On Wednesday 21 January, the European Commission presented its Digital Networks Act (DNA), which was initially intended to reshape the European telecommunications sector. The final text, however, abandons one of its most sensitive pillars: the introduction of “network fees” to be paid by the major online platforms.
When the ‘White Paper’ on telecommunications was presented in February 2024, the Commissioner at the time, Thierry Breton, predicted a major initiative in favour of the sector (see EUROPE 13355/8), with the aim of rebalancing relations between telecommunications operators and other digital sector players, particularly in cloud computing and big tech.
The final text, presented on Wednesday, dilutes these ambitions and looks more like a reorganised status quo than a real overhaul of the sector. Several key objectives – notably “network fees” and the creation of pan-European operators – have been scaled back.
The only thing that has remained is the harmonisation of procedures for allocating radio spectrum, with a strengthened and centralised role for the Commission, with the danger that the Member States will unravel this competence during discussions in the Council, as they wish to retain maximum power over this prerogative.
Voluntary conciliation mechanism. Gone are the “network fees”, otherwise known as “fair contribution” by their most ardent supporters. This idea of partial funding of network infrastructures by major online services (such as YouTube, Netflix and others), in view of the enormous traffic generated by these companies, does not feature in the proposed text.
In fact, this idea had already been buried several months ago, in a geopolitical gesture, during negotiations on the framework trade agreement between the EU and the United States. Its paragraph 17 states that “the European Union confirms that it will not introduce or maintain network usage charges”.
Instead, Articles 191 to 193 detail the basis for “ecosystem cooperation” and how operators and service providers can optimise the use of networks, or contribute to their funding, on a voluntary basis.
The Commission is relying on guidelines, which BEREC is due to publish one year after the implementation of the regulation. Companies in the sector will then be able to ask their competent national authority for “voluntary conciliation” on the issues raised.
In the event of disagreement between the parties, the national authority will itself be able to make “options for effective cooperation”. There is nothing, however, about the possibility of one of the two parties refusing to come to the discussion table.
“We based our work on consultations with stakeholders. Most respondents are opposed to very strict rules and fees, and believe that bilateral cooperation generally works well”, defended Henna Virkkunen, the Commissioner for Technological Sovereignty.
For many European operators, this backtracking on fees is a damper that removes all weight from the text and all responsibility from the digital giants.
Radio spectrum harmonisation and European competitiveness. The biggest thrust of this text is in the area of spectrum. In a new “Union radio spectrum single market procedure”, the Commission wants to give itself the power to veto national spectrum allocation plans if it has reservations about their impact. This decision is likely to cause a stir among the Member States, which are attached to their exclusive competence.
The text introduces other, less politically sensitive objectives, such as accelerated migration from copper to fibre, widespread 5G and 6G coverage, secure submarine cables and the introduction of a single European passport.
This draft regulation brings together in a single text the 2018 European Electronic Communications Code, the regulation establishing the Body of European Regulators for Electronic Communications (BEREC) and several articles from different legislative texts on online users’ rights, the open internet and net neutrality.
Despite its size and density, the DNA does not appear to herald a major upheaval in the European telecoms sector. Some stakeholders regret the vague language, the increased regulatory complexity and, above all, the missed opportunity to tackle the structural reforms needed to stimulate investment and innovation.
See the text: https://aeur.eu/f/kc5 (Original version in French by Isalia Stieffatre)