08:22 AM EDT, 04/11/2024 (MT Newswires) -- Nearly 20 large European companies have signed a letter opposing a draft proposal to allow Amazon ( AMZN ) , Alphabet's Google ( GOOG ) , and Microsoft ( MSFT ) to bid for European Union cloud computing contracts, Reuters reported.

The draft proposal for a certification scheme for cloud services lacks sovereignty requirements contained in a previous draft that compelled American companies to partner with EU-based firms in order to compete for contracts.

Deutsche Telekom, Orange, Airbus, and 15 other companies said in a joint letter cited by Reuters that EU members should reject the proposal because European data could be accessed by foreign governments.

Dropping the sovereignty clause could also slow the growth of nascent EU cloud providers competing against US rivals, the letter said, according to Reuters.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 185.06, Change: -0.89, Percent Change: -0.48