Google, Apple, Meta, Netflix May Have to Pay Network Costs as EU Launches Telecom Sector Consultation

European telecom companies argue companies including Amazon and Microsoft account for more than half of data internet traffic.

Advertisement
By Reuters | Updated: 23 February 2023 20:33 IST
Highlights
  • Big tech firms say move will undermine EU network neutrality rules
  • Any legislative proposal will need to be agreed with EU countries
  • The 12-week consultation will end on May 19

Tech group Computer & Communications Industry Association (CCIA) criticised the proposal

Photo Credit: Associated Press

The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's Google, Apple, Meta Platform and Netflix to pay some network costs.

For more than two decades Deutsche Telekom, Orange, Telefonica, Telecom Italia and other operators have lobbied for leading technology companies to contribute to 5G and broadband roll-out.

They argue companies including Amazon and Microsoft account for more than half of data internet traffic.

Advertisement

The tech firms in response call it an internet tax that will undermine EU network neutrality rules to treat all users equally. The 12-week consultation will end on May 19.

Advertisement

EU industry chief Thierry Breton cited the heavy investments required to roll out 5G and broadband, saying he was not targeting any company.

"The burden of these investments is heavier and heavier. And that is in part because of a low return on investment in the telecoms sector, the increase of the cost of raw materials, and the world geopolitical context, the cost of energy, of course, because that has a big role to play," he told a news conference.

Advertisement

"I want to say right away, that all of this reflection isn't aimed against anyone at all, rather it's for our fellow citizens," Breton said.

He said a contributions mechanism could be one of the solutions.

Advertisement

According to a document seen by Reuters last month, respondents will be asked whether large traffic generators should be subject to a mandatory mechanism of direct payments to finance network deployment and also whether the EU should create a continental or digital levy or fund.

"We hope to move very quickly so that in the summer we will be able to come back with conclusions and then we will see what we do to continue to make progress," Breton said.

Any legislative proposal will need to be agreed with EU countries and EU lawmakers before it can become law.

"This consultation is a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users," telecoms lobbying group ETNO said in a statement.

Tech group Computer & Communications Industry Association (CCIA) criticised the proposal.

"Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services," Christian Borggreen, CCIA Europe's senior vice president, said in a statement.

© Thomson Reuters 2023


The iQoo Neo 7 packs a lot of power at an affordable price. But did the company cut the right corners to keep the price low? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Bridgerton Season 4 Premieres in Two Parts on Netflix: See Details
  2. Nandamuri Balakrishna's Akhanda 2 Arrives on OTT in 2026
  3. Sister Midnight Streaming Online: Everything You Need to Know
  4. All the Details About Kunal Khemu's Comedy Drama 'Single Papa'
  1. Early Earth’s Deep Mantle May Have Held More Water Than Previously Believed, Study Finds
  2. Nandamuri Balakrishna's Akhanda 2 Arrives on OTT in 2026: When, Where to Watch the Film Online?
  3. Single Papa Now Streaming on OTT: All the Details About Kunal Khemu’s New Comedy Drama Series
  4. Scientists Study Ancient Interstellar Comet 3I/ATLAS, Seeking Clues to Early Star System Formation
  5. Bridgerton Season 4 to Release in Two Parts on OTT: When and Where to Watch It Online?
  6. Spider-Like Scar on Jupiter’s Moon Europa Could Indicate Subsurface Salty Water
  7. Wake Up Dead Man: A Knives Out Mystery Now Streaming on Netflix: Everything You Need to Know
  8. Secret Rain Pattern May Have Driven Long Spells of Dry and Wetter Periods Across Horn of Africa: Study
  9. Sister Midnight Out on OTT: Know Where to Watch This Radhika Apte-Starrer Online
  10. JWST Detects Thick Atmosphere on Ultra-Hot Rocky Exoplanet TOI-561 b
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.