As of 30 April, calling, texting or surfing online from one member state to another - roaming - will get cheaper.
The new rules cap the cost of using a phone when abroad in Europe to around four times less than current limits.
From July 2017, all phone companies will be required to scrap roaming fees for phone users travelling within the EU.
The removal of roaming charges has been staged to allow operators to make changes to the mobile marketplace.
The move was welcomed by British Liberal MEP Catherine Bearder who said it was one step closer to Europe becoming roaming-free.
When travelling in the EU, the new rules mean that mobile devices users will only pay a small amount on top of their domestic prices: up to €0.05 per minute of call made, €0.02 per SMS sent, and €0.05 per MB of data (excl. VAT).
This will be a short transition period since as from mid-June 2017, Europeans will pay the same price whether they use their mobile devices at home or somewhere else in the EU.
Announcing the new rules on Friday, Commission Vice President Andrus Ansip, who is responsible for the digital single market, said: "We're in the home stretch now before the end of roaming charges in 2017.
"This is not only about Europeans saving money, this is about bringing down barriers in the digital single market".
Further comment came from Commissioner Günther Oettinger, in charge of the digital economy and society, who said: "These rules protect the right of every European to access the online content of their choice, without interference or discrimination. They will avoid fragmentation in the single market, creating legal certainty for businesses and making it easier for them to work across border".
Reacting to the news, Bearder commented, "We are now one step closer to a roaming-free Europe. This is a huge win for consumers, making it easier to keep in touch and share your memories while abroad.
"Staying in the EU will mean lower prices, easier travel and more money in the pockets of British holidaymakers."
The move was also welcomed by UK Tory deputy Ashley Fox who said: "These caps on roaming charges will be of real benefit to consumers.
"The additional fees paid in the past were out of all proportion to the costs to the phone companies. Competition was failing to bring down prices and that is why these regulatory caps are justified.
"I look forward to roaming charges being abolished altogether next year, when people will be able to use their apps, make calls and send a text just as if they were at home."