Key facts
- Trade bodies from Australia, Canada, and Japan have raised concerns about the EU's proposed laws to boost its own cloud, AI, and chip industries.
Trade bodies from Australia, Canada, and Japan have warned that the EU's push for homegrown technology could exclude non-EU companies from the European market. They expressed concerns that proposed market access requirements based on a company's origin could lead to discriminatory treatment and reduce opportunities for trusted foreign investors.
The EU's drive for technological sovereignty could lead to trade disputes and limit choices for European consumers and businesses if it imposes discriminatory market access rules on foreign tech companies.
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.
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