Alphabet's Google, Meta Platforms, Netflix, Microsoft and Amazon will avoid strict regulations under Europe's upcoming Digital Networks Act, according to sources with direct knowledge of the matter. The tech giants face only voluntary cooperation requirements despite telecom industry calls for binding rules.
EU tech chief Henna Virkkunen presents the DNA on January 20, aiming to boost Europe's competitiveness and telecom infrastructure investment. The framework asks tech companies to participate in voluntary discussions moderated by BEREC, the EU telecoms regulators' group.
"There will be no new obligations. It will be a best practices regime," one source told Reuters. The approach contrasts with binding requirements telecom providers must follow, marking a significant concession to major US technology firms.
The Digital Networks Act establishes spectrum licensing guidelines across 27 EU countries, including duration, sale conditions and pricing methodology for auctions that generate billions for governments. This harmonization reduces regulatory burdens but may face resistance from national regulators viewing it as a power grab.
Fibre infrastructure rollout receives Commission guidance under the DNA, targeting digital goals and competition with the United States and China. Governments can extend the 2030 deadline for replacing copper networks with fibre if they demonstrate readiness challenges.
The voluntary framework follows years of EU tech regulation criticism from the United States, which claims European rules disproportionately target American companies. The EU has consistently rejected these allegations while pursuing digital sovereignty objectives.
Tech companies gain regulatory certainty through the cooperative approach, avoiding the compliance costs associated with binding telecom-style regulations. Telecom operators, however, face continued infrastructure investment requirements without corresponding contributions from major content platforms.
The DNA represents Europe's latest attempt to balance innovation support with infrastructure development, recognizing tech platform dominance while maintaining investment incentives. Final details require negotiation between the Commission, EU countries and European Parliament before becoming law.
Implementation timing remains uncertain as legislative processes typically span months. The voluntary cooperation model could set precedent for future digital regulation, emphasizing industry-led solutions over prescriptive requirements.
