EU Financial Regulators Place Amazon, Google, and Microsoft Clouds Under Supervision

Designated as Critical Third-Party Computing Providers for the Financial Industry
Risk Management Systems Under Review

The world's three largest cloud service providers have all become subject to financial supervision by the European Union (EU).

According to a Reuters report on the 18th (local time), EU regulatory authorities have designated 19 technology companies, including the three major cloud providers-Amazon Web Services (AWS), Google Cloud, and Microsoft (MS) Azure-as critical third-party computing service providers for the EU financial industry. This designation is in accordance with the Digital Operational Resilience Act (DORA), which has been in effect since January of this year.

DORA stipulates that the three regulatory bodies-the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA)-jointly designate and manage certain technology providers as critical suppliers.

The inclusion of Amazon, Google, and Microsoft on this list is believed to be due to the fact that European financial institutions primarily use their cloud services. However, it appears that these companies have been in discussions with authorities regarding this designation.

A spokesperson for AWS stated, "We have been preparing for this designation and will continue to cooperate with the authorities." Microsoft said, "We are committed to complying with European cybersecurity and digital resilience regulations."

Google Cloud also expressed a welcoming stance through a post on its website.

In addition to the cloud providers, other companies such as financial information firm Bloomberg, IBM, London Stock Exchange Group (LSEG), telecommunications company Orange, and the European branch of Tata Consultancy Services have also been designated as critical suppliers.

The regulatory authorities plan to review whether these companies have established risk management systems to ensure service recovery.

Meanwhile, the EU is currently investigating whether AWS and MS Azure should be added as "gatekeepers" under the Digital Markets Act (DMA). While both companies have already been designated as gatekeepers in areas such as shopping and advertising (Amazon), and operating systems and social networking services (Microsoft), they have not yet been designated as gatekeepers in the cloud sector.