The Digital Networks Act – securing Europe’s digital future

The Digital Networks Act is Europe’s chance to restore competitiveness, deliver investment and innovation, and secure inclusive growth.

Connectivity is the backbone of modern economies, underpinning innovation, productivity, and growth.

Advanced digital networks – including 5G Standalone – are essential for real-time, data-driven services that touch every sector, from smart manufacturing and e-health to AI and quantum computing.

Yet Europe’s digital competitiveness continues to lag global peers and shows no signs of recovering.

It is hampered by fragmented regulation, chronic underinvestment, and an unbalanced digital ecosystem that favours big tech over European operators.

The current regulatory framework for connectivity is too complex and intrusive, stifling the rollout of secure, modern networks.

This not only undermines economic growth but also threatens national security and democratic stability.

The time for decisive action is now.

The Digital Networks Act (DNA) is Europe’s opportunity to reverse decline and support Europe’s ambition to reclaim its digital leadership.

To secure Europe’s technological future and with so much at stake, policymakers must ensure the DNA delivers in three key areas:

Unlocking the digital single market

Europe’s single market is its greatest strategic asset. A truly integrated digital single market could unlock €415 billion annually and create hundreds of thousands of jobs.

Harmonisation across Member States through passporting and Country-of-Origin principles would enable cross-border services, accelerate next-generation network rollouts, and strengthen Europe’s bargaining power globally.

Delaying single market completion means missing out on significant productivity gains and job creation, while leaving Europe behind on cost, speed, and innovation.

Action: Establish an EU-wide spectrum licensing framework to reduce deployment costs and enable cross-border services.

Action: Harmonise satellite service authorisation to allow pan-European operations, especially in emergencies and in rural areas.

Same rules for same services

Europe must modernise its digital framework to ensure fairness and competition. If two services perform the same function, they should be subject to the same rules.

But current asymmetries means that telecoms face stricter obligations than digital platforms. This distorts competition and weakens infrastructure resilience.

Until Europe addresses this, it risks ceding control of its digital infrastructure to global rivals, undermining both competitiveness and user protection.

Action: Recast the outdated Open Internet Regulation to enable innovation and fair competition.

Action: Bring digital service providers into the scope of interconnection obligations and dispute resolution mechanisms.

Simpler regulation that unleashes innovation

Europe’s digital infrastructure is constrained by regulatory complexity. Overlapping rules and inconsistent enforcement deter investment and slow innovation.

This must be simplified. If Europe can eliminate duplication and modernise obsolete frameworks, it can build a competitive, resilient digital ecosystem.

But failing to act will just widen the connectivity gap, especially for people living in rural areas. And it could drive innovative firms and their investors out of Europe.

Action: Remove outdated obligations like the Universal Service Obligation and streamline end user rights regulation.

Action: Repeal the fragmented e-Privacy Directive and integrate its provisions into the DNA to improve clarity and effectiveness.

Reframing regulation for sustainable growth

More widely, the DNA must focus on enabling investment competition and completing the deployment of very high-capacity networks.

Regulation should remain only where competition challenges persist. The preference should be for upstream remedies and strict rules on dominant players during the migration to fibre.

Europe must avoid re-monopolisation and ensure sustainable competition and inclusive infrastructure rollout.

The DNA is Europe’s chance to build a digital future that is competitive, innovative, and inclusive.

By unlocking the single market, ensuring fair rules, and simplifying regulation, Europe must seize the moment to secure its place as a global digital leader, delivering prosperity and resilience for all.