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Six EU States Challenge Digital Networks Act Amid Consumer and Trade Concerns

Six European Union member states are pushing back against the upcoming Digital Networks Act (DNA), seeking to preserve national control over key telecom rules as the Commission prepares to propose updated legislation in January 2026. Austria, France, Germany, Hungary, Italy, and Slovenia sent a joint position to the Council of the EU urging a rethink of certain provisions, according to Brussels-based media reports.

The countries’ main concern is retaining authority over frequency management and other core telecom policies. Previous discussions among EU ministers have also raised doubts about network fees, easier mergers for telecom companies, and extending telecommunications regulations to digital services to create a so-called level playing field.

At the Transport, Telecommunications, and Energy Council in December 2024, ministers expressed caution regarding IP interconnection dispute resolution mechanisms, commonly referred to as network fees. They argued that the EU’s IP interconnection market operates effectively and that national regulatory authorities are capable of resolving disputes independently. The ministers also questioned whether the DNA should apply the same regulations to tech companies as to telecommunications firms, noting that regulatory measures should consider each company’s activities across the value chain.

Mergers were another point of debate. Ministers warned that simplifying telecom mergers could affect competition in smaller markets unable to operate across the EU, emphasizing the need to assess national impacts before making changes.

Consumer groups have voiced opposition to network fees, highlighting potential negative effects on competition, innovation, and net neutrality. In July, business and consumer organizations, including those generally supportive of strict regulation, warned that revisiting network fees — initially proposed by telecom operators in 2022 — would harm consumers and the market.

Trade considerations are also at play. The US-EU trade agreement signed in late August includes a clause in Article 17 in which the EU commits to not introducing network fees. Whether the Commission will adhere to this commitment remains uncertain, particularly as tensions in US-EU trade relations persist.

The European Commission’s own Regulatory Scrutiny Board has expressed reservations about the preparedness of the DNA. The board, which provides early-stage quality control and guidance for impact assessments, issued a negative opinion in late October, reportedly delaying the draft legislation originally scheduled for late December.

The combined pressure from member states, consumer advocates, trade partners, and internal watchdogs indicates that the Commission may face one of its most challenging legislative efforts next year. The DNA aims to modernize digital infrastructure rules across the EU, but its path forward is uncertain as differing national interests, legal considerations, and market concerns continue to shape the debate.

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