The European Commission has unveiled proposals aimed at preventing foreign governments or companies from using a 'kill switch' to disrupt vital technology services across the EU. The move is part of a broader effort to reduce 'risky dependencies' on suppliers from the US and China in cloud computing, artificial intelligence, and semiconductors.
Henna Virkkunen, the European Commission vice-president for tech sovereignty, highlighted concerns over the US Cloud Act, which allows federal authorities to access data stored by US providers in other countries. 'It was not in line with our rules here,' she said, adding that the EU must ensure no one has the 'kill switch possibility' for sensitive services and data related to security and law enforcement.
The proposals, which require approval from member states and the European Parliament, could strain relations with the Trump administration. Under the draft law, EU member states would need to assess risks from cloud computing providers in sensitive areas like defence and border management, and potentially switch providers if deemed risky. US companies might have to comply with EU data protection rules and prove they would not be compelled to surrender EU data to US authorities.
The Computer and Communications Industry Association, whose members include Amazon and Google, criticised the plans as 'a dangerous recipe for progressive market shutdown' that could push trusted providers out of parts of the EU market. However, the Commission argues that the EU's reliance on foreign providers for over 80% of digital products and services creates 'excessive technological dependencies'.
The EU also aims to boost its AI infrastructure by fast-tracking datacentre construction and promoting European semiconductor production. However, experts like Olivier Darmouni from HEC Paris doubt the feasibility of building an advanced manufacturing facility for cutting-edge AI chips within the necessary timeframe, though producing other chips could be beneficial.
