The official European Commission’s Digital Networks Act (DNA) is here just a week after a leaked version appeared to show the death of the controversial "fair share" clause that would have forced large traffic-generating platforms to cover network infrastructure costs for European providers. But upon release of the full text, industry associations warn the idea may not be dead after all.

Instead of the initial DNA proposal of forcing large traffic-generating platforms to cough up to support continental network maintenance upgrades, the proposed legislation instead features a "voluntary conciliation" mechanism aimed at facilitating cooperation and dispute resolution between network owners and providers of content delivery networks (CDNs) and cloud computing services.

In a scathing rebuke of the proposal, the Computer & Communications Industry Association (CCIA Europe) attacked the concept, arguing it could resurrect the once-thought dead fair share concept, and that cooperation between online service providers and telecom operators is already a market reality, thereby making the proposed framework “redundant.”

“The mechanism leaves the door open for legislative amendments or rulings by national regulatory authorities (NRAs) that could turn it into a binding IP dispute-resolution system, effectively resurrecting the widely rejected network fees,” the group said in a statement. “Such a shift will allow dominant telcos to extract unjustified revenues from popular online services. It harms consumers, undermines net neutrality, and negatively impacts the media and cloud sectors.”

Upon unveiling the official DNA text, Henna Virkkunen, EVP for the European Commission's tech sovereignty, security, and democracy, came out in defense of the voluntary approach, arguing that: “We concluded that in general the commercial relationships between telcos and content and application providers are the industry standard to exchange traffic, and work well.

“However, some players litigate before national courts on the issue of Interconnection, and those legal procedures can take many years to be resolved. We think the voluntary conciliation mechanism we propose in the DNA will help parties resolve disputes more easily and ensure efficient, economically sustainable, and reliable end-to-end traffic delivery.”

CCIA Europe, however, argued differently, with Maria Teresa Stecher, the group’s senior policy manager for connectivity and competition, saying: “This is not a ‘voluntary conciliation’ procedure, but one that will create new disputes.”

“It risks harming every part of Europe’s connectivity ecosystem. We are deeply concerned by the proposal’s ambiguous language,” Stecher said. “The ecosystem is functioning well, yet this unnecessary mechanism has been introduced, clearly opening the door to network usage fees.

“The DNA could have been a real opportunity to simplify EU rules and boost competitiveness. Instead, the commission now risks doing the opposite – favoring the interests of outdated telecom monopolies over European consumers, innovative online services, and better connectivity. This is not simplification, it is a step backwards.”

Telecoms sector faces ‘complexification’

Another industry association that aimed at the Digital Networks Act was the GSMA, which represents the telecom industry. That group took issue with the proposed legislation’s apparent failure to “create a more investment-friendly regulatory environment.”

The GSMA contends that the commission's attempts to simplify mobile market conditions have instead resulted in “even more sector-specific rules,” adding: “This is not simplification, it is complexification.”

The trade body also took issue with the voluntary conciliation mechanism, describing it as “unclear.”

“[The voluntary mechanism] falls far short of addressing significant and persistent bargaining power asymmetries,” GSMA said in a statement. “The lack of a more binding conflict resolution mechanism and the missing shift from sector-specific to horizontal regulation perpetuates an un-level playing field, which is detrimental to the telecoms industry and the overall competitiveness of the EU.”

In its response to the DNA, the telecom trade body didn’t entirely despair, as it called for the industry to encourage Member States and the European Parliament to build upon the proposal.

“Europe must not view the DNA as an endpoint but rather as just the start," GSMA added. "The continent’s immediate and long-term economic performance, as well as its security, sustainability, and ability to innovate, depends on its digital capabilities.”