European Commission Proposes New Digital Networks Act

The European Commission has published a proposal for a Digital Networks Act, which aims to harmonize rules for network operators and digital service providers across the EU. If enacted, the regulation will introduce new compliance requirements affecting technical documentation, service interoperability, and data sovereignty. The proposal is part of a broader "Digital Omnibus" effort to consolidate the EU's digital rulebook, impacting cloud and consumer platform operations.

- The proposed regulation is a significant consolidation effort, intended to replace four existing legal frameworks: the European Electronic Communications Code (EECC), the BEREC Regulation, the Radio Spectrum Policy Program, and key parts of the Open Internet and e-Privacy Directives. - A central feature is the creation of a "Single Passport" system, allowing a provider to register in one EU member state and operate across the Union, a change that could also extend authorization requirements to cloud and Content Delivery Network (CDN) providers. - The Act mandates a definitive switch-off of legacy copper networks across the EU by December 31, 2035, requiring member states to develop national transition plans to all-fiber infrastructure. - While the proposal dropped the controversial "fair share" mandate that would have required large tech companies to fund network infrastructure, it introduces a "voluntary conciliation" mechanism for IP interconnection disputes that has raised concerns among some tech firms about a revival of the network fee concept. - The DNA's authorization to provide services will be directly tied to compliance with the revised Cybersecurity Act (CSA 2.0), which empowers the Commission to designate high-risk vendors and prohibit their use in key network assets. - The proposal faces political opposition; at least six member states, including France and Germany, have pushed back against the centralization of power, seeking to retain national control over frequency policy and other regulatory competencies. - A new Operational Digital Networks Office (ODN) would be established to act as a single point of contact for Union-wide authorization and notification procedures and to manage radio spectrum information systems. - The legislative proposal, formally adopted by the Commission on January 21, 2026, now moves to the European Parliament and the Council of the EU for debate and approval under the Ordinary Legislative Procedure.

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