Industry Excitement Over New Cybersecurity Label

By Foo Yun CheeBRUSSELS (Reuters) – A total of twenty-three industry groups throughout Europe have come together to voice their support for the adoption of a draft cybersecurity certification scheme (EUCS) tailored for cloud services. This scheme, which has undergone modifications favoring major players such as Amazon, Google, and Microsoft, is currently under consideration by EU tech chief Henna Virkkunen. The European Commission, however, is showing indications of potentially delaying or even discarding the proposal, which has evolved significantly since its initial introduction by the EU cybersecurity agency ENISA back in 2020.

The primary objective of the proposed labelling scheme is to aid governments and businesses in selecting a secure and reliable cloud service provider to meet their computing requirements. Considering the substantial annual revenue generated by the global cloud computing industry, the importance of this initiative cannot be overstated.

In a joint letter dated February 11 addressed to Virkkunen, the industry groups express their earnest appeal for the expeditious adoption of the European Cybersecurity Certification Scheme for Cloud Services. According to the signatories, the revised draft from March 2024 represents a notable step forward in achieving a balance between stringent security standards and the essential open-market principles crucial for the advancement and resilience of Europe’s digital economy.

The modifications introduced in the 2024 draft, notably the elimination of requirements mandating U.S. tech giants to establish a joint venture or collaborate with an EU-based entity for data storage within the EU as a condition for attaining the highest cybersecurity label, have been praised by the industry groups. This adjustment allows the scheme to concentrate on technical criteria rather than being influenced by political considerations.

Among the signatories of the letter are notable organizations such as Allied for StartUps, the American Chamber of Commerce in various European countries, the Association of German Banks, the Association of the Internet Industry in Germany, and the Italian startup group InnovUp. Additional signatories include the Irish Business and Employers Confederation, Nederland Digitaal in the Netherlands, and the Association for the Promotion and Development of the Information Society in Portugal.

The European Commission has acknowledged the receipt of the industry groups’ letter and has assured that a response will be provided in due course.

(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)

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