EU studying whether Big Tech should pay network costs

The
European
Union
(EU)
will
consult
the
technology
and
telecoms
sectors
on
whether
tech
giants
like
Google,
Meta
and
Amazon
should
subsidise
network
costs,
according
to
a
European
Commission
document
seen
by
Reuters
on
Tuesday.

EU
telecoms
providers
including
Deutsche
Telekom,
Orange,
Telefonica
and
Telecom
Italia
say
the
six
largest
content
providers
account
for
more
than
half
of
data
internet
traffic
and
should
contribute
their
fair
share.

The
providers
also
point
to
Netflix,
Apple
and
Microsoft.

The
tech
giants
say
the
idea
is
equivalent
to
an
internet
traffic
tax
that
could
interfere
with
Europe’s
net
neutrality
rules
treating
all
users
equally.

The
commission’s
query
is
part
of
a
19-page
document
the
EU
executive
drafted
before
it
proposes
legislation.

The
EU
executive
is
expected
to
publish
the
document
next
week
to
garner
feedback
from
telecoms
operators
and
Big
Tech,
although
the
timing
may
change.
The
next
step
is
an
agreement
with
EU
countries
and
lawmakers
to
finalise
the
legislation.

“Some
stakeholders
have
suggested
a
mandatory
mechanism
of
direct
payments
from
CAPs
(content
application
providers)/LTGs
(large
traffic
generator)
to
contribute
to
finance
network
deployment.
Do
you
support
such
suggestion
and
if
so
why?
If
no,
why
not?”
the
questionnaire
asked.

The
questionnaire
also
asks
who
the
mechanism
should
apply
to;
whether
it
would
negatively
impact
innovation,
the
internet
ecosystem
and
consumers;
and
whether
the
EU
should
create
a
continental
or
digital
levy
or
fund.

The
EU
will
also
query
Big
Tech
and
telecoms
providers’
investment
spending
and
future
developments,
confirming
a
Reuters
story
this
month.

“The
Commission’s
questionnaire
is
basically
asking
questions
that
seek
to
justify
the
‘fair
share’
narrative
pushed
by
big
telcos.
What
is
more,
it
seems
to
ignore
the
impact
on
consumers
and
fundamental
net
neutrality
protections,”
an
industry
source
said.

“The
Commission
is
also
asking
for
detailed
business
information,
such
as
peering
contracts,
that
is
usually
confidential.
This
effectively
excludes
key
stakeholders
from
taking
part.

About Author

AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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