EU pushes for tech sovereignty initiative

In a significant move, the EU is advocating for ‘tech sovereignty’ to lessen its dependence on US technology, as laid out in a comprehensive legislative package. Jaap Templeman, head of digital business practice in the Simmons & Simmons Amsterdam office, highlights that “this package is a welcome and necessary boost to the EU’s competitive position in AI and will hopefully ward off a long-term technological dependence on Big Tech. Sadly, geopolitical developments show how vulnerable transatlantic dependence can be. The strict sustainability and security framework around the development of datacentre, AI and chips capabilities might appear counterproductive to improving the EU's ability to compete but is of course necessary. Any company or country that disregards environmental and security concerns will and should not ultimately prevail in this space."

Andrew Joint, a digital business partner in the Simmons & Simmons London office, expresses his optimism regarding the EU's ability to achieve its tech sovereignty goals, saying, “I am increasingly optimistic about the EU being able to achieve its goals regarding tech sovereignty from a procurement perspective. Whether appropriate sovereign technology solutions are available in our global technology landscape is a different challenge. There are, obviously, opportunities for the system and the rules to be challenged and at times unfairly circumvented.” He further notes that the EU courts adopt a purposeful approach, which prioritises the spirit of the law rather than a strict literal interpretation.

The EU's aspirations for cloud sovereignty are supported by the European Commission's ‘Cloud Sovereignty Framework’. This framework delineates various nuanced categories to evaluate a provider’s EU sovereign status, examining legal, compliance, operational, security, and strategic aspects. Importantly, the framework places increased value on the geographic location of key components and the overall strategic EU-led nature of the vendor. However, the true challenge lies in ensuring effective implementation, measurement, and verification of these criteria.

The core objective of the EU is to diminish its reliance on providers whose operations and governance may threaten the continuity, resilience, and security of the region and its inhabitants. This presents a notable challenge to UK-based companies post-Brexit. Despite potential scoring difficulties in the assessment criteria, UK businesses can still showcase their capabilities in areas such as access, interference, security, and resilience, demonstrating alignment with the EU's overarching goals through innovative strategies and adaptability.