Summary Under the proposed Cloud and AI Development Act (CADA), an "open source licence" is not defined from scratch. As proposed in Article 2(25), it means an "open source licence as defined in Article 2, point (12), of Regulation (EU) 2024/903" β€” the Interoperable Europe Act. In practice that points to licences granting the freedom to use, study, modify, and redistribute software. For CTOs and architects, the anchor matters because CADA's open-source provisions (Articles 41-44) would push Union entities and public sector bodies to prefer components released under such licences, shaping procurement and software strategy across the EU.

Detail

CADA is a European Commission proposal aimed at strengthening Europe's cloud and AI ecosystem, reducing dependencies on non-European technologies, and reinforcing technological autonomy. Promoting open-source software is one of its levers. To keep the law consistent with the wider EU digital acquis, CADA does not write its own definition of open source β€” it cross-references an existing one.

The legal definition: Article 2(25)

The definition of "open source licence" under CADA sits in Article 2(25) of the proposal, which states:

"β€˜open source licence’ means open source licence as defined in Article 2, point (12), of Regulation (EU) 2024/903."

Regulation (EU) 2024/903 is the Interoperable Europe Act. By pointing to it, CADA would adopt a consistent, Union-wide meaning rather than a bespoke "CADA licence." Broadly, an open source licence in that sense is one that lets software be freely used, studied, modified, and redistributed. For a CTO assessing exposure, the practical takeaway is that there is no special "CADA-compliant" licence list β€” you look to the established meaning under the Interoperable Europe Act. Common licences such as MIT, Apache 2.0, and the GPL family generally meet those core criteria of free use, modification, and redistribution.

Why the definition matters

The definition is not merely semantic; it underpins specific measures in CADA's open-source chapter (Articles 41-44, which the explanatory memorandum places in Title IV on autonomy and adoption).

  1. Encouraging open source solutions (Article 41): As proposed, Article 41 would require Union entities and public sector bodies to encourage and facilitate their use of open-source solutions over proprietary ones when building or operating their cloud and AI stack, taking into account criteria such as functionalities, security, and total cost.

  2. Sharing and reuse of software (Article 42): As proposed, where Union entities or public sector bodies hold rights to software and make it available for reuse, Article 42 would set requirements for that sharing and reuse.

  3. The EU Open Source Solutions Catalogue (Article 43): As proposed, the Commission would provide and maintain an Open Source Solutions Catalogue. Under Article 43, the catalogue would be hosted on the Interoperable Europe portal referred to in Article 8 of Regulation (EU) 2024/903.

  4. Network of Open Source Programme Offices (Article 44): As proposed, Article 44 would establish a network of Member States' Open Source Programme Offices (OSPOs) to coordinate, exchange best practices, and address licensing, security, maintenance, and procurement challenges.

Strategic implications for the cloud and AI ecosystem

The open-source definition is tightly coupled to CADA's broader goal of reducing dependency on third-country providers. In Title II, open source also features as an operational objective of the Cloud and AI Leadership Initiatives: as proposed, Article 4(2)(d) would foster the creation of open-source software foundations supporting open-source components, and Article 4(2)(e) would establish a catalogue of European open cloud computing solutions. The thrust is a resilient, transparent technological stack that reduces vendor lock-in β€” not just a licensing formality.

What this means for you

For CTOs, architects, and SMEs in the EU cloud and AI market, the definition has practical consequences:

  • Standardise your licence choices: Release the components you build or integrate under licences that clearly meet the Interoperable Europe Act's definition. Ambiguous or restrictive licences may not benefit from the open-source preferences CADA would create.
  • Prepare for public sector demand: As public sector bodies would be encouraged toward open source, expect more demand for well-documented, secure open-source software β€” and potential listing in the EU Open Source Solutions Catalogue.
  • Engage with OSPOs: The proposed OSPO network (Article 44) would be a new channel for licensing, security, and maintenance best practices, and for connecting with public sector bodies.
  • Audit your supply chain: With CADA's emphasis on autonomy and security, the provenance and licensing of your components will be scrutinised. Clear licences and transparent histories would be an advantage in serving Union entities and public sector bodies.
  • Watch secondary measures: The definition is fixed in Article 2(25), but operational detail (catalogue criteria, OSPO governance) would be developed through implementation. Track those developments.

Common misconceptions

  • "CADA creates a new type of open-source licence." It does not. Article 2(25) references the Interoperable Europe Act. There is no "CADA Licence" β€” keep using established open-source licences that meet the free use, modify, and share criteria.
  • "All free-to-use software is automatically open source under CADA." Not necessarily. The definition turns on the licence granting the relevant freedoms. Software that is free to use but restricts modification or redistribution would not qualify, and so would not benefit from the open-source measures in Articles 41-44.
  • "Open source means no security or maintenance responsibility." A common error. CADA's emphasis on autonomy and security means public bodies will still expect strong maintenance, vulnerability handling, and support for the open-source components they adopt.

Related

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