European Commission to tighten EU market access amid foreign interference fears

The European Commission is set to tighten access to the EU market with a draft regulation that would allow public authorities to exclude foreign companies presenting risks of interference from public procurement. The document, obtained by Euronews and due to be presented in September, proposes that public buyers take appropriate measures at any stage of the procurement process – from planning and market consultation to contract award and execution – to protect the Union's security and public safety.

The draft comes amid heightened geopolitical tensions, with concerns over data leaks from sensitive public services to Beijing and Washington, as well as the weaponisation of the EU's dependence on rare earths and technology products from China. Risks may arise from firms whose ownership, control, or financing structure bears risks of undue interference, or those exposed to third-country legislation that could compel disclosure of sensitive information or interfere with contract performance.

The regulation would allow the introduction of a European preference in public procurement, though it would not be mandatory. Such provisions could confirm the EU's protectionist shift towards a "Made in Europe" strategy, which the EU executive already proposed last March for strategic sectors like clean technologies, automotive, and energy-intensive industries.

Foreign interference and data transfer risks have intensified as the US and China both adopted legislation allowing them to request that companies under their jurisdiction transfer data stored in the EU. Some European governments are already acting: in April, France ended its contract with Microsoft to protect health data, and in June it replaced US firm Palantir with French company ChapsVision for processing sensitive information of the domestic intelligence service. Several EU countries, including Germany, France, Italy and Denmark, have cancelled or denied public contracts to Chinese telecoms giant Huawei over security concerns.

The draft regulation also aims to protect critical infrastructure, critical supply chains, critical technologies or essential services, and resilience against physical, cyber or hybrid threats. Last year, China cut off the EU from exports of rare earth minerals essential for green technologies and defence. It also stopped Dutch-based Nexperia, owned by China's Wingtech, from importing Chinese chips crucial for the EU's car industry.