EU revises telecom rules: ‘voluntary’ framework for tech giants

The European Commission’s revised Digital Networks Act assumes voluntary cooperation from American tech giants, instead of imposing binding rules on them.

The European Commission will most likely present a bill for the Digital Networks Act on January 20. The bill aims to harmonize the legal playing field for the telecom sector and strengthen the position of the European market. Contrary to what local providers hope, the law will not be too hard on major American players.

Voluntary framework

According to sources at Reuters, the Digital Network Act is based on a ‘voluntary’ framework for the tech giants rather than binding rules. Under the supervision of the European group of telecom regulators BEREC, companies will be encouraged to participate in meetings and determine and comply with ‘best practices’. The bill does not include any additional obligations. The European Commission is not responding to Reuters’ reports.

On January 20, Commissioner Henna Virkunnen will explain the bill. It is then up to the 27 member states and the European Parliament to approve the Digital Networking Act. Several member states, including France, Germany and Italy, have not yet expressed support. The member states prefer to regulate the telecommunications market at a national level. Local players would also likely prefer stricter rules for American companies.

Geopolitical pressure

The European Commission’s position on the Digital Networks Act is representative of the difficult balancing act that the EU has to make. US President Donald Trump views any form of European legislation that could affect American companies as a form of provocation.

Now that Washington is openly threatening military excursions on the territory of one of the 27 EU member states, the situation is tense. Regulation can be a stick that the European Union has to strike back, or just add fuel to the fire. The European Commission seems to be wavering between tightening or loosening the legal belt.

Fiber delay

The Digital Networks Act also includes proposals on spectrum auctions and fiber rollout in Europe. The duration of licenses and the conditions and pricing of auctions could be harmonized at European level. The law also provides for a possible postponement of the set deadline to replace all copper networks with fiber by 2030 if local authorities can demonstrate that this is not feasible.