AB identified 19 Technology Companies as Critical Suppliers.

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

These 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 certain technology providers deemed critical.

The new rules aim to protect the European Union's financial sector from risks stemming from dependence on external technology providers. In particular, there are concerns about the impact on the financial sector in the event of disruptions to the technology providers used by many banks.

Among the companies identified 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 will examine whether these companies have the appropriate risk management and governance frameworks in place to ensure the resilience of the services they provide.

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

A spokesperson for Microsoft conveyed the company’s commitment to complying with Europe’s cybersecurity and resilience laws. A representative from Amazon Web Services stated that they are preparing for this designation and will remain in communication with the relevant authorities.

Bloomberg, IBM, Orange, and Tata did not immediately provide a comment.

Concerns among European officials regarding the resilience of the financial sector have increased this year. The European Central Bank stated on Tuesday that geopolitical tensions and technological disruptions are among the risks affecting the European banking sector.

The United Kingdom has also implemented a similar regulation, but no companies have been designated yet. Regulators have advised the UK Treasury on potential candidates, and a government official stated earlier this month that designations are expected by this time next year.