Alphabet, Meta, Amazon, Microsoft to avoid binding obligations in new EU tech overhaul

Alphabet, Meta, Netflix, Microsoft, and Amazon will avoid heavy-handed regulation under the European Union's upcoming digital rule overhaul. As per a Reuters report, the European Commission has decided against imposing binding obligations on tech giants despite sustained pressure from telecommunications providers.

EU tech chief Henna Virkkunen is scheduled to present the Digital Networks Act (DNA) on January 20. This legislative package intends to improve European competitiveness and stimulate investment in telecommunications infrastructure. While the Commission has declined to comment on the specifics, the draft indicates that tech companies will operate under a voluntary framework rather than the mandatory requirements faced by traditional telecom operators. Under this regime, the Body of European Regulators for Electronic Communications (BEREC) will moderate discussions and cooperation between sectors. One source confirmed that the DNA will focus on best practices rather than creating new legal obligations for the tech sector.

The proposed rules also address the management of spectrum licensing across the 27-country bloc. The Commission intends to establish specific durations for spectrum licenses, conditions for sales, and pricing methodologies to guide national regulators during auctions. These auctions often generate billions of euros for national governments. While the EU aims to harmonize these processes to reduce regulatory burdens, the move may be perceived as a power grab by national authorities who currently maintain control over spectrum allocation.

Additionally, the DNA includes guidance for the rollout of fiber infrastructure as Europe seeks to close the digital gap with the United States and China. The proposal allows member states to request extensions beyond the 2030 deadline for replacing copper networks with fiber, provided they can demonstrate lack of readiness. Following the presentation on January 20, Virkkunen will negotiate the final details of the act with EU member states and the European Parliament before the legislation is finalized