Summary The official title of the proposal known as CADA is the "Proposal for a Regulation of the European Parliament and of the Council establishing a framework of measures for strengthening Europe's cloud and AI ecosystem (Cloud and AI Development Act)." Its Commission document number is COM(2026) 502 final, and its legislative procedure code is 2026/0138 (COD). The European Commission tabled it on 3 June 2026. It is a proposal and is not yet in force.

Detail

The Cloud and AI Development Act (CADA) is a legislative proposal currently in the ordinary legislative procedure; as of its proposal date it has not entered into force. Its full official title is the "Proposal for a Regulation of the European Parliament and of the Council establishing a framework of measures for strengthening Europe's cloud and AI ecosystem (Cloud and AI Development Act)."

When citing the document, use its Commission reference: COM(2026) 502 final. The procedure code 2026/0138 (COD) indicates it is subject to the ordinary legislative procedure (co-decision) between the European Parliament and the Council. The Commission presented the proposal on 3 June 2026 (the document is dated Brussels, 3.6.2026). The proposal is accompanied by SEC(2026) 502 final and the Staff Working Documents SWD(2026) 502 final and SWD(2026) 503 final.

Article 1 ("Subject matter") confirms the scope: the Regulation would establish a framework for strengthening the cloud and AI ecosystem at Union level, in particular through establishing the Cloud Leadership Initiative and the AI Leadership Initiative; setting a framework for the accelerated deployment of data centres; enabling a sovereign cloud and AI offer to safeguard the Union's public order; reducing dependencies on critical technologies; and fostering the adoption of cloud computing services across the public sector.

Because CADA is a proposal, its text, numbering and requirements may change during negotiations between the Parliament and the Council. Counsel should track the evolution of COM(2026) 502 final rather than treat it as settled law. Only the version eventually published in the Official Journal of the European Union after co-decision would become binding.

What this means for you

For in-house counsel and compliance officers, citing CADA precisely matters for several reasons:

  1. Regulatory tracking: Using the exact identifier COM(2026) 502 final (and procedure 2026/0138 COD) ensures you track the correct file alongside other digital initiatives such as the AI Act or the Data Act.
  2. Instrument type: CADA is proposed as a Regulation, not a Directive. If adopted in its current form, it would be directly applicable in all Member States without national transposition, creating uniform obligations across the EU.
  3. Timeline planning: The proposal date of 3 June 2026 starts the legislative clock. As proposed, the Regulation would apply one year after entry into force (Article 48), but the final dates would be fixed only in the adopted text.
  4. Vendor management: Article 1 highlights safeguarding public order and reducing dependencies. It is reasonable to begin reviewing current cloud contracts for third-country dependencies in anticipation of the proposed sovereignty framework, while recognising that the obligations are not yet in force.

Common misconceptions

  • "CADA is already law." Incorrect. CADA is a proposal (COM(2026) 502 final). It must complete the ordinary legislative procedure and be published in the Official Journal before becoming binding.
  • "CADA is a Directive." Incorrect. The official title is a "Proposal for a Regulation." A Regulation is directly applicable in all Member States, whereas a Directive requires national transposition.
  • "COM(2026) 502 is the final law." The number COM(2026) 502 final identifies the Commission's proposal. The final adopted act would carry a different number (for example, Regulation (EU) 20XX/XXXX). Always check whether you are reading the proposal or an adopted text.

Official sources

Related

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