The US Chamber of Commerce has already announced opposition to the draft due to competitive disadvantages.
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Brussels The European Union (EU) is planning stricter rules for US cloud providers. Only by investing in an EU company could tech giants like Amazon, Google and Microsoft receive an EU cybersecurity seal for handling sensitive data in the future, according to an EU draft seen by Reuters on Tuesday.
The US corporations and other companies involved in the joint venture should therefore only hold a minority stake. Employees who have access to EU data would have to undergo special screening and be based in one of the 27 EU countries. The cloud service must be operated and maintained from the EU and user data may only be stored and processed in the EU, the document states.
The measures are necessary to reduce the risk of third countries undermining EU regulations, standards and values, the EU said. The US Chamber of Commerce has already announced opposition due to competitive disadvantage.