EU Proposes New Digital Regulations
The European Commission has published a proposal for a Digital Networks Act to regulate infrastructure and ensure fair competition. This comes alongside a broader Digital Omnibus proposal that aims to consolidate the EU's digital rulebook, potentially creating new obligations for interoperability and user rights.
- The "fair share" debate, which would have required large tech companies to contribute to network infrastructure costs, has been set aside for now. Instead, the Digital Networks Act (DNA) introduces a voluntary conciliation mechanism to help resolve interconnection disputes between telecom operators and large traffic generators. - A key objective of the DNA is to replace the fragmented 2018 European Electronic Communications Code with a directly applicable regulation, creating a more unified single market for telecommunications. This includes a "Single Passport" authorization that would allow providers to operate across the EU after registering in just one member state. - The proposal, championed by Internal Market Commissioner Thierry Breton, aims to accelerate the transition to cloud-based and software-defined network models. This is part of a broader strategy to ensure Europe's digital infrastructure can support the growth of AI, cloud computing, and other advanced technologies. - A mandatory, structured switch-off of legacy copper networks is mandated, with a target for completion by December 31, 2035. Member states are required to submit national transition plans by 2029 to facilitate the move to fiber-to-the-home (FTTH) infrastructure. - The accompanying Digital Omnibus proposal amends several existing regulations, including the GDPR. Proposed changes include clarifying the definition of "personal data" to be relative to an entity's reasonable ability to identify an individual and extending the GDPR breach notification deadline from 72 to 96 hours. - For cloud services, the Digital Omnibus proposal refines the Data Act's switching and interoperability rules. It would exempt customized (non-IaaS) data processing services and smaller providers from certain obligations for contracts signed before September 12, 2025. - The legislative proposals will now be debated and amended by the European Parliament and the Council. If adopted, most provisions of the DNA would become directly applicable six months after the regulation enters into force.
