EU’s DORA Act Names Amazon, Google Critical Providers

On Tuesday, the European Union identified 19 critical technology firms, including Amazon Web Services, Google Cloud, and Microsoft, as essential third-party providers for the bloc’s financial sector. Starting in January 2025, under the EU’s Digital Operational Resilience Act (DORA), three EU financial regulators will have the authority to jointly designate and directly supervise specific technology providers deemed critical.

These new rules aim to shield the EU’s financial industry from risks associated with reliance on external technology services, such as cloud computing for major banking operations. Regulators are concerned about potential disruptions if a major tech provider experiences an outage.

The companies listed by the European Banking Authority, European Insurance and Occupational Pensions Authority, and European Securities and Markets Authority (ESMA) include the European branches of Amazon Web Services, Bloomberg, Google Cloud, IBM, London Stock Exchange Group, Microsoft, Orange, and Tata Consultancy Services. According to ESMA’s press release, regulators will evaluate whether these firms have sufficient risk management and governance measures to ensure service resilience.

Representatives from LSEG and Google Cloud supported the designation, while Microsoft reaffirmed its commitment to adhering to Europe’s cybersecurity laws. Amazon Web Services mentioned it has been preparing for the designation and will continue engaging with authorities. IBM highlighted ongoing cybersecurity enhancements and looks forward to collaborating with regulators.

European officials have increased concerns about the resilience of their financial systems this year, with the European Central Bank recently citing geopolitical tensions and technological disruptions as major risks to Europe’s banking sector.

Also Read – Databricks Valued at Over $130 Billion in Talks.

Meanwhile, the UK has adopted a similar framework, although no firms have been designated yet. UK regulators have proposed candidates to the finance ministry, and a government minister indicated that designations are anticipated by this time next year.