CISPE Applauds Council’s Warning that Extending Telcoms Regulation to Cloud Providers could Harm Europe’s Digital Transformation

Dec 11, 2024 | Comments

Last Friday, EU Member States unanimously approved a strong response to the Commission’s White Paper on ‘How to Master EU’s Digital Infrastructure Needs,’ as well as the Draghi and Letta reports. Their message is unequivocal: proposals that undermine Europe’s open internet, stifle competition, or prioritise a few dominant telecom operators over the broader ecosystem, threaten Europe’s Digital Transformation.

The Council’s Conclusions instead champion the principles of fairness and innovation, urging the Commission to adopt policies that serve the interests of all stakeholders—businesses, consumers, and society—rather than catering only to incumbent telecom giants.

CISPE particularly welcomes the Council’s pushback against extending telecom regulations to the cloud sector. As we have consistently explained, cloud and telecoms are distinct, albeit complementary industries. Cloud providers support telecoms providers, just as they support countless other sectors, but this does not justify subjecting them to telecom-specific rules. Misguided regulation risks stifling the cloud sector’s growth, which is an essential driver of Europe’s digital transformation goals under the EU’s Digital Decade strategy.

The Commission now has a critical opportunity to recalibrate its approach. Armed with extensive feedback from Member States, BEREC and other stakeholders, it is time to abandon ill-advised ideas that could harm Europe’s digital progress. Instead, any new regulatory proposal, including the Digital Networks Act, must reflect technical and commercial realities and be underpinned by rigorous impact assessments.

This debate is more than regulatory fine-tuning—it’s a defining moment for Europe’s digital future. Decisions made now will shape Europe’s infrastructure, cloud adoption, and global competitiveness for decades to come. By embracing an evidence-based and forward-thinking approach, the EU can secure its leadership in digital innovation and empower its digital economy to thrive.

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