Microsoft, Google, And Amazon Should Not Be Discriminated Against, EU Groups Demand As They Rally For 'Inclusive' Cybersecurity Label

A coalition of 26 European industry groups has called for a non-discriminatory approach to the proposed European Union Cybersecurity Certification Scheme (EUCS) for cloud services. The groups demanded that tech giants like Microsoft Corp. MSFT, Alphabet Inc.’s GOOG GOOGL Google, and Amazon.com, Inc AMZN should not be discriminated against.

What Happened: The European Commission, the EU cybersecurity agency ENISA, and EU member states are set to convene on Tuesday to discuss the EUCS. This scheme is designed to aid governments and businesses in selecting secure and reliable cloud service providers, reported Reuters.

The industry groups, which include the American Chamber of Commerce to the EU and the European Payment Institutions Federation, have expressed concerns that the EUCS might unfairly target major U.S. tech companies.

“We believe that an inclusive and non-discriminatory EUCS that supports the free movement of cloud services in Europe will help our members prosper at home and abroad, contribute to Europe’s digital ambitions, and strengthen its resilience and security,” the groups said in a joint letter to EU countries.

The proposed EUCS, which has been under review since 2020, has undergone several changes. A recent version eliminated the sovereignty requirements, which previously mandated U.S. tech giants to establish a joint venture or collaborate with an EU-based company to store and process customer data within the EU to qualify for the highest level of the EU cybersecurity label.

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The industry groups have emphasized the importance of an inclusive and non-discriminatory EUCS to support the free movement of cloud services in Europe, contributing to Europe’s digital ambitions and strengthening its resilience and security.

Why It Matters: The proposed EUCS has been a topic of contention in the tech industry. The removal of sovereignty requirements was a significant shift from the previous proposal, which had mandated U.S. tech giants to collaborate with EU-based companies to store and process customer data in the EU.

This development comes in the wake of increasing cybersecurity concerns globally, with major tech companies being at the forefront of these discussions. For instance, Microsoft faced criticism for its security lapse earlier this year and is now under scrutiny for its security measures after breaches by Russian and Chinese hackers.

Meanwhile, companies like CrowdStrike are taking proactive measures to enhance their cybersecurity capabilities, with collaborations like the one with NVIDIA Corp to leverage advanced AI technology.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote