Here is how BMW defines the EDC system.
Electronic Damper Control (EDC).
Electronic Damper Control (EDC) reduces variations in wheel load, ensures tyres have excellent traction and counteracts bodyshell movement regardless of the weight your automobile may be carrying - and regardless of the state of the road's surface. EDC can even help shorten braking distances, meaning you enjoy outstanding comfort along with the best in BMW on-road safety.
Sensitive sensors constantly monitor all factors influencing the vehicle's behaviour and occupants’ comfort, including road conditions, load changes and vehicle speed. In a fraction of a second, the signals are analysed by the EDC microprocessor and orders are sent to the actuators on the shock absorbers, which, with the help of magnetic valves, are variably adjusted to provide optimal suspension.
Thanks to Electronic Damper Control, the tendency for the nose to dip when braking is practically eliminated. The influence of potholes and unevenness on the road surface are reduced to minimum. Whether you're behind the wheel or relaxing in the rear of the cabin, EDC delivers a remarkably smooth and comfortable ride.