A Reuters report suggests that it is and this could finally extinguish any hopes of the so-called fair deal for Europe’s telcos
According to Reuters, Alphabet’s Google, Amazon, Meta Platforms, Microsoft and Netflix will not be obliged to comply with the European Union’s proposed Digital Networks Act (DNA). Even before this news broke, the DNA was expected “to be less ambitious than the complete overhaul of digital rules proposed in the 2024“.
The proposed new framework that will be encapsulated in the DNA has been heavily criticised by the US which says it targets American companies. The EU denies this. Now, according to Reuters, it seems the US’ Big Techcos will be faced with a voluntary framework of best practices, overseen by the EU telecoms regulator group, BEREC, rather than legal obligations under the DNA.
BEREC has previously been criticised for its opaque processes and use of Big Tech’s technology, among other things.
Henna Virkkunen, the Commissioner and EVP Tech-sovereignty, Security and Democracy, is due to present the revised digital framework on 20 January. She needs to ssecure agreement over the details with EU Member States and the European Parliament (pictured) in the coming months before the DNA becomes law.
It is intended to boost Europe’s competitiveness and investment in telecoms infrastructure.
This apparent lack of resolve in the face of US objections could be a serious blow to European telcos long, dearly held hopes of a ‘fair share’ mechanism. Mario Draghi, laid out a blueprint for how it could be implemented in a paper published in September 2024, The future of European competitiveness.
The Commission also plans to harmonise allocation of spectrum across the 27 states in the EU in the draft DNA, setting out the duration of spectrum licensing, conditions for the sale of spectrum and a pricing methodology to guide national regulators during spectrum auctions.
This could be resisted by some members. In the past, some governments have treated spectrum auctions like a cash cow – for example, 5G spectrum licences in Germany and Italy both raised more than €6 billion for government coffers– effectively diverting money that otherwise could have been invested in the infrastructure.
The Commission will also provide guidance to national regulators on the rollout of fibre infrastructure, which it sees as essential to achieving its digital goals and catching up with the US and China.
The DNA is to also allow governments to extend the 2030 deadline for replacing copper networks with fibre infrastructure if they can show that they are not ready, the Reuters report said.
