EU roundtable discusses impact of Digital Networks Act on innovation

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Matthew Schruers President & CEO at Computer & Communications Industry Association | Official website

EU roundtable discusses impact of Digital Networks Act on innovation

A diverse group of EU policymakers, regulators, industry leaders, and NGOs gathered in Brussels to discuss the Digital Networks Act (DNA) and its potential impact on Europe's 2030 connectivity goals. The meeting was organized by the Computer & Communications Industry Association (CCIA Europe) to explore how the DNA can foster innovation without compromising the open internet or hindering AI and cloud adoption.

Participants expressed concerns about imposing new obligations on content delivery networks (CDNs) and cloud services. European cloud providers and global hyperscalers warned that such measures could stifle innovation, jeopardizing the EU's aim for 75% business adoption of AI and cloud technologies by 2030.

The discussion highlighted issues with extending the European Electronic Communications Code (EECC) to include cloud providers, digital services, and CDNs. Experts pointed out that this could lead to network usage fees, violating net neutrality principles.

Despite being rejected in previous consultations, some still advocate for an arbitration mechanism in the DNA. The debate also addressed cost-effective technologies like low-Earth orbit satellites to connect underserved areas across Europe, potentially saving billions in subsidies by 2030.

As the Commission plans to unveil the DNA later this year, CCIA Europe's roundtable emphasized policies that encourage innovation while protecting net neutrality. Maria Teresa Stecher from CCIA Europe stated: "Europe’s 2030 connectivity goals are within reach, but achieving them requires the European Union to take a more comprehensive approach – one that fully embraces cloud computing, artificial intelligence, and alternative connectivity technologies like satellites."

She added: "The Digital Networks Act should focus on leveraging all available technologies. That’s why the European Commission should refrain from imposing additional obligations or regulatory burdens – as it would discourage the adoption of innovative connectivity technologies and digital services, harm consumers, and add unnecessary costs to Europe’s digital economy."

Stecher concluded: "Unfortunately, the demand that online content and application providers should have to pay telecom operators for internet traffic that customers already paid for seems to be still alive."