Tech

Google, Facebook, Big Tech should pay network costs, Proposal of European Union telecom companies


Telecom operators are pushing for the European Union to implement new laws that make Big Tech pay for the network, following the Australian example, according to four sources close to the matter.

Europe’s telecom operators have been lobbying for financial contributions from US tech companies such as Alphabet‘S Google, Meta‘S Facebook and Netflixsay they use a large portion of the area’s resources Internet traffic.

The latest proposal, which has not yet been reported, is being discussed in the telecoms lobbying group GSMA, an association representing more than 750 mobile operators.

“The GSMA is coordinating a proposal to Big technology John Giusti, Managing Director of the GSMA, said it contributes to Europe’s infrastructure investment, without elaborating on the content of the proposal.

Giusti said a letter will be sent to EU Industry Director Thierry Breton within the next five to six weeks.

Google, Facebook, Netflix, Amazon did not immediately respond to requests for comment.

The proposal comes ahead of a 27-country bloc’s consultation on so-called “fair share” contributions from Google, Netflix, Meta and Amazon, which account for more than half of internet traffic.

These platforms reject the idea and treat it as a tax on internet traffic.

Sources say Australia’s recently passed laws along with Google and Facebook have become the telecom operators’ most favored weapon in the dispute with Big Tech companies.

The rules, which first aim to force tech giants to pay for online news content, allow an arbitrator appointed by the Australian government to set a fee if Big Tech companies and publishers News publishers do not find common ground on copyright.

Rupert Murdoch’s News last year reached a content supply agreement with Meta’s Facebook in Australia under the rules, helping to end a dispute that prompted the social media giant to briefly shut down thousands of pages in the country. .

Under Australia’s so-called binding “arbitration”, the parties must negotiate in good faith. But if an agreement cannot be made between them, they must present their offers and delay with the arbitrator to choose one.

The aim is to encourage tech giants and news publishers to reach an agreement before being forced to go through this final procedure.

Telecom operators that are part of the GSMA, including some of Europe’s biggest such as Orange, Deutsche Telekom and Telefonica agree that the Australian way is the best approach, the sources said.

Sources say no official documents have been sent to Breton yet. Officials are discussing whether the proposal will be made directly by the GSMA or from a group of executives, one of the sources said.

Breton said he would seek feedback from both sides before drafting legislation.

© Thomson Reuters 2022


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