Microsoft (MSFT) and Amazon (AMZN) are two of the key U.S. tech titans jointly labeled by several European watchdogs as “critical” providers of third-party information communication technology (ICT) services to the finance industry in the region.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
The designation comes on the same day the European Commission launched an investigation to determine whether to bring the two tech giants under its rules for “gatekeepers” of the cloud computing industry.
The new label considers the tech majors as having “systemic importance” to the bloc and seeks to ensure greater oversight into the companies’ risk management for the ICT services they provide.
EU Seeks ICT Oversight under DORA
The European watchdogs noted that the label was given under the bloc’s Digital Operational Resilience Act (DORA). DORA, which came into effect earlier in January, requires financial institutions in the region to prepare for ICT disruptions such as cyberattacks or system failures.
Other firms designated as critical ICT providers include enterprise software powerhouse Oracle (ORCL), IT and cloud computing heavyweight IBM (IBM), financial data and analytics provider Bloomberg, and consulting and IT services firm Accenture (ACN), among others. The designations were issued by the European Banking Authority, the European Securities and Markets Authority, and the European Insurance and Occupational Pensions Authority.
“The designated critical ICT third-party providers provide a range of ICT services (e.g., from core infrastructure to business and data services) to financial entities of all types and sizes across the European Union, reflecting their pivotal role within the financial ecosystem,” the European watchdogs explained in a statement.
The regulators noted that the companies were notified of the designation and received the opportunity to submit their responses. The update comes at a time when the EU’s policies on AI and online media platforms are testing the bloc’s ties with the U.S.
What Are the Best ICT Stocks to Buy?
Using the TipRanks Stock Comparison tool, investors can study how the ICT companies mentioned in this article compare — based on Wall Street’s analysts’ assessments. See the chart below.
