Key Points
- The EU’s upcoming Digital Networks Act will not impose heavy regulations on U.S. tech giants.
- Google, Meta, Netflix, Microsoft, and Amazon will be subject to a “voluntary framework” instead of binding rules.
- European telecom companies have been pushing for a “fair share” contribution from Big Tech to fund network infrastructure.
- The new rules will also harmonize mobile spectrum allocation across the EU.
The European Union is preparing to unveil a major overhaul of its digital rules, but it appears the biggest U.S. tech companies will get off easy. According to sources, Google, Meta, Netflix, Microsoft, and Amazon will not be facing the heavy-handed regulations that European telecom companies have been calling for.
The new rules, known as the Digital Networks Act, are scheduled for presentation on January 20. The goal is to boost Europe’s competitiveness and encourage investment in its telecom infrastructure.
European telecom providers have long argued that Big Tech should contribute to the cost of the networks they use to deliver their services, a so-called “fair share” contribution.
However, it seems the EU has decided against this. Instead of binding rules, the tech giants will be asked to participate in a “voluntary framework.” They will be asked to “cooperate and discuss” with EU regulators, but there will be no new legal obligations. This is a big win for the tech companies and a major blow to the telecom industry.
The U.S. government will also be pleased with this outcome. It has been critical of the EU’s recent tech regulations, arguing that they unfairly target American companies.
The Digital Networks Act will also include new rules governing how countries allocate and price radio spectrum used for mobile networks. The goal is to create a more harmonized system across the 27-country bloc.
The new rules will also guide the rollout of fiber optic infrastructure, a key part of the EU’s plan to catch up with the U.S. and China in the digital race.
