid calls to replicate the 2021 delisting of the e-commerce site Wish, the minister acknowledged that such action remains an option. 'Wish failed to comply with official injunctions, which led to its removal. While today's platforms often respond to enforcement measures, I'm pushing the European Commission to revise the legal framework so that platforms can still be delisted under certain conditions—even if they cooperate.' Highlighting the scale of the issue, Louwagie noted that 800 million parcels valued under €150 enter France annually, part of a broader influx of 1.5 billion parcels into the country and 4.5 billion across Europe. The stakes, she said, are high—not only in terms of consumer health and safety but also in protecting European businesses from unfair competition. She reiterated the government's support for ending customs exemptions on low-value imports. After months of scrutiny surrounding Shein's business model and its impact on the local economy, the July 3 announcement marks a significant turning point. Whether it paves the way for lasting structural change across the industry remains to be seen.

LeMonde
3 hours ago
- LeMonde
Global economy braces for Trump's trade war and its consequences
America's trading partners will finally know their fate. After three months of stormy talks, the United States is expected to announce, by July 9, new trade agreements with the world's leading economies. President Donald Trump stated on Tuesday, July 1, that he did not plan to extend discussions. According to Secretary of the Treasury Scott Bessent, negotiations are focusing on 15 to 18 agreements with major partners. Since early April, only two agreements have been signed: one with the United Kingdom and another with Vietnam. A deal was also reached with China to reduce the exorbitant tariffs the two countries had imposed on each other. Tariffs of "30% or 35%" could be imposed on imports from Japan, compared with the 24% rate announced in April, after Trump criticized Tokyo at the end of June for refusing to commit to buying American rice. The European commissioner for trade, Maros Sefcovic, is expected in Washington this week to try to secure an agreement that would reduce US customs barriers in key sectors such as automobiles and steel. After the initial shock of the US president's tariff announcements, it was his many about-faces on trade policy that unsettled investors. This climate of uncertainty prompted companies to defer investments, risking an economic slowdown. Reflecting this loss of confidence, the dollar posted its worst performance in 50 years in the first half of the year. The dollar index, which measures the US currency against a basket of other major currencies, fell 10.8% over the first six months of the year.


Fashion Network
4 hours ago
- Fashion Network
LVMH and luxury giants undermine EU pushback on US trade threats
For LVMH, the stakes are particularly high. Chairman Bernard Arnault has cautioned that failure to reach a trade deal could have serious consequences for France's wine and spirits industry. Urging restraint, Arnault has advocated for a cooperative path forward and even floated the idea of a US–EU free trade zone. Arnault, who has maintained longstanding ties with Trump, has reportedly visited Washington multiple times since the former president's return to the political spotlight. His son, Alexandre Arnault, also met with officials in May in support of trade de-escalation. 'I hope to succeed, with my modest means and my contacts, in convincing Europe to adopt the most constructive attitude possible,' Arnault told French lawmakers in May. Luxury isn't the only sector weighing in. German automakers—including BMW, Mercedes-Benz and Volkswagen—have also proposed their own solutions directly to US officials. Mercedes, for instance, has shifted production of its GLC SUV to Alabama, while other firms have announced expanded US investments as diplomatic signals. These moves, though strategic, have raised concerns in Brussels. EU officials fear that an over-accommodating response could encourage companies to increasingly shift production and investment across the Atlantic, weakening Europe's industrial core. Industry leaders contend that reciprocal tariffs would do more harm than good. While retaliation may appear symbolic, it risks reducing EU access to essential US-made technologies, components, and research ecosystems—particularly in high-growth areas such as fashion innovation, AI, and biotechnology. Meanwhile, industry groups representing French Cognac and Irish whiskey producers have intensified lobbying efforts, warning that retaliatory tariffs would unjustly penalize products unrelated to the core trade dispute. These sectors rely heavily on the US and Chinese markets for exports and have become particularly vulnerable to policy crossfire. The European Commission has outlined proposed tariffs on $112 billion worth of US goods. However, pressure from member states and industry groups may lead to as much as €70 billion worth of items being removed from the final list—significantly diluting the EU's leverage. As a potential compromise, the EU is reportedly open to a universal 10% tariff on many of its exports, while seeking lower rates for key sectors, such as aerospace, pharmaceuticals, semiconductors, and luxury goods. With stakes rising, the next few weeks will be critical. For LVMH and other fashion leaders, the hope is that quiet diplomacy will succeed where confrontation may fail—and that maintaining access to the US market remains central to the EU's trade strategy.