Australia, Canada, Japan warn EU CADA could exclude Microsoft from cloud, AI markets
MSFT•Trade bodies from Australia, Canada and Japan warned that Europe’s proposed Cloud and AI Development Act (CADA) would impose vendor-based market access requirements, potentially excluding U.S. companies like Microsoft from EU cloud and AI markets. They urged revisions to ensure non-discrimination and openness in EU digital regulations.
1. Proposed EU CADA Framework
Europe’s regulators have drafted the Cloud and AI Development Act (CADA) to strengthen the bloc’s homegrown cloud, AI and semiconductor industries and reduce reliance on U.S. tech giants. Telecoms ministers will discuss the proposal as EU countries and the Parliament negotiate final details in the coming months.
2. Concerns from International Trade Bodies
The Tech Council of Australia, the Canada EU Trade and Investment Association, the Japan Association of New Economy and the Computer & Communications Industry Association jointly warned that CADA’s vendor-based eligibility criteria could lock out non-EU suppliers. They flagged risks of limited customer choice, higher costs and cross-border inefficiencies if corporate origin dictates eligibility.
3. Implications for Microsoft
Market access restrictions under CADA may limit Microsoft’s Azure and AI service deployment in Europe, reducing its competitiveness against local providers. The potential exclusion could lead to revenue pressures and strategic shifts in investment for Microsoft’s EU cloud and AI operations.
