Trade bodies representing technology companies in Australia, Canada, and Japan have voiced concerns that the European Union's initiative to foster its own technology sector could inadvertently shut out non-EU players. The warning comes a week after the European Commission proposed new legislation aimed at bolstering domestic cloud, AI, and chip industries, reducing reliance on U.S. tech giants like Google and Microsoft.
In a joint letter to EU ministers, the trade groups, including the Tech Council of Australia, the Canada EU Trade and Investment Association, the Japan Association of New Economy, and the CCIA, highlighted potential issues with proposed market access requirements. These requirements, which could affect companies based on their headquarters, ownership, or control outside the EU, are seen as a threat to their members' participation in Europe's digital ecosystem.
The groups argued that basing eligibility for services like cloud, AI, or software on a vendor's corporate structure or geographic origin could result in discriminatory treatment. They warned that such measures might reduce opportunities for established foreign companies that have invested in Europe and could lead to inefficiencies, increased costs, and complications for international business models. The trade bodies urged EU member states and the European Parliament to ensure the proposed Cloud and AI Development Act (CADA) adheres to principles of non-discrimination, proportionality, and openness to key trading partners.