EU Draft Rules Propose Tougher Cybersecurity Label Requirements for Amazon, Google, Microsoft

The companies can secure the label only via a joint venture with an EU-based firm, according to an EU draft document.

By Reuters | Updated: 10 May 2023 11:57 IST

EU Draft Rules Propose Tougher Cybersecurity Label Requirements for Amazon, Google, Microsoft

Photo Credit: Reuters

Amazon and other US tech giants involved in the joint venture can only have a minority stake

Highlights

Certified cloud services are operated only by companies based in the EU
Any entity from outside the EU won't have effective control over the CSP
EU countries will review the draft later this month

Amazon, Alphabet's Google, Microsoft, and other non-European Union cloud service providers looking to secure an EU cybersecurity label to handle sensitive data can only do so via a joint venture with an EU-based company, according to an EU draft document seen by Reuters.

US tech giants and others involved in the joint venture can only have a minority stake, and employees that have access to EU data would have to undergo specific screening and have to be located in the 27-country bloc, the document said.

The document adds the cloud service must be operated and maintained from the EU, all cloud service customer data stored and processed in the EU, and that EU laws take precedence over non-EU laws regarding the cloud service provider.

Google I/O 2023 Begins Today: How to Watch the Keynote, What to Expect

The latest draft proposal from the EU cybersecurity agency ENISA concerns an EU certification scheme (EUCS) that would vouch for the cybersecurity of cloud services and determine how governments and companies in the bloc select a vendor for their business.

While the new provisions underscore EU concerns of interference from non-EU states, they are likely to spark criticism from US tech giants worried about being shut out from the European market.

Big Tech is looking to the government cloud market to drive growth in the coming years while a potential boom in AI after the viral success of OpenAI's ChatGPT could also boost demand for cloud services.

WhatsApp for Wear OS Reportedly in Testing: Check Details Here

"Certified cloud services are operated only by companies based in the EU, with no entity from outside the EU having effective control over the CSP (cloud service provider), to mitigate the risk of non-EU interfering powers undermining EU regulations, norms and values," the document said.

"Undertakings whose registered head office or headquarters are not established in a Member State of the EU shall not, directly or indirectly, solely or jointly, hold positive or negative effective control of the CSP applying for the certification of a cloud service," it said.

The document said the tougher rules will apply to personal and non-personal data of particular sensitivity where a breach may have a negative impact on public order, public safety, human life or health, or the protection of intellectual property.

Google Photos to Get a New Edit Interface for Tablets, Big Screens

The latest draft could fragment the EU single market as each country has full discretion to impose the requirements whenever it sees fit, an industry source said.

The US Chamber of Commerce has previously said that the plan puts US companies on an unequal footing. The EU says the moves are necessary to protect the bloc's data rights and privacy.

EU countries will review the draft later this month after which the European Commission will adopt a final scheme.

OnePlus recently launched its first tablet in India, the OnePlus Pad, which is only sold in a Halo Green colour option. With this tablet, OnePlus has stepped into a new territory that's dominated by Apple's iPad. We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.