Major American technology corporations, including Google, Meta, Netflix, Microsoft, and Amazon, could soon receive a regulatory reprieve in Europe. According to a Reuters report, the European Commission is set to unveil a significant new proposal aimed at reshaping the digital landscape.
The Digital Networks Act Proposal
The proposal, named the Digital Networks Act, is scheduled for presentation on January 20. Spearheaded by EU tech chief Henna Virkkunen, the plan's core objectives are to bolster Europe's competitive edge and stimulate greater investment in telecom infrastructure. This move comes amidst a backdrop of increasing friction over previous EU tech regulations.
In a notable shift, sources familiar with the draft indicate that the framework for large tech platforms will be voluntary rather than binding. This stands in stark contrast to the mandatory obligations that will continue to apply to traditional telecom operators within the bloc. The European Union has enacted several stringent technology laws in recent years, such as the Digital Markets Act and Digital Services Act, which have faced criticism from US officials who argue they disproportionately target American firms—a claim the EU has consistently denied.
A Voluntary "Best Practices" Regime
What does this voluntary framework entail for companies? Sources reveal that tech giants will be encouraged to cooperate and share best practices through discussions moderated by the EU's telecom regulators' group, BEREC (Body of European Regulators for Electronic Communications). Crucially, this approach will not impose new legal requirements on the companies.
"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 source told Reuters. This represents a potential de-escalation in the regulatory pressure on US tech firms in Europe, focusing on collaboration over compulsion.
Spectrum Rules and Network Rollout
Beyond the voluntary code for big tech, the proposal includes other key measures. It seeks to align rules on spectrum licensing across the European Union's member states. This harmonisation would cover critical aspects like licence duration, conditions of sale, and the pricing methods used in spectrum auctions, aiming to create a more unified digital single market.
Furthermore, the plan outlines guidance for the rollout of fibre networks and provides flexibility by allowing countries to delay the 2030 target for connectivity goals if necessary. This acknowledges the practical challenges nations may face in achieving stringent digital deadlines.
The upcoming Digital Networks Act proposal signals a potential new chapter in EU-US tech relations, emphasising partnership and shared best practices for infrastructure development, while maintaining stricter rules for the telecom sector that owns and operates the physical networks.
