EU wants details on investment plans before legislation to make big tech companies pay for telecom networks
The European Commission wants to ask Big Tech and the European Union telecommunications service providers about their investment costs and cloud infrastructure plans before introducing legislation that could make providers previously had to pay network costs, a person familiar with the matter said Tuesday.
Deutsche Telekom, Orange, Telefonica, Telecom Italia and major operators say the move is aimed at giving a fair share as the six largest content providers account for just over half of data internet traffic. .
Google, Netflix, meta, Amazonand other tech giants say the idea is tantamount to an internet traffic tax that could undermine Europe’s net neutrality rules that treat all users equally.
The person said the Commission plans to conduct a public consultation with a lengthy questionnaire next week, although the timing is still subject to change. It will likely take about 12 weeks before the Commission drafts legislation that EU countries and EU lawmakers will need to pass before it can become law.
The Commission will require big technology and telecommunications what they are investing in, how will this develop and whether there is an investment gap, the person said.
They will be asked about their views on moving to cloud infrastructure and the investments needed for this as regulators want the debate to go beyond spending on cables and towers. .
Regulators also want to know about the relationship between Big Tech and telecom service providers.
The Commission will ask consultations about regulatory responses in other parts of the world to network fees, such as in South Korea and Australia, and lessons learned from these.
© Thomson Reuters 2023
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