The European Commission has been forced into a U-turn after member states rejected plans to adopt a WiFi-based system for self-driving cars to communicate with each other.

The WiFi plan ran into resistance because of concerns it would mean 4G or 5G technology could not be used for driverless cars in the future because it would not be compatible.

A number of countries had initially backed the Wi-Fi system proposed by the commission because it could be implemented immediately and potentially improve road safety in the short term.

The commission proposed legislation backing WiFi in March, causing friction in the car and telecoms industry and setting EU politicians against one another. Telecoms companies and some countries including Finland argued that a “technology neutral” approach would be better, allowing the use of WiFi and 5G-based systems that could offer even bigger road safety benefits in the future.

But a meeting on Thursday of the EU’s Committee of Permanent Representatives rejected the commission’s proposal after a number of states, notably Germany which has a heavy presence in the automotive sector, turned against the Wi-Fi plan over the course of the week.

The Council of the European Union is now likely to ask the commission to redraft the legislation and return it to be voted on by the end of year.

Violeta Bulc, the transport commissioner who had pushed for the existing proposal to be accepted, said she would work with member states to find a way forward. “We cannot miss this opportunity and lose valuable time to make our roads safer,” she said.

Phillip Malloch, chairman of the telecoms trade body ETNO, said: “Today’s decision is good news for road safety and its sends a clear signal that Europe believes in mobile solutions and 5G as enablers of the automotive industry”.

Mats Granryd, director-general of the GSMA mobile trade body, said the existing proposal would have “locked in an ageing radio technology” at the expense of better 5G-based systems in the future.

“Europe just got back in the connected car race against the US and China. Thousands of lives on the roads and thousands of jobs in our factories will be saved with this cutting-edge technology,” he said.

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