BRUSSELS - The Business Software Alliance (BSA) responded to the European Commission's Cloud and AI Development Act (CADA), supporting the objective of strengthening Europe's cloud and AI ecosystem while raising concerns about several key elements of the proposal.

As the voice of the enterprise software industry, BSA supports efforts to strengthen Europe's resilience, digital infrastructure, and technological capabilities. The Commission is right to address concerns around operational continuity, cybersecurity, and strategic dependencies, but this proposal takes us down the wrong path.

Several elements of the proposal raise significant concerns. These include cloud sovereignty requirements that could restrict market access based on ownership and control structures rather than objective security outcomes; data localization mandates; procurement provisions that favor specific technologies and supply chains; and broad powers to expand or tighten sovereignty requirements over time.

“The Commission has identified real challenges that deserve serious attention,” said Thomas Boué, VP & Director General, Policy – EMEA at BSA. “Our concern is that CADA addresses those risks with instruments that go considerably further than security policy and will not deliver better security or resilience. Europe's competitiveness depends on its ability to attract investment, scale innovation, and remain connected to global technology ecosystems.”

BSA is particularly concerned that the proposed sovereignty framework could make it harder for public sector organizations to access innovative cloud and AI services, while creating uncertainty for providers operating across European and international markets.

“The ambition behind this package is the right one,” Boué added. “The challenge now is making sure that new requirements strengthen Europe’s position without making it harder to innovate, invest and compete. Europe needs policies that improve security and resilience without closing off the partnerships, technologies and investment that help deliver them."

BSA looks forward to engaging with policymakers throughout the legislative process and contributing constructively to a framework that strengthens Europe’s digital future while preserving competition, innovation, and security.