The European Parliament has voted to advance the Digital Sovereignty Act, a landmark regulation that would require major tech platforms to store European user data within EU borders and submit algorithms to regulatory review. The vote signals a major escalation in the EU’s approach to technology governance.
The act passed its first reading with 412 votes in favour, 198 against, and 45 abstentions. It now moves to trilogue negotiations between Parliament, Council, and Commission, where significant amendments are expected.
Tech industry groups have criticised the act as ‘unworkable,’ arguing that data localisation requirements would increase costs and degrade service quality for European users. Meanwhile, digital rights organisations have praised its transparency provisions as essential for democratic accountability.
The regulation is expected to take effect in 2028 if approved in its current form, giving platforms a two-year transition period. Companies with more than 45 million EU users would be subject to the full requirements, while smaller platforms face lighter obligations.
The vote represents the EU’s most ambitious tech regulation since the Digital Markets Act and could set a global precedent for platform governance. Several countries outside Europe, including Brazil and India, are reportedly studying the legislation as a model for their own regulatory efforts.