According to a document that was reviewed by Reuters, the proposed EU cybersecurity labeling regulations eliminated a requirement that service providers should be independent from laws that are not in the EU. This may make it simpler for companies like Amazon Web Services (AWS), Google, and Microsoft to compete for cloud computing contracts in the European Union.
According to Reuters, the European Union has had a difficult time reaching a consensus on a cybersecurity certification system (EUCS) that would vouch for the cybersecurity of cloud services and assist governments and businesses inside the bloc in selecting a trustworthy and secure vendor for their operations.
IDC projects double-digit growth in cybersecurity expenditure in Europe in 2024, with a projected 12.3% increase. This indicates that the year ahead will see strong momentum. Spending in the area is expected to increase gradually between 2022 and 2027, reaching $84 billion in that year.
EU Cybersecurity Label
The move comes at a time when Big Tech is exploring the lucrative government cloud sector as a potential growth driver. While the EU is concerned about unlawful state monitoring, some countries would be concerned that the dominance of cloud providers in the United States may hinder the development of new competitors in the EU.
According to a draft that was sent to EU governments in the previous year, in order for U.S. tech firms to be eligible for the EU cybersecurity label, they were expected to establish a joint venture with an EU-based business, as well as store and process consumer data inside the union.
Read the full article by Reuters here.
