The updated draft law 4066 on the regulator threatens Ukraine’s digital European integration


Today, the Committee on Digital Transformation will consider an updated version of draft law 4066. BRDO experts see the amendments as a threat to the telecom reform and European integration and have prepared a corresponding appeal to relevant authorities.

What is it about?

Almost a year ago, the parliament registered draft law No.4066 designed to ensure the independence of the telecom regulator, as well as introduce a procedure for competitive selection for positions of its members.

However, the amendments to the draft law undermine the independence of the sectoral regulator, do not comply with the Constitution of Ukraine, the Ukraine-EU Association Agreement, pose a significant risk to the reform provided for by the Law “On Electronic Communications” and prospects for integration into the EU Digital Single Market.

In particular, the President of Ukraine will be able to influence the appointment and dismissal of regulator’s members. After all, this will be influenced by the Expert Council on Digitalization the composition and functions of which are determined by the Presidential Decree.

According to EU Directive 1972/2018 (EECC), the state should provide a key feature of the regulator’s independence: a head and members of the National Commission can be dismissed from office early if they no longer meet the conditions set by law before their appointment.

However, the current version of the draft law 4066 includes another two grounds for early dismissal from office:

  • unsatisfactory conclusion of the Expert Council on the results of regulator’s activities for the previous year;
  • unsatisfactory conclusion of the relevant Verkhovna Rada Committee on the results of the previous year.

At the same time, no clear criteria for such a conclusion are provided. Moreover, such grounds for dismissal do not meet European requirements for political independence and grounds for dismissal of members of the regulator.

We are convinced that non-compliance with the requirements for the national regulator’s independence will be a significant obstacle on Ukraine’s path to the EU Digital Single Market.