Sources: Big Tech Avoids Strict Rules in EU Digital Overhaul

• Tech giants will face only voluntary best practices moderated by EU telecom regulators (BEREC), while traditional telecom providers must comply with binding rules
• The Digital Networks Act will harmonize spectrum licensing duration, sales conditions, and pricing methodology across the 27-country EU to reduce regulatory burden
• Governments can extend the 2030 deadline for replacing copper networks with fiber infrastructure if they demonstrate they are not ready to meet the target

EU Digital Overhaul Spares Big Tech from Strict Regulations

Major U.S. technology companies including Google (Alphabet), Meta Platforms, Netflix, Microsoft, and Amazon will avoid heavy-handed regulations under Europe's upcoming Digital Networks Act (DNA), according to sources familiar with the matter. The tech giants will only face voluntary compliance frameworks rather than the binding rules that will apply to telecommunications providers.

Key Details:

EU tech chief Henna Virkkunen will present the Digital Networks Act on January 20, which aims to enhance European competitiveness and boost telecoms infrastructure investment. The legislation must be negotiated with EU member states and the European Parliament before becoming law.

Instead of mandatory obligations, Big Tech companies will participate in a "best practices regime" where they cooperate voluntarily with discussions moderated by BEREC, the EU telecoms regulators' group. This approach marks a departure from telecoms companies' calls for stricter tech regulation.

Additional DNA Provisions:

• The Commission will establish standardized rules for spectrum licensing duration, sale conditions, and pricing methodology across the 27-member EU
• National governments may extend the 2030 deadline for replacing copper networks with fiber infrastructure if they demonstrate unreadiness
• The harmonization efforts aim to reduce regulatory burden on telecoms companies, though some national regulators may view this as centralized power expansion

Market Context:

The decision follows criticism from the United States that recent EU tech regulations unfairly target American companies—claims the EU has firmly rejected. The lighter touch on Big Tech may ease transatlantic tensions while still advancing Europe's digital infrastructure goals.