EU Cloud and AI Development Act restricts U.S. access to government cloud contracts through assurance levels

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The EU's proposed Cloud and AI Development Act establishes assurance levels for public cloud contracts that restrict U.S. company access to sensitive government data. Level 3 contracts (about 9% of EU public procurement) would be largely closed to American firms unless they operate through EU joint ventures, while Levels 2–4 are required for defence, security, justice, and critical infrastructure.