The United States’ decision to restrict foreign access to advanced artificial intelligence models is strengthening demands in Brussels for stricter European regulations aimed at reducing dependence on American technology providers.
The move, which led to the immediate suspension of access to the AI models Mythos 5 and Fable 5 through Amazon Web Services, has become a powerful argument for lawmakers and industry groups seeking to toughen the European Commission’s proposed Cloud and AI Development Act (CAIDA). According to Euractiv, critics of the current proposal believe the incident exposed serious gaps in the EU’s approach to digital sovereignty.
CAIDA, as proposed by the Commission, encourages public authorities to reduce reliance on non-European cloud providers but does not impose binding requirements on private companies. The US shutdown has now prompted renewed calls to broaden the scope of the legislation and introduce stronger safeguards for businesses operating critical infrastructure.
“Europe’s hospitals, energy grids and financial systems run on foreign technology that foreign governments can access, manipulate, or simply switch off”, Maltese Socialist MEP Alex Agius Saliba told Euractiv in an email.
Saliba said the Socialist Group in the European Parliament intends to push for stricter provisions during negotiations on the legislation. The group wants critical private entities to assess vulnerabilities stemming from their dependence on foreign cloud providers, a position that has gained urgency following Washington’s actions.
According to Euractiv, supporters of tougher rules argue that the US decision demonstrated how strategic dependencies can quickly become regulatory and security concerns for the European Union. What had previously been framed as a long-term industrial policy objective is increasingly being treated as an issue of resilience and strategic autonomy.
Frank Karlitschek, co-founder of German software provider Nextcloud, criticised the Commission’s proposal as insufficient.
“Europe needs stronger digital industrial policy if it is to protect its economic and political independence”, Karlitschek told Euractiv.
He argued that the existing draft contains only “weak” obligations for the public sector and entirely overlooks the private sector, despite the role businesses play in operating essential services.
Sebastiano Toffaletti, secretary general of the European Digital SME Alliance, also advocated expanding the legislation’s reach. Per Euractiv, he said that the strategic dependency measures included in CAIDA “should be extended to private entities operating critical infrastructure.”
The developments could shape the political battle over the final form of the legislation. French Digital Minister Anne Le Hénanff suggested that the US restrictions had reinforced France’s longstanding push for stronger European cloud sovereignty measures. Writing on social media, she said the shutdown “strengthens my resolve” in favour of EU tech sovereignty.
France has historically supported stricter requirements to promote European technological independence, and Le Hénanff’s remarks indicate Paris could advocate for tougher obligations on private-sector operators as negotiations progress.
Germany, however, has yet to reveal whether it supports expanding CAIDA’s scope. According to Euractiv, German Digital Minister Karsten Wildberger declined to comment on whether private entities should be subject to the law’s mitigation measures, stating only that he was “currently assessing” the package.
As EU institutions prepare to debate the details of CAIDA, the fallout from the US AI shutdown is increasingly influencing the regulatory conversation. Per Euractiv, lawmakers and industry advocates are using the episode to argue that voluntary measures may no longer be sufficient, and that Europe’s next digital sovereignty law should include stronger, more binding protections against dependence on foreign technology providers.
Source: Euractiv
