EU Digital Networks Act Prioritizes Telecom Investment Over Regulation
The European Commission is preparing to unveil the Digital Networks Act on Jan. 20, reported Reuters on Thursday, citing people with direct knowledge of the matter.
DNA is a major overhaul of EU digital and telecom rules aimed at boosting competitiveness and accelerating investment in broadband and fiber infrastructure.
Despite strong lobbying from European telecom operators, the proposal is expected to stop short of imposing mandatory requirements on large U.S. technology companies.
Under the draft framework, companies such as Google, Meta, Amazon, Netflix and Microsoft would participate in a voluntary system focused on cooperation and dialogue, rather than enforceable obligations, the report noted, citing sources.
National Regulators May Push Back
While the proposal aims to reduce regulatory fragmentation and ease the burden on telecom operators, some national authorities may view the measures as an expansion of Brussels' influence.
Governments will also be allowed to extend the 2030 deadline for phasing out copper networks if they can demonstrate delays in readiness.
The proposal will still require approval from EU member states and the European Parliament before becoming law.
In December 2025, the Donald Trump administration warned the U.S. could retaliate against European service firms, accusing the EU and some member states of targeting American companies with unfair lawsuits, taxes, fines and regulatory requirements.
The agency pointed to firms such as Mistral, Accenture plc (NYSE:ACN), Amadeus IT Group SA(OTC:AMADF), Siemens AG(OTC:SIEGY) and Spotify Technology Inc.(NYSE:SPOT) as examples of Europe-based companies with wide access to American customers.
Benzinga Edge Stock Rankings indicate that Meta carries a bearish outlook over the medium and long term, even as its shares continue to show short-term strength—see how the stock compares with its peers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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