The US CLOUD Act of 2018 allows American authorities to compel US-based technology companies to provide requested data, regardless of where that data is stored globally. This places European organizations in a precarious position, as it directly clashes with Europe's own stringent privacy regulation, the General Data Protection Regulation (GDPR)... Furthermore, these warrants often come with a gag order, legally prohibiting the provider from informing their customer that their data has been accessed. This renders any contractual clauses requiring transparency or notification effectively meaningless. While technical measures like encryption are often proposed as a solution, their effectiveness depends entirely on who controls the encryption keys. If the US provider manages the keys, as is common in many standard cloud services, they can be forced to decrypt the data for authorities, making such safeguards moot....
American hyperscalers have recognized the market demand for sovereignty and now aggressively market 'sovereign cloud' solutions, typically by placing datacenters on European soil or partnering with local operators. Critics call this 'sovereignty washing'... [Cristina Caffarra, a competition economistand driving force behind the Eurostack initiative] warns that this does not resolve the fundamental problem. "A company subject to the extraterritorial laws of the United States cannot be considered sovereign for Europe," she says. "That simply doesn't work." Because, as long as the parent company is American, it remains subject to the CLOUD Act...
Even when organizations make deliberate choices in favour of European providers, those decisions can be undone by market forces. A recent acquisition in the Netherlands illustrates this risk. In November 2025, the American IT services giant Kyndryl announced its intention to acquire Solvinity, a Dutch managed cloud provider. This came as an "unpleasant surprise" to several of its government clients, including the municipality of Amsterdam and the Dutch Ministry of Justice and Security. These bodies had specifically chosen Solvinity to reduce their dependence on American firms and mitigate CLOUD Act risks.
Still, The Register provides several examples of government systems that are "taking concrete steps to regain control over their IT."
Austria's Federal Ministry for Economy, Energy and Tourism now has 1,200 employees on the European open-source collaboration platform Nextcloud, leading several other Austrian ministries to also implement Nextcloud. (The Ministry's CISO tells the Register "We can see our input in Nextcloud releases. That is a feeling we never had with Microsoft.")
France's Ministry of Economics and Finance recently completed NUBO (which the Register describes as "an OpenStack-based private cloud initiative designed to handle sensitive data and services.")
In November the International Criminal Court in The Hague announced it was replacing its Microsoft office software with a European alternative.
The German state of Schleswig-Holstein is replacing Microsoft products with open-source alternatives for 30,000 civil servants
Thanks to long-time Slashdot reader mspohr for sharing the article.
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