UK to regulate cloud service providers Microsoft, Google and others to protect financial stability

The move aims to strengthen financial firms by reducing cyber attack and technology outage risks

Britain has designated cloud service providers Microsoft , ​Google , Amazon  and Oracle  as critical third-party suppliers ‌to its financial sector, bringing them under direct regulatory oversight.

The move is aimed at strengthening the resilience of financial firms by ​reducing the risk of widespread disruption from cyber ​attacks or technology outages.

"As banks, insurers and financial ⁠market infrastructures become increasingly reliant on cloud services, ​disruption at a major supplier could affect multiple firms at ​the same time, potentially impacting services customers depend on," the government said in a statement on Friday.

The government designated Microsoft Ireland Operations ​Ltd, Google Cloud EMEA Ltd, Amazon Web Services ​EMEA SARL, and Oracle Corporation UK Ltd as critical third parties, effective ‌July ⁠13.

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The firms will be supervised jointly by the Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority. They will be required to undergo resilience ​testing, conduct regular ​self-assessments and ⁠report major incidents.

Britain's approach contrasts with that of the European Union, which in November designated ​19 technology and services firms under a similar ​framework.

A ⁠Google Cloud spokesperson said: "With effective implementation and meaningful industry engagement, this new Critical Third Party framework can enhance the ⁠long-term resilience ​of the UK's financial ecosystem ​and increase understanding, transparency, and trust between all parties."