AB has identified 19 technology companies as critical suppliers.

Paris - European Union regulators on Tuesday designated 19 technology companies, including Amazon Web Services, Google Cloud, and Microsoft, as critical third-party computing providers for the financial sector.

The new regulations are being implemented under the European Union's Digital Operational Resilience Act (DORA), which will come into effect in January 2025. Three European-level financial regulators will be able to directly supervise particular technology providers designated as critical.

The new rules aim to protect the European Union's financial sector from the risks associated with its dependence on external technology providers. Specifically, there are concerns about the impact on the financial sector if a technology provider used by many banks experiences an outage.

Among the companies named by the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority are Bloomberg, IBM, London Stock Exchange Group, Orange, and Tata Consultancy Services.

Regulators stated that they would examine whether these companies have appropriate risk management and governance frameworks to ensure the resilience of the services they provide.

A spokesperson for the London Stock Exchange Group expressed satisfaction with the designation. Google Cloud also made a similar statement on its website.

A Microsoft spokesperson reported that the company is committed to complying with Europe's cybersecurity and resilience laws. A spokesperson for Amazon Web Services indicated that they are preparing for this designation and will remain in communication with the relevant authorities.

Bloomberg, IBM, Orange, and Tata did not immediately respond to requests for comment.

Concerns among European authorities about the resilience of the financial sector have increased this year. On Tuesday, the European Central Bank stated that geopolitical tensions and technology outages are among the risks affecting the banking sector in Europe.

The United Kingdom has also implemented similar regulations, but no firms have been designated yet. Regulators has advised the UK’s financial ministry on candidates, and a government official mentioned earlier this month that identifications are expected by this time next year.