Position Paper On European Commission’s Proposal for a Digital Networks Act

Dear Sirs and Madams,

The Bulgarian Entrepreneurial Association (BESCO) welcomes the European Commission’s proposal for a Digital Networks Act (DNA) and its ambition to modernise Europe’s connectivity framework, reduce regulatory fragmentation and strengthen the Single Market for electronic communications.

BESCO represents more than 950 companies across a wide range of industries. Our mission is to improve Bulgaria’s business environment by advancing effective public policies, fostering innovation and supporting sustainable economic development.

Reliable, secure and affordable digital connectivity is a fundamental prerequisite for Europe’s competitiveness. Startups and scaleups increasingly depend on advanced digital infrastructure to develop and deploy solutions in areas such as artificial intelligence, cybersecurity, digital health, connected mobility, advanced manufacturing and cloud services.

At the same time, investment in connectivity must be accompanied by strong protection of the open internet. The final framework should combine investment incentives and regulatory simplification with clear safeguards for equal and non-discriminatory access.

1. Net neutrality

BESCO strongly supports the codification of net neutrality principles under Article 93(1)-(4). The prohibition of blocking, throttling and commercially motivated discrimination provides essential legal certainty for European businesses and consumers.

Net neutrality is particularly important for startups. Unlike large incumbent companies, early-stage businesses usually lack the financial resources and bargaining power to negotiate preferential conditions with telecommunications operators. Their ability to compete depends on an environment in which access to users is determined by the quality of their products rather than their capacity to pay for preferential treatment.

The open internet has lowered barriers to market entry and allowed innovative companies to scale across borders. Maintaining this principle is therefore essential for competition, innovation, investment and consumer choice throughout the European Union.

BESCO recommends preserving these protections throughout the legislative process and ensuring that future implementing measures do not weaken them, either directly or indirectly.

2. More integrated Single Market

BESCO welcomes the introduction of a single authorisation regime to replace fragmented national frameworks. Regulatory fragmentation remains a significant obstacle for European companies seeking to expand across borders.

Multiple authorisation procedures, divergent interpretations and overlapping administrative requirements increase costs and divert limited resources away from product development, recruitment and international growth.

The harmonised framework should be fully digital, accessible in English and based on standardised requirements, procedures and deadlines across Member States. This would make it easier for startups and scaleups to operate across the EU and contribute to a genuine Single Market for digital services and connectivity.

3. Spectrum and next-generation networks

BESCO supports stronger spectrum coordination and the accelerated deployment of 5G and future 6G networks. Advanced connectivity is increasingly important for AI-enabled services, autonomous systems, industrial automation and other emerging technologies.

High-capacity infrastructure should be available throughout Europe, including outside major urban centres. The framework should also facilitate access to spectrum for experimentation, regulatory sandboxes and the testing of emerging technologies.

4. Specialised services

BESCO recognises that certain services may require technically optimised connectivity. Nevertheless, Articles 93(5) and 93(6) must not enable commercial discrimination or lead to the creation of a two-tier internet.

The current safeguards are broadly formulated, while important details are left to future implementing acts. This creates regulatory uncertainty and may disproportionately benefit larger companies that possess the resources and bargaining power to negotiate and finance differentiated arrangements.

BESCO therefore recommends:

• defining stronger and more specific safeguards directly in the legislative text;
• limiting specialised services to cases in which technical optimisation is objectively necessary and proportionate;
• ensuring that such services cannot substitute for or negatively affect general internet access;
• introducing transparent and non-discriminatory eligibility and pricing conditions;
• requiring effective regulatory monitoring of their impact on internet access quality and market competition;
• conducting a mandatory startup and SME impact assessment before adopting implementing measures under Article 93(6).

5. Voluntary conciliation

The proposed conciliation procedure between network operators and online service providers must remain genuinely voluntary. Non-participation must not result in less favourable network access, and regulators should not be empowered to impose commercial agreements or financial obligations.

The mechanism must not become an indirect pathway towards mandatory network fees based on traffic volumes or company size. Such obligations would increase barriers to scaling and disproportionately affect growing European companies.

Conclusion

BESCO supports the objectives of the Digital Networks Act to improve connectivity, reduce regulatory fragmentation and strengthen net neutrality. However, Europe’s competitiveness depends not only on better infrastructure but also on fair and predictable access to it.

The final framework should preserve the open internet, establish stronger safeguards for specialised services and ensure that voluntary cooperation mechanisms do not create new costs or barriers for startups. This balance is essential to enabling European innovators to grow across borders and compete globally.

Respectfully,

Alexander Nutsov

Executive Director

Bulgarian Entrepreneurial Association (BESCO)