Alphabet’s Google, Meta Platforms, Netflix, Microsoft and Amazon are unlikely to face strict new regulatory requirements under a forthcoming overhaul of Europe’s digital rules, despite pressure from telecoms companies, according to people with direct knowledge of the matter, per Reuters.
The planned changes form part of a broader rethink of the European Union’s approach to digital and telecoms regulation after a wave of tech legislation in recent years drew criticism from the United States. Washington has argued that the EU’s rules unfairly target U.S. technology giants, a claim Brussels has firmly denied, according to Reuters.
The revamp, known as the Digital Networks Act (DNA), is set to be presented on January 20 by EU tech chief Henna Virkkunen. The initiative is designed to strengthen Europe’s competitiveness and stimulate investment in telecoms infrastructure. The European Commission declined to comment on the draft proposals, per Reuters.
People familiar with the plans said the large technology companies would be covered by a voluntary cooperation framework rather than binding obligations, unlike telecoms operators, which would continue to face mandatory requirements. Under this approach, the companies would be encouraged to engage in discussions overseen by the Body of European Regulators for Electronic Communications (BEREC). “They will be asked to cooperate and discuss voluntarily, moderated by EU telecoms regulators’ group BEREC. There will be no new obligations. It will be a best practices regime,” one of the people said, according to Reuters.
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Before the Digital Networks Act can become law, its details will need to be negotiated with EU member states and the European Parliament, a process expected to take several months, per Reuters.
The draft legislation is also expected to address how radio spectrum is managed across the bloc. According to Reuters, the Commission plans to outline the length of spectrum licences, conditions for selling spectrum and a pricing methodology to guide national regulators during spectrum auctions, which can generate billions of euros for governments. While the aim is to harmonise spectrum allocation across the EU’s 27 countries and ease regulatory burdens on telecoms firms, some national regulators may view the proposals as an encroachment on their authority.
In addition, the Commission intends to issue guidance to national regulators on the rollout of fibre networks, which are seen as essential for meeting Europe’s digital ambitions and narrowing the gap with the United States and China, per Reuters.
The proposed overhaul would also give governments flexibility on infrastructure timelines. According to Reuters, countries could be allowed to extend the 2030 deadline for replacing legacy copper networks with fibre if they can demonstrate that they are not yet ready to complete the transition.
Source: Reuters
