Perhaps this signals a rethink by the Commission on fair contribution
Reuters reports that the European Commission wants to ask Big Tech and telcos within the European Union about their investment outlays and cloud infrastructure plans. This could be a precursor to tabling legislation to make those who generate most internet traffic pay towards the cost of the upgrading the networks that carry them.
Deutsche Telekom, Orange, Telefonica, Telecom Italia and other operators, plus telco trade associations including GSMA and ETNO, have petitioned the Commission for a “fair share contribution” from the handful of content provider that generate over half the traffic on their networks.
Alphabet’s Google, Netflix, Meta and Amazon claim this amounts to an internet traffic tax that could undermine Europe’s net neutrality rules. Some analysts, such as John Strand, point out that these rules were drawn up almost 30 years ago when email was the main traffic component and before the tsunami of video streaming had even been thought of.
Public consultation
The Commission plans to launch a public consultation with a detailed questionnaire next week, although the timing may still change, Reuters’ unnamed source said. It is likely to last about 12 weeks before the Commission drafts legislation that EU members countries and legislators need to agree on before it can become law.
The Commission is to ask Big Tech and telecoms what they are investing in, how this will evolve and whether there is an investment gap, the person said.
They will be asked on their views on a shift into cloud infrastructure and the investments needed for this as regulators want the debate to go beyond spending on cables and tower.
Regulators also want to know about the relationship between Big Tech and telecoms providers.
The Commission will ask participants in the consultation about the regulatory responses in other parts of the world, such as in South Korea and Australia, and the lessons learned from them.