Why is the EU easing pressure on Big Tech in its digital overhaul, and what does it mean for Europe’s telecom ambitions and global tech regulation balance?
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| The EU’s Digital Networks Act reflects a strategic shift, easing regulatory pressure on Big Tech while reshaping spectrum and fibre policy across Europe. Image: CH |
Tech Desk — January 9, 2026:
The European Union’s latest attempt to reshape its digital landscape is revealing a more cautious tone toward Big Tech, underscoring a strategic recalibration after years of tough regulatory action against U.S. technology giants.
Under the forthcoming Digital Networks Act (DNA), companies such as Alphabet, Meta, Amazon, Microsoft and Netflix are expected to avoid binding new obligations, despite sustained lobbying from Europe’s telecom operators. Instead, according to people with direct knowledge of the discussions, the tech groups will be drawn into a voluntary cooperation framework overseen by the EU telecoms regulators’ body, BEREC, focused on dialogue and best practices rather than enforceable rules.
The approach marks a contrast with the EU’s recent regulatory drive, which produced heavyweight legislation such as the Digital Markets Act and the Digital Services Act. Those measures sparked criticism from Washington, which argued they unfairly targeted American firms—claims Brussels has consistently rejected. Still, the political sensitivity appears to have influenced the Commission’s thinking as it prepares to unveil the DNA later this month.
At its core, the Digital Networks Act is less about curbing Big Tech’s market power and more about shoring up Europe’s struggling telecoms sector. European operators face mounting investment demands as they roll out fibre and next-generation networks, while revenues remain under pressure from intense competition and fragmented regulation across the bloc.
To address this, the Commission plans to use the DNA to harmonise key aspects of spectrum policy, including licence durations, auction conditions and pricing methodologies. Spectrum sales can raise billions of euros for national governments, making them politically sensitive and a potential flashpoint between Brussels and national regulators, some of whom may view the proposals as an erosion of their authority.
The DNA also places heavy emphasis on fibre infrastructure, which the EU sees as essential to closing the digital gap with the United States and China. While the Commission is pushing for faster deployment, it is also allowing flexibility: governments will be able to extend the 2030 deadline for replacing copper networks with fibre if they can demonstrate they are not yet ready. Supporters argue this pragmatism reflects economic realities; critics fear it could weaken momentum.
For Big Tech, the voluntary framework offers a temporary reprieve rather than a permanent exemption. Their inclusion in structured discussions keeps them within the EU’s regulatory sphere and leaves the door open to tougher measures if political pressure from telecom operators and member states intensifies.
Taken together, the DNA illustrates a shift in Brussels’ digital strategy. After years of assertive rule-making aimed at reining in dominant platforms, the Commission is now prioritising investment, competitiveness and infrastructure resilience. Whether this softer touch toward Big Tech will accelerate Europe’s digital ambitions—or simply defer an inevitable reckoning over who pays for the networks underpinning the digital economy—will become clearer as negotiations with EU countries and the European Parliament unfold in the months ahead.