In a significant development for global technology policy, major US tech giants including Google, Meta, Netflix, Microsoft, and Amazon are set to avoid stringent, mandatory regulations under Europe's upcoming digital rule overhaul. This decision comes despite persistent lobbying from European telecom operators who sought stricter contributions from these content and platform providers for network infrastructure costs.
Voluntary Cooperation Over Binding Rules
According to sources with direct knowledge of the matter, these technology behemoths will be subject to a voluntary framework rather than the binding rules that telecom service providers must follow. The new regulatory structure, known as the Digital Networks Act (DNA), will be formally presented by EU tech chief Henna Virkkunen on January 20.
The core of the approach will involve asking the big tech firms to cooperate and engage in discussions voluntarily. This process will be moderated by the Body of European Regulators for Electronic Communications (BEREC). "There will be no new obligations. It will be a best practices regime," one source confirmed, highlighting the EU's preference for a collaborative model over punitive mandates.
Key Provisions of the Digital Networks Act
The draft DNA, aimed at enhancing Europe's competitiveness and spurring investment in telecom infrastructure, contains several crucial elements beyond the big tech framework. A major focus is on harmonising the allocation of the valuable radio spectrum across the 27-member European Union.
The European Commission will outline:
- The duration of spectrum licenses.
- Conditions for the sale of spectrum rights.
- A pricing methodology to guide national regulators during spectrum auctions.
These auctions often generate billions of euros for government treasuries. While the goal is to reduce the regulatory burden on telecom companies, some national regulators may perceive the centralised guidelines as a reduction of their own powers.
Flexibility and Implementation Timeline
The proposed rules also offer flexibility for member states regarding network upgrades. Governments will be allowed to extend the 2030 deadline for replacing legacy copper networks with modern fibre optic infrastructure, provided they can demonstrate they are not ready to meet the original target.
Following the presentation on January 20, the Commission will need to negotiate the final details of the DNA with EU member countries and the European Parliament in the coming months before it can be enacted into law. This development follows a series of recent EU tech regulations that have drawn criticism from the United States for allegedly targeting American firms, a claim the EU has consistently denied.
