Will the EU bow to industry pressure and reform telco laws?

The European Commission’s internal review has cleared the way for a proposed overhaul of EU telecom rules, sparking industry efforts for easier mergers and unified regulation, as the Digital Networks Act moves towards final legislative consideration in 2024.

The European Commission’s internal regulatory scrutiny body has given provisional approval to a draft overhaul of EU telecom rules, clearing a key hurdle ahead of the planned presentation of the Digital Networks Act to EU lawmakers on Jan.20, according to MLex. The sign-off from the commission’s Regulatory Scrutiny Board means the proposal is now set for formal political consideration at the start of next year, officials involved in the process told MLex. ^[1]

The Digital Networks Act is being framed by the Commission as a broad legislative push to modernise rules governing digital infrastructure and to accelerate the deployment of high‑capacity networks across the bloc. According to Reuters reporting earlier this year, the Commission has already signalled it will not pursue compulsory “network fees” on large online platforms as a means of financing rollout, and instead intends the DNA to be the principal vehicle for shaping investment incentives and obligations. ^[1][3]

Europe’s biggest telecom groups have moved quickly to try to shape the debate. Chief executives at several major operators, including Deutsche Telekom, Orange and Telefónica, co‑signed a letter to European Commission president Ursula von der Leyen asking for eased merger rules and faster routes to scale, arguing that the ability to consolidate would unlock the investment needed to compete with U.S. and Asian rivals. The industry case stresses that larger, fewer players could mobilise capital for fibre and 5G build‑out. Reuters reported this coordinated appeal in late October. ^[4]

At the same time, incumbent operators are campaigning for a simpler, more unified regulatory framework. Connect Europe’s proposal, as reported in the Spanish press, seeks to replace a patchwork of some 34 national and sectoral rules with a streamlined horizontal framework covering consumer protections, competition obligations and cross‑border market rules, which telcos say would reduce fragmentation and improve commercial sustainability. Critics argue such consolidation risks removing safeguards for smaller rivals. ^[6]

That criticism has already surfaced publicly. An alliance of smaller operators, among them Vodafone, Iliad and 1&1, warned in July that proposals to relax fixed‑network obligations for dominant players could accelerate “re‑monopolisation” and hamper fibre expansion by disadvantaging smaller competitors that rely on regulated access to incumbent infrastructure. The group’s open letter framed the issue as a potential regression from established EU competition principles. ^[2]

The DNA debate is also the battleground for long‑running arguments over whether large content and platform firms should directly contribute to network costs. The European Commission has said imposing network fees on Big Tech is not a viable funding solution, a conclusion reiterated in a July statement to Reuters referencing a 2024 White Paper. Parallel lobbying by 84 associations, including broadcasters, consumer groups and digital rights organisations, has warned that any “fair share” levy would threaten net neutrality and should not be introduced. Those groups published a joint statement rejecting mandatory fees as part of the telecom overhaul. ^[3][5]

Separately, the Commission’s wider interest in adapting competition rules to the digital age has prompted a public consultation on merger control reforms, seeking input on how to weigh innovation, resilience and digitalisation alongside traditional price‑and‑market‑power metrics. Reuters noted the consultation has provoked divisions, with some national regulators warning that loosening merger standards could reduce consumer choice and service quality rather than promoting investment. ^[7]

With the Regulatory Scrutiny Board’s clearance, the DNA’s final form will be shaped by inter‑institutional negotiations and intense industry and civil society lobbying in the run‑up to its presentation on Jan.20. The Commission’s choice to emphasise legislative measures rather than network levies has narrowed the policy battleground to questions over access obligations, market structure and merger policy, areas where the industry’s desire for scale and many smaller players’ plea for maintained access rights are likely to collide as lawmakers and member states weigh trade‑offs between investment and competition. ^[1][4][2]

##Reference Map:

• ^[1] (MLex) – Paragraph 1, Paragraph 2, Paragraph 8
• ^[3] (Reuters) – Paragraph 2, Paragraph 6
• ^[4] (Reuters) – Paragraph 3, Paragraph 8
• ^[6] (Cinco Días/El País) – Paragraph 4
• ^[2] (Reuters) – Paragraph 5, Paragraph 8
• ^[5] (Euronews) – Paragraph 6
• ^[7] (Reuters) – Paragraph 7

Source: Fuse Wire Services