THE European Union is moving to overhaul its digital and connectivity rulebook with new legislation aimed at boosting investment, strengthening security and asserting technological sovereignty, even as industry leaders warn against the economic and geopolitical risks of overreach.
The European Commission this week unveiled the proposed Digital Networks Act, a wide-ranging effort to modernize rules governing fixed and mobile connectivity across the bloc. The measure seeks to simplify regulation, harmonize licensing and encourage cross-border operations to help operators invest in fiber and next-generation mobile networks, according to reports by Mobile World Live.
Key provisions would allow companies to operate across the EU after registering in a single member state, ease spectrum licensing rules, and promote pan-European satellite services through EU-level authorization rather than national permits. The proposal also calls for mandatory national transition plans to phase out copper networks between 2030 and 2035, with member states required to submit plans by 2029.
The Digital Networks Act is accompanied by a parallel push to tighten cybersecurity rules. The Commission has proposed revising the EU Cybersecurity Act to enable the mandatory removal of equipment from so-called high-risk suppliers in critical infrastructure, including mobile networks. While the proposal does not name specific companies or countries, it is widely expected to affect Chinese vendors Huawei and ZTE, which already face restrictions in several EU markets.
The Commission said recent security incidents and geopolitical tensions have highlighted vulnerabilities in the region’s information and communications technology supply chain, making security a matter not only of technical standards but also of supplier dependence and foreign interference.
Industry reaction has been mixed. The GSMA, which represents mobile operators, said it supports stronger cybersecurity but warned that measures must remain risk-based and workable to avoid slowing network upgrades and undermining connectivity goals. Huawei, responding to the proposal, argued that limiting suppliers based on country of origin rather than technical evidence would violate EU legal principles and World Trade Organization rules.
The regulatory push comes as Europe intensifies its debate over digital and technological sovereignty. Speaking at the World Economic Forum in Davos, Ericsson chief executive Borje Ekholm cautioned that efforts to reduce reliance on US technology could backfire. He warned that Europe currently lacks the capability to become fully sovereign in key technologies and that building alternatives could raise costs and strain transatlantic relations, according to a separate MWL report.
At the same time, global momentum on technology regulation is growing. South Korea has followed the EU by enacting an AI safety law that establishes national standards for risk assessment, transparency and human oversight, mirroring elements of the EU’s AI Act that came into force in late 2024.
The Commission’s Digital Networks Act and cybersecurity revisions will now be debated by the European Parliament and the EU Council. If approved, member states would be required to implement the new rules within a year, setting the stage for a more centralized but contested approach to Europe’s digital future.