European telecoms operators hoping to systemically force US tech giants to co-finance network infrastructure may be feeling disappointed. Instead of the announced revolution and hard regulation in the ‘Fair Share’ discussion, the European Commission intends to bet on diplomacy.
According to reports on the draft Digital Networks Act to be presented by Commissioner Henna Virkkunen on 20 January, Brussels is moving away from imposing binding financial obligations on the largest generators of network traffic. Instead, the document envisages the introduction of a framework for voluntary cooperation under the supervision of the Body of European Regulators for Electronic Communications (BEREC). Giants such as Google and Meta would only be encouraged to attend meetings and define ‘best practices’, effectively dismissing the vision of direct cash transfers to European telcos.
The European Commission’s change of course is a clear sign of geopolitical pragmatism. Faced with the new administration of Donald Trump, who sees every attempt to tax US corporations as an economic provocation, Brussels is opting for a strategy of conflict avoidance. In a situation of strained transatlantic relations, where Washington is reacting more and more aggressively to attempts to regulate its digital champions, the Digital Network Act becomes part of a delicate diplomatic game. The EU seems to be calculating that escalating trade tensions is too risky at the moment, even at the expense of the interests of local internet providers.
However, the bill is not only an issue of relations with the US, but also an attempt to harmonise the internal market, which is meeting resistance from member states. Key economies, including France, Germany and Italy, remain sceptical of the centralisation of telecoms governance, preferring to maintain control over regulation at national level.
The document also addresses infrastructure issues, proposing a unification of spectrum auction rules and a potential revision of digital targets. The Commission allows for the possibility of postponing the date for the complete extinction of copper networks and their replacement by fibre, originally planned for 2030. If local authorities demonstrate that this deadline is unrealistic, Brussels is prepared to be flexible, further evidence that the upcoming legislation will be a set of compromises rather than a radical breakthrough.
