CADA Governance

Summary As proposed in the Cloud and AI Development Act (CADA), the comitology committee under Article 46 and the Steering Committee under Article 38 serve entirely distinct functions within the regulation's governance architecture. The comitology committee is a regulatory body operating under Regulation (EU) No 182/2011, assisting the Commission in adopting binding implementing acts for technical standards (e.g., audit rules, fee methodologies). In contrast, the Steering Committee is an operational governance body composed of the Commission and representatives of participating Member States, tasked with strategic oversight of joint procurement activities and the EuroCloud Federation. Legal teams must distinguish between these bodies to determine whether a rule is being set via EU administrative procedure (comitology) or negotiated through a public procurement agreement (Steering Committee).

Detail

The Cloud and AI Development Act (CADA) establishes two separate governance mechanisms that are frequently conflated due to their overlapping involvement of the European Commission and Member States. However, their legal bases, procedural rules, and outputs differ fundamentally. Understanding this distinction is critical for compliance officers tracking regulatory changes versus those managing procurement obligations.

The Comitology Committee (Article 46)

Article 46 of the CADA proposal establishes a committee to assist the European Commission in exercising its implementing powers. This committee operates strictly within the standard EU comitology framework, specifically Regulation (EU) No 182/2011.

• Legal Basis and Function: The primary role of this committee is to oversee the Commission's exercise of implementing powers. Under CADA, the Commission is empowered to adopt implementing acts on various technical and procedural matters. These include:
  • Detailed rules for the performance of audits of cloud computing services (referenced in Article 20(9)).
  • Procedures for participating in the EuroCloud Federation (referenced in Article 34(4)).
  • Technical, operational, and organisational measures for the EuroCloud Federation (referenced in Article 35(6)).
  • Rules for determining fees for the EuroCloud Federation and joint procurement activities (referenced in Article 36(4) and Article 40(5)).
  • Methodologies and templates for risk assessments by Member States (referenced in Article 29(3)).
• Procedure: Article 46(2) explicitly states that where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 applies. This is the "examination procedure." In this procedure, the Commission submits a draft implementing act to the committee.
  • If the committee delivers a positive opinion, the Commission adopts the act.
  • If it delivers a negative opinion, the Commission cannot adopt the act (unless it refers the matter to the Appeal Committee).
  • If no opinion is delivered, the act is not adopted, unless the Commission decides to adopt it after a further period.
• Membership: While CADA does not explicitly list the members of the comitology committee in Article 46, standard practice under Regulation (EU) No 182/2011 dictates that the committee consists of representatives of the Member States, chaired by a representative of the Commission. These are typically senior officials from national ministries relevant to the subject matter (e.g., digital affairs, justice, or interior ministries). The committee represents the collective view of the EU Member States on technical implementation.
• Output: The output is implementing acts. These are legal instruments that have binding force across the entire EU. They create uniform conditions for the implementation of the Regulation, ensuring that technical standards (like audit criteria or fee calculation methods) are applied consistently in all Member States.

The EuroCloud Steering Committee (Article 38)

The "Steering Committee" referenced in the context of the EuroCloud Federation and joint procurement is established under Article 38 of CADA. It is crucial to note that while the EuroCloud Federation is established in Article 34, the Steering Committee specifically governs the common procurement framework described in Chapter IV of Title IV.

• Legal Basis and Function: Article 38(4) establishes the Steering Committee to provide strategic oversight of procurement activities carried out by the Commission on behalf of Member States and Union entities. Its role is operational and strategic, not legislative.
  • It proposes the strategic direction of the procurement agenda for a fixed period.
  • It approves the strategic direction of each procurement procedure before it is launched by the Commission.
  • It ensures compliance with the framework established by CADA.
  • It sets transparent and non-discriminatory conditions for contracting authorities to accede to the procurement agreement.
• Procedure: The Steering Committee operates under the rules of procedure it adopts, following a proposal from the Commission (Article 38(11)). It does not follow the formal examination procedure of Regulation (EU) No 182/2011. Instead, it functions as a governance body for a specific contractual and operational framework. Its decisions are internal to the procurement agreement and the participating entities.
• Membership: Article 38(4) explicitly defines the membership:
  • The European Commission.
  • One representative from each participating Member State at the national level.
  • The Steering Committee may appoint additional representatives of other Union entities, contracting authorities of Member States, and partner organisations selected by the Commission.
  • Crucially, membership is tied to participation in the procurement agreement; non-participating Member States do not have a seat at this table.
• Output: The output is strategic decisions, approvals of procurement procedures, and rules of procedure. It does not adopt EU-wide implementing acts. Its decisions are binding on the participating entities within the context of the procurement agreement but do not have the status of secondary EU legislation applicable to the general public or non-participating states.

Key Differences Summary

What this means for you

For in-house counsel and compliance officers, distinguishing between these two bodies is essential for three reasons:

1. Tracking Regulatory Changes: You must monitor the comitology committee's outputs (via the EU Register of Documents and the Official Journal) to track changes to technical requirements. For example, the audit criteria for Union assurance levels 2-4 (detailed in Annex II) may be supplemented by delegated acts, but the procedural rules for those audits are subject to implementing acts adopted via the comitology committee under Article 20(9). If the comitology committee adopts new auditing methodologies, your compliance framework must adapt immediately, as these become binding EU law.
2. Procurement Strategy: If your organization is a cloud computing service provider targeting the public sector, you need to watch the Steering Committee's activities. This body determines the strategic direction of procurement procedures (Article 38(5)). While it does not set the technical standards, it influences the market demand by deciding which cloud services are procured jointly. Understanding its strategic agenda can help you anticipate tender opportunities and align your offerings with the Commission's procurement priorities.
3. Fee Structures: Both bodies influence costs, but in different ways. The comitology committee, under Article 36(4) and Article 40(5), adopts implementing acts laying down detailed rules for determining fees for the EuroCloud Federation and joint procurement activities. The Steering Committee, however, oversees the overall procurement agenda and sets the conditions for accession. Compliance officers must track the implementing acts adopted by the Commission (controlled by the comitology committee) to know the exact fee calculations and payment conditions they will face as participating entities or service providers.

Common misconceptions

• Misconception 1: The Steering Committee adopts EU law.
  • Correction: No. The Steering Committee (Article 38) only provides strategic oversight and approves procurement procedures. It does not have the power to adopt implementing acts. Only the Commission, assisted by the comitology committee under Article 46, can adopt binding EU implementing acts.
• Misconception 2: The comitology committee manages the EuroCloud Federation.
  • Correction: The comitology committee does not manage the EuroCloud Federation. It only approves the technical implementing acts related to it, such as the procedures for participation (Article 34(4)) and the fee structures (Article 36(4)). The operational governance of the procurement activities linked to the federation is handled by the Steering Committee under Article 38.
• Misconception 3: Membership is identical.
  • Correction: While both involve Member State representatives, the Steering Committee explicitly includes one representative from each participating Member State and may include appointed representatives from Union entities and partner organisations (Article 38(4)). The comitology committee follows the standard structure of Regulation (EU) No 182/2011, which typically involves broader national ministry representation from all Member States but does not include the specific operational appointees found in the Steering Committee.

Related

• CADA Governance: The Steering Committee vs. Comitology and the EuroCloud Federation
• Who sits on the CADA comitology committee?
• What role does the European Economic and Social Committee play in CADA governance?
• What does the CADA committee procedure (comitology) involve?
• Where in CADA are the final provisions on governance found?

This is general information about a draft EU regulation, not legal advice.