Leadership in key technology standards matters not only for economic prosperity, but also for Europe’s security, strategic autonomy, and defence capabilities. 

Chinese President Xi Jinping famously said that “who obtains the standards gains the world,” but leaders in other countries, including Italian Former Italian Prime Minister Enrico Letta and the newly confirmed European Commission Vice President Henna Virkkunen, have also recognised the strategic importance of standards.

Standards for advanced mobile communication, such as the sixth-generation cellular standard (6G), are a case in point. A statement issued after the Trade and Technology Council meeting in April 2024 listed 6G among critical and emerging technologies and showed a clear commitment to build a Transatlantic leadership in 6G to ensure a secure digital infrastructure for the future. 

NATO highlights communications security threat

NATO recently listed next-generation communications networks among several key emerging and disruptive technologies. It emphasised the critical importance this technology has for the West’s defence capabilities. Across the Atlantic, the U.S. government has long recognised that a loss of leadership in advanced mobile communications technology standards would be detrimental to national security. Security experts have repeatedly emphasised this point (see here, here, here and here).

The EU, together with its closest allies, is well positioned to lead in 6G with prominent innovators and trusted suppliers. Ericsson and Nokia are not only providers of critical communication infrastructure, but for decades, they have been recognised as principal contributors to the development of standards for advanced mobile communication worldwide. The ultimate success of the EU in 6G will depend, nonetheless, on whether it enacts coherent policies that foster the ability of allied technology inventors to invest in R&D, lead in the development of future standards, and ensure the availability of secure telecommunications equipment. 

EU SEPs proposal undermines R&D incentives

The European Commission’s proposal for a SEP regulation poses a significant threat to the EU’s leadership position in 6G. By introducing a massive administrative burden on innovators that contribute fundamental technologies to industry standards, as well as a rate-setting procedure and limitations on access to courts, the proposed regulation risks undermining the position of key Western innovators of cellular technologies. That, in turn, reserves severe repercussions for Europe’s national security and strategic autonomy, as well as for its defence capabilities. 

The proposed regulation would lead to a loss of R&D revenue for leading Western cellular innovators, undermining their leadership and competitiveness in the development of standards for advanced mobile communication. Developing technologies that underpin cellular standards requires billions of euros up-front, with no guarantee of success. For many generations of cellular standards, Western leaders have relied on patent licensing to obtain a fair return on investment and continue the R&D cycle. By injecting significant hurdles on their ability to licence and enforce patents that protect technologies included in standards, the proposed regulation would limit the ability of Western innovators to keep funding their R&D and, in this way, maintain their technological edge in 6G. 

Europe’s loss, others’ gain

Regions such as China, whose companies rely extensively on public funding to finance their R&D investments, would have a significant advantage in leading the development of 6G and future standards. Given the security concerns about certain non-allied telecommunications companies generating choke points of vulnerability for allied nations, a shift to such third-country dominance in 6G would be problematic for the EU’s security and its strategic autonomy. Indeed, the EU would have to rely on standards developed abroad, with little ability to control their security and evolution.

In short, the proposed SEP regulation has potentially pivotal implications for EU technological leadership, its strategic autonomy, and its regional security. So far, the Commission has undertaken no assessment of such potential effects. Such an evaluation is urgently needed in light of the goals outlined in European Commission President Ursula von der Leyen’s mission letter to Commissioner Virkkunen. That letter emphasised the need to “maintain or attain leadership in strategic technologies” and strengthen EU security, competitiveness, and resilience. 

We hope the new Commission will undertake to fully understand the security implications of its decisions before signing off on new initiatives or regulations that could unwittingly jeopardise European security.