Alphabet’s (GOOGL) (GOOG) Google, Meta Platforms (META), Netflix (NFLX), Microsoft (MSFT) and Amazon (AMZN) will not face stringent regulations in the EU’s digital networks rule revision despite calls from telecom companies, Reuters reported, citing people familiar with the matter.
EU tech chief Henna Virkkunen will unveil the revised rules called the Digital Networks Act, or DNA — which aims to bolster EU’s competitiveness and investments in telecom infrastructure — on Jan. 20, the report added.
The European Commission did not immediately respond to a request for comment from Seeking Alpha.
Virkkunen will need to figure out the details with EU countries and the European Parliament in the coming months before the DNA becomes law.
The tech giants will be subject only to a voluntary framework rather than binding rules to which telecom providers have to adhere, the report noted.
“They will be asked to cooperate and discuss voluntarily, moderated by EU telecoms regulators’ group BEREC. There will be no new obligations. It will be a best practices regime,” said one of the people, according to the report.
Under the draft DNA, the European Commission will also set out the duration of spectrum licensing, the terms for the sale of spectrum, and a pricing methodology to guide national regulators during auctions of spectrum, which can provide billions of euros for governments, the report added.
While the aim is to harmonize the allocation of spectrum across the 27-member EU and lower the regulatory burden for telecom companies, some national regulators could see it as a power grab, the report noted.
Under the proposed revision, the European Commission will provide guidance to national regulators on the rollout of fiber infrastructure, vital to achieving its digital goals and catching up with the U.S. and China, the report noted.
The DNA will also allow governments to extend the 2030 deadline for replacing copper networks with fiber infrastructure if they can show that they are not ready, the report added.