VERBOND VAN BELGISCHE ONDERNEMINGEN / FEDERATION DES ENTREPRISES DE BELGIQUE VBO / FEB

What the Commission proposes

The European Commission proposes the Cloud and AI Development Act to establish a framework of measures aimed at strengthening Europe's cloud and artificial intelligence ecosystem. The initiative focuses on three pillars, which include research and innovation for greening infrastructure, industrial investments to triple EU data processing capacity, and actions to increase secure data processing capacities for cloud providers in the EU. Ultimately, the proposal seeks to address infrastructure gaps, reduce critical dependencies on non-European providers, and enhance the Union's digital sovereignty and competitiveness.

• Addresses the EU gap in cloud and AI infrastructure capacity through three distinct pillars.
• Promotes research and innovation to accelerate sustainable cloud and AI computing technologies.
• Aims to triple the EU data processing capacity over the next 5 to 7 years via industrial investments.
• Introduces measures to increase secure data processing capacities for high-critical use cases.
• Establishes common criteria for sovereign cloud computing services to reduce extraterritorial dependencies.
• Promotes open-source solutions and joint public procurement activities across the public sector.

Summary written by AI from the Commission's document.

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1. fast-permitting, national facilitator, funding mechanisms, joint procurement, federation) to solve very clear challenges of today (e.g. sustainability, skills, leverage of open source, aggregation of demand, sovereignty) will allow European providers to expand their market presence, in the EU and beyond. Capacity to innovate CADA goes directly at the heart of improving the capacity to innovate (PM8, PM9) and the improvement of skills (PM23). The funding mechanisms (PM8, PM9), complemented with the cloud and AI adoption scheme targeted towards SMEs and the skills certification (PM23) will boost the capacity to innovate at product, service and process level. The spillover effects of research funds, where a myriad of EU stakeholders can participate (e.g.

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2. Access to Advanced Digital Services Enhanced trust and interoperability in the EU cloud and AI market gives SMEs in other sectors access to advanced digital services. Businesses can safely and efficiently adopt cloud-based tools for e-commerce, logistics, HR, or data analytics, even if they are not part of the cloud industry itself. 2. Cross-Border Expansion Standardised regulations and secure, cross-border data flows make it easier for SMEs to expand across Member States. Companies can scale products and services without facing legal or technical barriers, simplifying international operations within the Single Market. 3. Innovation through Collaboration SMEs can integrate AI, IoT, or data-driven services into their offerings, driving modernization in traditional industries.

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3. Diverging public procurement practices for cloud and AI computing services and diverging sovereignty criteria may prevent providers from fully benefitting of the internal market. If EU intervention takes the form of a legislative proposal, it can be based on Article 114 TFEU. Article 173(3) TFEU is the basis for enhancing the EU’s competitiveness and innovation capacity. It enables measures to accelerate industry’s adaptation to structural changes; encourage an environment favourable to initiatives and to the development of undertakings throughout the EU, particularly small and medium-sized undertakings and favourable to cooperation between undertakings; and foster better exploitation of the industrial potential of policies of innovation, research and technological development.

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What the Commission proposes

The European Commission has launched a public consultation on territorial supply constraints, which are limitations imposed by large manufacturers to prevent retailers from buying products in one Member State and reselling them in another. These practices fragment the Single Market, limit consumer choice, and lead to significant price differences for daily consumer goods across the EU. The initiative aims to introduce new tools to address these constraints beyond situations currently captured by competition law, as announced in the May 2025 Single Market Strategy. This consultation gathers input from stakeholders to better understand the impact and scale of these supply restrictions.

• Territorial supply constraints hinder retailers from buying goods in one Member State to resell in another
• Such practices fragment the Single Market and limit consumer choice
• They contribute to significant price differences for daily consumer goods across the EU
• The initiative follows the Single Market Strategy announced in May 2025
• New tools are proposed to address these constraints beyond existing competition law

What is asked: Respondents are asked to provide information and comments on territorial supply constraints, their impact on the Single Market, consumer choice, and retail prices, as well as views on potential tools to address them.

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What the Commission proposes

The European Commission is conducting a review of the scope, functioning, and efficiency of Regulation (EU) 2022/1031 on the International Procurement Instrument (IPI). The review evaluates the implementation of the regulation, including investigation processes, consultations, thresholds, exceptions, and the first adopted IPI measure regarding medical devices from China. It aims to assess the instrument's effectiveness in tackling procurement barriers in non-EU countries and ensuring a level playing field for EU operators. The findings will be presented in a report to the European Parliament and the Council by August 2027.

• Review of the scope, functioning, and efficiency of the IPI Regulation pursuant to Article 14.
• Assessment of investigation procedures, third-country consultations, thresholds, and types of measures.
• Evaluation of the application and implementation of the first IPI measure concerning Chinese medical devices.
• Analysis of the efficiency of online complaint tools and rules for determining origin.
• Execution of a 12-week online public consultation through the Have your say portal.
• Publication of a factual summary of consultation results and an implementation report to the European Parliament and the Council.

What is asked: Respondents are asked to provide views and evidence on the implementation, scope, functioning, and efficiency of the IPI Regulation in tackling non-EU procurement barriers, achieving market openness, and ensuring a level playing field, as well as the application of specific measures adopted under the Regulation.

Summary written by AI from the Commission's document.

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1. 4 We are consulting stakeholders to assess the implementation of the IPI Regulation in terms of: - the scope, functioning and efficiency of the Regulation in tackling non-EU countries procurement barriers, achieving openness of non-EU countries public procurement markets and ensuring a level playing field for EU businesses, goods, services and works; - implementation of specific measures adopted under the IPI Regulation. Target audience The target audience is composed of, in particular, interested parties affected by measures or practices in non-EU counties (e.g. businesses, business associations and cross-industry organisations), EU contracting authorities and EU contracting entities.

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2. CALL FOR EVIDENCE FOR AN INITIATIVE This document aims to inform the public and stakeholders about the Commission’s work, so they can provide feedback and participate effectively in consultation activities. We ask these groups to provide views on the Commission’s understanding of the problem and possible solutions, and to give us any relevant information they may have. TITLE OF THE INITIATIVE International Procurement Instrument review LEAD DG - RESPONSIBLE UNIT Directorate-General for Trade & Economic Security - Unit B.3, Digital Trade, Intellectual Property and Public Procurement

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3. 2 A. Political context, problem definition and subsidiarity check Political context The International Procurement Instrument Regulation (IPI Regulation), which entered into force on 29 August 2022, aims to improve reciprocal access to international procurement markets in areas not covered by international commitments under the Agreement on Government Procurement or bilateral free trade agreements. The IPI Regulation tackles procurement barriers in non-EU countries by empowering the European Commission to initiate investigations against alleged restrictions in third- country procurement markets and consult with the countries concerned to encourage market opening. If consultations do not lead to satisfactory results, the EU may restrict access to its procurement market for companies, goods and services from countries that continue applying restrictions to EU firms.

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