SkarpChapter 9 of 17
Building a Shared Public-Sector Cloud Market
The proposal seeks not merely to regulate cloud purchasing but to aggregate it, share public resources, and steer demand toward European value and innovative firms. This module examines procurement quality criteria, the EuroCloud platform, central purchasing governance, open-source reuse, and the final legal machinery.
1. Reading This Text as a Legislative Proposal
Status first
As of July 20, 2026, this is Commission proposal COM(2026) 502 final, adopted June 3, 2026. The legislative procedure remains ongoing, so it is not yet a final, applicable Regulation.
Four-part design
The text moves from shared public cloud capacity, to Commission-led procurement, to open-source reuse, and finally to the legal machinery that would govern the proposed Regulation.
Read the verbs carefully
Shall creates a proposed duty; may gives a proposed option; powers to adopt implementing or delegated acts leave operational detail for later legal acts.
2. Article 34: Creating the EuroCloud Federation
The proposed institution
Article 34(1): "The European public sector cloud federation (the ‘EuroCloud Federation’) is hereby established." This is the proposal's central institutional creation.
Membership is voluntary
Participation "shall be open for the participation of Union entities and public sector bodies on a voluntary basis." Eligible bodies may request that the Commission admit them.
Two platform functions
The Commission must provide at least a catalogue of available services and a service platform for exchanging and orchestrating compute, storage, and network resources.
Details later
Article 34(4) leaves participation procedure and request-template details to Commission implementing acts under the Article 46(2) examination procedure.
3. Article 35 and Article 36: Sharing Capacity Without Profit
The two roles
A sharing entity provides a service; a using entity receives it. Both must be EuroCloud Federation members for Article 35 sharing.
Control over infrastructure
The sharing entity must own the hardware and provide the service. Indirect ownership through an intermediate legal entity is allowed only where the sharing entity exercises control over it.
Commission gatekeeping
Before sharing, the provider must demonstrate compliance. The Commission assesses the information and allows sharing only where Article 35(1) and 35(2) conditions are fulfilled.
Cost recovery, not pecuniary interest
"The amount of the fee shall be limited to the costs that the sharing entity incurs in relation to the sharing of the service". Article 36 separately funds Commission administration.
4. Article 37: The Commission as a Public Digital Buyer
What can be bought?
Article 37 lets the Commission "procure data centre services, cloud computing services, software and AI systems" for specified public-sector participants.
Who participates?
Member State contracting authorities, Union entities, and Commission-selected partner organisations are collectively called participating entities in this Chapter.
Two purchasing models
The Commission may run framework contracts or dynamic purchasing systems for participants, or act as a wholesaler that acquires, resells, and exceptionally donates services and supplies.
Procurement support
The Commission may also provide infrastructure, advice, procedure management, invoicing, and other administration, directly or through other delivery arrangements.
5. Article 38: Agreement and Steering Committee Governance
The entry threshold
Before any Chapter IV procurement, "the Commission and at least two Member States shall enter into an agreement" on the practical arrangements.
Mandate plus operational responsibility
The agreement mandates the Commission to procure for participants, but the Commission remains responsible for launches, procedure and contract choices, and awards.
What the Steering Committee does
It provides strategic oversight, proposes a fixed-period procurement agenda, and approves each procedure's strategic direction before the Commission launches it.
Access rules matter
Accession conditions for Member State contracting authorities must be transparent and non-discriminatory, using size, minimum amounts, and other objective criteria where relevant.
6. Articles 39 and 40: Procurement Compliance, Late Access, and Fees
Compliance effect
A participating entity is deemed to meet applicable Union procurement-law obligations when acquiring through Commission-awarded Chapter IV contracts, systems, or ancillary support.
Late dynamic-system access
Late entrants may request access during a dynamic purchasing system only after joining the Article 38 agreement, and only for future invitations to tender.
The numerical ceiling and deadline
Approval is available "provided that the cumulative requests do not exceed 50% of the initial estimated quantities" and "shall be approved within 10 working days of receipt of the request".
How procurement fees work
Fees are set in advance and must be proportionate, cost-effective, and reflect comparable practice. They "shall be sufficient to cover those costs."
7. Articles 41 to 44: Open Source as Reuse Infrastructure
Open source first is qualified
Article 41 promotes use and reuse of open standards and open-source components, but requires consideration of functionality, security, total cost, and other justified objective criteria.
When software is released
Where a rights-holder makes software reusable under an open-source licence, it "shall do so using a catalogue or repository that is connected to, and made accessible through, the EU OSS Catalogue".
A free central access point
The Commission maintains the EU OSS Catalogue on the Interoperable Europe portal. It "shall be accessible electronically free of charge."
OSPO Network
The Network supports cooperation on licensing, security, maintenance, procurement, reusable projects, and voluntary guidance. The Commission must convene and chair meetings "at least twice a year."
8. Title V: Delegation, Committee Procedure, Review, and Timing
Delegated acts
The listed delegation powers "shall be conferred on the Commission for an indeterminate period of time", but Parliament or Council may revoke them at any time.
Control over a delegated act
Following notification, Parliament and Council generally have two months to object; either may initiate an extension of three months.
Review cycle
Evaluation occurs "By [date of entry into force plus 4 years], and every 5 years thereafter", with special attention to SMEs and new competitors.
Why no calendar date is available
The proposed Regulation would enter force on the twentieth day after Official Journal publication and apply one year later. As of July 20, 2026, the proposal is still ongoing.
9. Flashcards: Core Terms and Thresholds
Flip each card, then explain the rule aloud in your own words. Focus especially on who acts, what condition applies, and whether the rule is a duty or a permission.
- EuroCloud Federation participation
- It is voluntary for Union entities and public sector bodies. They may request the Commission to join.
- Sharing entity
- A EuroCloud member that shares services. It must own the relevant hardware directly or indirectly and provide the service; indirect ownership requires control over the intermediate legal entity.
- Using entity
- A EuroCloud member receiving data centre or cloud-computing services from a sharing entity.
- Sharing-service fee limit
- "The amount of the fee shall be limited to the costs that the sharing entity incurs in relation to the sharing of the service" and must not constitute a pecuniary interest under the cited rules.
- Minimum Article 38 agreement
- The Commission and at least two Member States must enter into an agreement before Chapter IV procurement activity.
- Dynamic purchasing system late-access ceiling
- Cumulative requests must not exceed 50% of the initial estimated quantities of envisaged purchases.
- Dynamic purchasing system response deadline
- The Commission must approve an eligible request within 10 working days of receiving it.
- EU OSS Catalogue
- A Commission-maintained centralised catalogue for accessing reusable software made available by Union entities and public sector bodies; it is electronically accessible free of charge.
- OSPO Network meeting frequency
- The Commission must convene and chair a meeting of Network members at least twice a year; meetings may be online.
- Evaluation cycle
- By four years after entry into force, and every five years thereafter.
10. Quiz: Applying the Dynamic Purchasing System Rule
A dynamic purchasing system initially estimates purchases of 800 service units. Participating entities that joined the Article 38 agreement after the system launched submit late-access requests totaling 360 units. One more eligible entity requests 80 units. Under Article 39(5), what is the correct result?
Should the Commission approve the additional 80-unit request under the Article 39(5) late-access rule?
- Yes, because the total would be 440 units, which remains below the 50% ceiling of 400 units.
- No, because the total would be 440 units, exceeding the 50% ceiling of 400 units.
- Yes, because late access is unlimited while the dynamic purchasing system remains valid.
- No, because only entities that joined before the system launched can participate.
Show Answer
Answer: B) No, because the total would be 440 units, exceeding the 50% ceiling of 400 units.
Article 39(5) permits approval only where cumulative requests do not exceed 50% of the initial estimated quantities. Fifty percent of 800 is 400. Existing requests total 360; adding 80 produces 440, so the ceiling would be exceeded. The late-access possibility is specifically for entities acceding to the Article 38 agreement after the system has launched.
11. Quiz: Open Source and Governance
Choose the statement that most accurately reflects Articles 41 to 44 and the final provisions.
Which statement is correct under the supplied text?
- Every public-sector software asset must be released under an open-source licence through the EU OSS Catalogue.
- Open-source use is encouraged without regard to security, functionality, or total cost.
- When an entity holding intellectual-property rights makes software available for reuse under an open-source licence, it must use a catalogue or repository connected to and accessible through the EU OSS Catalogue.
- The OSPO Network must meet once annually and cannot meet online.
Show Answer
Answer: C) When an entity holding intellectual-property rights makes software available for reuse under an open-source licence, it must use a catalogue or repository connected to and accessible through the EU OSS Catalogue.
Article 42 creates a specific publication-route obligation when rights-holding Union entities or public-sector bodies make software available for reuse under an open-source licence. Article 41 qualifies open-source encouragement by requiring consideration of functionality, security, total cost, and other justified objective criteria. Article 44 requires OSPO Network meetings at least twice yearly and permits online meetings.
Key Terms
- OSPO Network
- The Network of Open Source Programme Offices established by the Commission to facilitate cooperation on open-source obligations and reuse.
- Union entity
- An entity of the Union referred to throughout the proposal as a potential federation member or procurement participant.
- Using entity
- A EuroCloud Federation member that receives services shared by a sharing entity.
- Delegated act
- An act adopted under a delegated power, subject in the supplied text to expert consultation, notification, Parliament/Council objection rights, and possible revocation of the delegation.
- Sharing entity
- A EuroCloud Federation member that provides data-centre or cloud-computing services to another member under Article 35.
- EU OSS Catalogue
- The Commission-maintained centralised catalogue for accessing reusable public software; it is hosted on the Interoperable Europe portal and available electronically free of charge.
- Implementing act
- A Commission act used in this text to set practical details, such as participation procedure, technical measures, or fee rules, through the Article 46(2) examination procedure.
- Framework contract
- A contractual procurement arrangement that can be concluded by the Commission for services intended for participating entities.
- Public sector body
- A public body eligible, under the supplied text, to request participation in the EuroCloud Federation and to participate in specified open-source arrangements.
- Steering Committee
- The Article 38 governance body providing strategic oversight of procurement activities and strategic direction before procedures are launched.
- EuroCloud Federation
- The proposed European public-sector cloud federation established in Article 34 to facilitate sharing of public-sector data-centre and cloud-computing services.
- Participating entity
- A Member State contracting authority, Union entity, or Commission-selected partner organisation participating in Chapter IV procurement activities.
- Central purchasing body
- A body acting as a purchaser for other contracting authorities; Article 37 permits the Commission to perform specified central-purchasing functions.
- Dynamic purchasing system
- A procurement system that the Commission may operate, with a specific Article 39 rule allowing certain late-access requests within a 50% quantity ceiling.
- Intermediate legal entity
- An entity through which a sharing entity may indirectly own hardware and provide services, provided that the sharing entity exercises control over it.
- Ancillary support services
- Support such as technical infrastructure, procurement advice, procedure management, invoicing, and administration under Article 37(4).