A view from Brussels: Why the CADA sovereignty proposal deserves attention

Source Domain: iapp.org

The European Commission officially proposed a Technology Sovereignty package on June 3rd, focusing on the Chips Act 2.0, Cloud and Artificial Intelligence Development Act (CADA), an Open Source Strategy, and a Strategic Roadmap for Digitalisation and AI in Energy.
The package comprises four documents that emphasize goals such as building capacity, resilience, encouraging homegrown technological companies, and supporting AI adoption and innovation.
The CADA proposal is notably politically loaded and aims to define sovereignty in the digital space, addressing concerns over geopolitical tensions and trans-Atlantic relations.
The CADA Act seeks to enhance the EU’s cloud and AI ecosystems, emphasizing public sector investment and infrastructure. It sets criteria for cloud contracting and sovereignty in the public sector which includes important governance implications, such as limiting international data transfers and affecting third-party vendor screening processes.
The proposal includes a provision in Article 31 that allows private sector buyers to adopt these sovereignty assurance levels, which has significant compliance and governance implications.
The proposal opens up spaces for negotiation among member states who will likely debate and possibly modify certain content of the package, especially concerning the EU Commission’s authority to update assurance levels and the taxonomy of data protection.

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