Overview
Introduction
On June 6, the European Commission (the Commission) launched a long-awaited public consultation on its proposed Digital Networks Act (DNA), a forthcoming regulation poised to reshape the EU’s regulatory framework for electronic communications. This initiative marks a significant step in updating the regulatory environment governing Europe’s communication infrastructure since its last revision in 2018. The consultation, open until July 11, invites stakeholders to contribute to the emergence of a regulatory framework addressing the needs of a rapidly evolving environment. On June 17, the Commission started a separate public consultation for the revision of its Recommendation on relevant markets in electronic communications. The Commission has set a provisional date of December 10 for the publication of a digital package that will include the DNA and potentially a revised Recommendation as well. These current consultations present a critical opportunity for businesses to influence the future of Europe's digital communication infrastructure.
Background
Europe’s current telecommunications framework has evolved over three decades, beginning with liberalization efforts in the late 1980s and culminating in the 2018 European Electronic Communications Code (EECC), which aimed to harmonize rules across Member States while encouraging competition and infrastructure investment. However, the system remains fragmented, because diverging national rules and enforcement practices continue to hinder cross-border operations. As a result, investment in very high-capacity networks like fiber and 5G is uneven and slow, and spectrum allocation policies vary widely.
Recognizing these shortcomings, former Digital Commissioner Thierry Breton signaled a fresh direction in his 2024 white paper “How to Master Europe’s Digital Infrastructure Needs?”, which laid out a vision for an integrated, resilient telecoms market that could accelerate fiber and 5G/6G rollouts, eliminate investment barriers, and improve consumer access, particularly in underserved or rural areas. In addition, according to the Commission’s “call for evidence” document of June 6, the transposition of the EECC and previous directives into national law has often led to overregulation. Unlike previous telecoms directives, the DNA is expected to be a regulation, and thus directly applicable across the EU.
Key Features of the New Framework: What to Expect
The Commission’s public consultation focuses on its central ambitions with the DNA. This consultation asks stakeholders to provide practical input on several longstanding structural challenges in the telecoms sector. The DNA seeks to reduce regulatory burden and reporting obligations by up to 50%, harmonize authorization regimes, and consolidate frameworks like the EECC, the Body of European Regulators for Electronic Communications (BEREC) Regulation, Open Internet Regulation, and Radio Spectrum Policy Program into a singular, unified structure. On spectrum management, the DNA might standardize policies across borders, extend license durations, and support efficient 6G spectrum allocation. It also seeks to address barriers to cross-border operations, ensuring fair conditions for satellite operators.
In addition, a shift to a more dynamic regulatory system is being considered. The central question is whether the current model - asymmetric sector-specific ex ante regulation - should be replaced by ex post rules, such as competition law, with ex ante regulation being retained only in cases of persistent market failure.
Under the proposed model, ex ante measures could be imposed by national regulators selectively, where competition concerns exist, following a market review based on the existing “three-criteria-test”[1] and a geographic market definition, subject to review by the Commission, BEREC, and national regulators. The Commission would retain veto power over such national decisions. While certain European telecoms associations, e.g., European Competitive Telecommunications Association (ECTA) representing the challengers, have stressed the need for continued ex ante regulation, associations representing Europe's larger telecoms operators, e.g., Global System for Mobile Communications Association (GSMA), have welcomed the DNA initiative and stressed the need for harmonization and simplification.
One key area of debate in this context is the future of the Commission’s Recommendation on relevant markets in electronic communications. This soft law instrument defines which markets are susceptible to ex ante regulation and should be scrutinized by the national telecom regulators. Of the initial eighteen candidate markets as defined in 2003, only two remain listed since the latest revision of the Recommendation in 2020, and another review process has just begun. On June 17, the Commission launched a specific public consultation for that purpose, running until September 17. The markets listed in the Recommendation play a critical role in enabling new entrants to compete by granting them access to the incumbents’ network infrastructure on fair terms. Further deletions of markets from the recommendation could therefore weaken targeted support mechanisms for market entry and competition.
Another contentious issue raised in the consultation revolves around the so-called “fair share.” The question at stake is whether large content and application providers that account for a significant share of network traffic, such as streaming or cloud platforms, should be required to contribute financially to the costs of the underlying electronic communications infrastructure. While telecoms operators have argued that this contribution would help ensure sustainable investment in networks, digital rights groups and tech companies warn that such a model could undermine net neutrality and create unfair burdens on digital service providers. The public consultation seeks evidence on the economic and legal implications of any such cost-sharing mechanisms.
Sustainability is another key pillar of the consultation, and feedback is expected about measures such as environmental reporting obligations, eco-labeling for equipment, and plans to accelerate the switch from copper to fiber through an EU-wide phase-out date. Stakeholders are invited to provide input on harmonized fiber products and streamlined access to infrastructure between operators.
Outlook and Key Takeaways for Businesses
The DNA is set to be one of the most significant reforms in the telecoms sector since its liberalization. With a legislative proposal anticipated in late 2025, and its adoption and implementation process likely to unfold over several years, businesses involved in connectivity, digital services, infrastructure development, and related fields should begin preparing for the future now. The current call for evidence is a good opportunity to shape these rules. Network operators, content delivery networks, and digital platforms should consider responding directly to the consultation. The outcomes could affect core aspects of their business models, from how spectrum is acquired, to how infrastructure costs are shared, to whether they may be required to contribute financially to universal service or network rollout obligations.
For businesses seeking to stay competitive, the message is clear: early engagement, regulatory foresight, and internal alignment with the EU’s digital and sustainability objectives will be critical. The DNA is not just a reform of the telecom regulations, but the blueprint for how Europe’s digital backbone will function in the decades to come. The two current public consultations - on the DNA and on the Recommendation - will be evaluated and processed together by the Commission before year end. Please turn to Steptoe’s antitrust team if you wish to discuss any of these developments and their potential impact on your business.
[1] Art. 67(1) EEEC: (1) high and non-transitory barriers to entry, (2) a structure that does not tend towards effective competition and (3) competition law alone is insufficient to adequately address the identified market failures.
