EU Digital Regulations Overhaul Exempts Major Tech Companies

Overview of the Digital Networks Act

By Foo Yun Chee

Impact on Major Tech Companies

BRUSSELS, Jan 8 (Reuters) - Alphabet's Google, Meta Platforms, Netflix, Microsoft and Amazon will not face heavy-handed regulations in Europe's digital rule overhaul despite calls from telecoms companies, people with direct knowledge of the matter said on Thursday.

Regulatory Framework for Telecoms

A slew of new tech rules adopted in recent years by the European Commission sparked criticism from the United States which says it targets U.S. tech giants. The EU has categorically rejected such claims.

Future of Fibre Infrastructure

EU tech chief Henna Virkkunen will present the rule revamp known as the Digital Networks Act, which aims to boost Europe's competitiveness and investments in telecoms infrastructure, on January 20. 

She will need to thrash out the details with EU countries and the European Parliament in the coming months before the DNA becomes law.

The tech giants will be subject only to a voluntary framework rather than binding rules to which telecoms providers have to comply, the people say.

"They will be asked to cooperate and discuss voluntarily, moderated by EU telecoms regulators' group BEREC. There will be no new obligations. It will be a best practices regime," one of the people said.

Under the draft DNA, the Commission will also set out the duration of spectrum licensing, the conditions for the sale of spectrum and a pricing methodology to guide national regulators during auctions of spectrum which can yield billions of euros for governments, the people said.

While the goal is to harmonise the allocation of spectrum across the 27-country European Union and reduce the regulatory burden for telecoms companies, some national regulators may see it as a power grab.

Under the proposed revamp, the Commission will provide guidance to national regulators on the rollout of fibre infrastructure, key to achieving its digital goals and catching up with the United States and China.

The DNA will 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 people said.

(Reporting by Foo Yun Chee in BrusselsEditing by Nick Zieminski and Matthew Lewis)