Hogan Lovells 2024 Election Impact and Congressional Outlook Report
The European Commission published on 21 February 2024 a white paper named "How to master Europe's digital infrastructure needs?" which launches a public consultation on 12 scenarios setting out the European Commission's ideas for possible policies and a future regulatory framework concerning the following three pillars for the development of secure and sustainable digital infrastructures in the EU: (i) Creating the "3C Network" – "Connected Collaborative Computing", (ii) Completing the Digital Single Market and (iii) Secure and resilient digital infrastructures for Europe. The consultation will close on 30 June 2024.
The European Commission's white paper "How to master Europe's digital infrastructure needs?" relates to one of the four main targets of its Digital Decade Policy Programme 2030 – secure and sustainable digital infrastructures.
Such digital infrastructures are considered as the basis for a successful digital economy and society and, if missing, the EU will not be in a position to assume a major role in key digital areas such as artificial intelligence (AI), the Internet of Things (IoT), autonomous driving, smart buildings and personalised healthcare.
Amongst other items, the white paper identifies the necessity to catch up in certain sectors, in particular, with respect to fibre and 5G networks and edge computing infrastructure. All of this will require significant investments and a supportive economic and regulatory landscape.
With the aim to ensure that the EU meets its 2030 targets for digital infrastructures, the European Commission is proposing and contemplating the following:
Large-scale pilots for end-to-end integrated infrastructures and platforms in telecommunications and technology are contemplated, on the basis of which various innovative technologies and AI applications could be developed.
At an institutional level, a new Important Project of Common European Interest (IPCEI) focusing on infrastructure is proposed to be introduced for discussion in the European Commission's Joint European Forum for Important Projects of Common European Interest (JEF-IPCEI).
Given the significant investment requirements to establish a collaborative connectivity and computing ecosystem, the aim is to create a simplified and coordinated support framework utilising European, national, public and private funding and seeking synergies with other existing programmes.
The European Commission is exploring the need for changes to the current regulatory framework. Main goals are ensuring a level playing field for the participants in the digital networks market (including end-users), reducing efforts for companies and increasing efficiency without neglecting public interests such as end-user protection and promoting territorial coverage. This includes accelerating the transition away from copper and adapting access policies for full fibre environments ("greening of digital networks"). Other activities may involve integration and harmonisation measures at EU level with regard to relevant authorisation processes for operators in order to facilitate a digital single market and building scale of activities.
The European Commission considers advanced research and innovation activities for new fibre and cable technologies and the establishment of a Cable Project of European Interest (CPEI) list and labelling system under the Connecting Europe Facility (CEF). In order to address the financing side, it is contemplated to analyse other available instruments with a view to attracting private investments in support of CPEIs; this may include a potential equity fund.
The list is completed by proposals for the introduction of a joint EU governance system on submarine cable infrastructures and the harmonisation of security requirements in international fora.
It will be interesting to see the outcome of the consultation and what concrete actions the European Commission will initiate to implement secure and sustainable digital infrastructures in the EU. In any case, we expect a lot of needs and opportunities for investments. We are monitoring these developments; please feel free to contact any of the authors of this note or the Hogan Lovells lawyer with whom you regularly work if you would like to discuss this further.