The December 3, 2025 debate at the European Parliament's Internal Market and Consumer Protection (IMCO) Committee hosted a lively exchange on cloud computing services, spotlighting a notable clash between Max von Thun of the Open Markets Institute and Guido Lobrano from ITI over EU cloud market dominance, sovereignty, and interoperability.
Von Thun criticized the structural dominance of hyperscalers controlling approximately 70% of the EU cloud market, tying this concentration to higher prices, systemic lock-in, and vulnerabilities to foreign jurisdiction laws such as the US Cloud Act. He advocated for stronger public procurement preferences favoring EU providers to enhance sovereignty and competitiveness. On the other side, Lobrano acknowledged concerns about market concentration but opposed mixing competition law with sovereignty policies. He warned against nationality-based restrictions that could reduce diversity and urged allowing provisions under the Data Act to operate fully before layering additional rules. Lobrano favored a risk-based "trusted provider" model rather than nationality-based criteria.
This debate unfolded within a multi-panel public hearing that addressed EU competitiveness, barriers to cloud adoption, market concentration, security concerns, and the implementation of Data Act Articles 34–35 focused on interoperability and portability. The hearing concluded with a presentation of the 2030 Consumer Agenda by Commissioner Michael McGrath addressing digital fairness and consumer protections.
Several participants put forth concrete proposals. Von Thun proposed redirecting public spending to prioritize providers that enhance EU cloud sovereignty, suggesting procurement reforms favoring domestic providers. Raphaël Daniel (OVHcloud) pushed for mandatory interoperability standards aligned with EU values, which would significantly impact cloud service providers and foster competition. Commissioner McGrath outlined measurable policy efforts in the forthcoming Digital Fairness Act (DFA), including clarifications of scope, enforcement improvements, protections against dark patterns on popular platforms, and rollout of an EU Action Plan on fraud with deadlines in early 2026.
Conversely, Lobrano and Amal Taleb (SAP) gave more cautious, less detailed commitments, emphasizing simplifying complex Data Act obligations and realistic software-as-a-service (SaaS) interoperability frameworks rather than overambitious technical standards. The divergence here reflects a cleavage between increasing EU regulatory intervention to bolster sovereignty and competition versus cautious regulation attentive to market complexity and international supply diversity.
The debate showcased cleavages over increasing vs. cautious EU regulatory powers in cloud services, national sovereignty vs. market openness, and mandatory vs. voluntary interoperability standards. Von Thun’s proposals may benefit EU cloud providers and national authorities by promoting local competitiveness and data security but risk raising costs for consumers and complicating operational models for multinational clients. Lobrano’s approach favors business flexibility and diverse service offerings, potentially sustaining lower prices and innovation but may not sufficiently address sovereignty concerns.
The hearing also underscored infrastructure and energy challenges with calls for streamlined permitting and acknowledgement of increasing private-cloud adoption for resilience. On consumer protection, McGrath’s 2030 Consumer Agenda aims to harmonize EU-wide digital rules, address online fraud, and protect minors through concrete plans, signaling a tighter regulatory environment ahead.
Looking forward, the IMCO Committee is likely to pursue balanced measures refining Data Act implementation, enforcing interoperable standards with stakeholder input, and advancing the Digital Fairness Act to tackle consumer harms. The interplay between sovereignty-focused regulatory reforms and maintaining open, competitive markets will remain a pivotal theme shaping the EU’s digital cloud landscape.