The European Union is picking a fight with some of the most powerful companies on Earth.
EU leaders are actively debating new measures that would limit the ability of major US and Chinese tech firms to compete for European public cloud contracts and mobile satellite spectrum. A decisive vote on cloud procurement regulations is scheduled for June 3, 2026, with the proposed rules expected to significantly disadvantage the American hyperscalers that currently dominate the market.
Amazon, Google (Alphabet), and Microsoft collectively control 63% of the global cloud market. Europe’s political class has decided that number is too high, at least when it comes to government infrastructure.
The cloud battle: sovereignty vs. scale
In October 2025, the European Commission launched a tender process under a newly established Cloud Sovereignty Framework. That framework bore its first fruit in April 2026, when the Commission awarded a €180 million contract for sovereign cloud services to four European firms: Post Telecom, StackIT, Scaleway, and Proximus.
The upcoming June 3 vote will determine whether new procurement rules formally disadvantage US cloud giants in public sector bids. EU member states are divided on how far to push, with some countries worried about scaring away foreign investment, while others argue that technological dependence on non-EU providers poses a national security risk, particularly as US-China tensions continue to escalate.
Satellite spectrum: reserving the sky for Europe
EU leaders are simultaneously negotiating how to divide up the 2 GHz mobile satellite frequency band, and the current plan would reserve roughly two-thirds of that spectrum for European companies.
The primary beneficiary would be IRIS2, the EU’s own satellite constellation designed to enhance connectivity with around 290 satellites in orbit. International operators like SpaceX’s Starlink and Amazon’s low-Earth orbit service wouldn’t be completely shut out — the compromise being discussed would allow limited access for non-EU providers.
The bigger picture: digital sovereignty as doctrine
The EU’s Digital Markets Act, which initially targeted the competitive behavior of large digital platforms, is now expected to expand its scope to include cloud and AI services. If that expansion proceeds as anticipated, it would layer additional regulatory requirements on top of the procurement restrictions being debated this week.
The internal disagreements among EU member states shouldn’t be understated. Countries with strong domestic tech sectors, like France and Germany, tend to support aggressive sovereignty measures. Smaller nations that rely heavily on US cloud infrastructure for government operations are understandably more cautious. The June 3 vote will reveal where the balance of power sits.
What this means for investors
The four firms that won the €180 million sovereign cloud contract — Post Telecom, StackIT, Scaleway, and Proximus — represent the vanguard of what could become a much larger European cloud ecosystem. If procurement rules formally preference EU providers in government tenders, these companies and their peers stand to capture a growing share of public sector spending that previously defaulted to American platforms.
Companies positioned within the IRIS2 ecosystem could benefit from guaranteed spectrum access, while Starlink and Amazon’s satellite division may need to adjust their European expansion plans around tighter allocation windows.
