POSITION | DIGITAL POLICY | DIGITAL NETWORKS ACT
Digital Networks Act: Consultation Creating the digital infrastructure of the future
10 July 2025 Executive Summary Europe’s competitiveness is under severe pressure. The EU has fallen behind the USA and China in terms of growth, productivity and innovative strength. Against this background, German industry has very much appreciated the attention to digital infrastructures attributed by the European Commission through the White Paper “How to master Europe’s digital infrastructure needs”, the Letta Report and the Draghi Report. The assessments correctly describe the status quo of digital infrastructures in terms of facing investment challenges, the need to stay resilient and technologically future-proof. They rightfully acknowledge the need for a streamlined, simplified and more harmonised regulatory approach to digital networks, with the ultimate goal of achieving the Digital Single Market, which was also highlighted in the Letta Report. They also rightly identified the low profitability of the electronic communications sector and the resulting inability to fund the substantial investments required for modernizing the digital infrastructure as a key problem that has to be addressed. BDI fears that if these issues are not swiftly addressed, Europe’s communication infrastructure will not enable European companies to develop and utilise the digital solutions, such as AI and quantum computing, necessary for maintaining European industry’s global competitiveness. For example, AI-driven innovation is set to revolutionize our entire way of life, and the investment needed to prepare properly will be significant. Part of this investment will be to build the physical infrastructure underpinning the AI revolution. Recognising the importance of digital networks for European industry’s competitiveness as well as access to state-of-the-art and secure connectivity, able to address the most advanced needs of consumers and industries alike, the Digital Networks Act (DNA) should not only introduce ambitious simplification and harmonization but also foster further innovation in the sector. In a nutshell: Evaluation of the Commission’s proposed measures
Simplification: An ambitious reform of the current regulatory framework is essential for the upcoming DNA — including a shift towards horizontal consumer protection law, aiming towards an overall more coherent and simpler regulatory framework. Moreover, to facilitate the rollout of gigabit networks, the Commission should cut unnecessary red tape and overly bureaucratic requirements as well as facilitate cross-border services. This includes reducing information and reporting obligations, streamlining authorisation procedures and preventing gold-plating at the national level.
Philipp Schweikle | Digitalisation and Innovation | T: +49 30 2028-1632 | p.schwiekle@bdi.eu | www.bdi.eu