Big Tech May Have to Share Europe Network Costs Amid Pressure From EU Countries, Reveals Document

EU regulators were analysing in May if Alphabet's Google, Meta, and Netflix should share the cost for upgrading telecoms networks.

Advertisement
By Reuters | Updated: 2 August 2022 12:32 IST
Highlights
  • Big Tech contribution could give a EUR 72 billion boost to the EU
  • Making Big Tech pay for networks could threaten EU net neutrality rules
  • Italian government officials confirmed details of the joint document

The six largest content providers accounted for 55 percent of internet traffic in the EU

Photo Credit: Reuters

France, Italy, and Spain are stepping up pressure on the European Commission to come up with legislation that ensures Big Tech firms partly finance telecoms infrastructure in the bloc, a document showed on Monday.

This was the first time the three governments have expressed their joint position on the issue.

EU regulators said in May they were analysing the question of whether tech giants Alphabet's Google, Meta, and Netflix should shoulder some of the costs of upgrading telecoms networks.

Advertisement

In a joint paper, a copy of which was seen by Reuters, the three governments said the six largest content providers accounted for 55 percent of internet traffic.

"This generates specific costs for European telecom operators in terms of capacity, at a time they are already hugely investing in the most costly parts of the networks with 5G and Fiber-To-The-Home," the document said.

It urged that European telecom networks and large online content providers pay fair shares of network costs.

Advertisement

"We call for a legislative proposal...ensuring all market players contribute to digital infrastructure costs," the document said.

Two Italian government officials confirmed the details of the joint document. One of them said Rome's government was set to give informal support in its caretaking capacity ahead of a general election in September.

Advertisement

The French and Spanish governments did immediately respond to a request for comment.

According to a study released by telecoms lobbying group ETNO earlier this year, an annual contribution of EUR 20 billion (roughly Rs. 1.6 lakh crore) to network costs by the tech giants could give a EUR 72 billion (roughly Rs. 6 lakh crore) boost to the EU economy.

Advertisement

However, digital rights activists have warned making Big Tech pay for networks could threaten EU net neutrality rules, which they feared could be watered down in a deal with online giants to help fund telecoms network.

Any legislative proposal should "ensure fairness between users in accordance with the net neutrality rules, which is a core principle we absolutely need to preserve," the joint document said.

© Thomson Reuters 2022


Why is Oppo making strange choices with its flagship Reno series? We discuss this 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.
 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Big Tech, Google, Netflix, Meta
Advertisement

Related Stories

Popular Mobile Brands
  1. Mom (2025) Now Streaming on Amazon Prime Video: What You Need to Know
  1. NOAA’s GOES-19 Satellite Records Rare Eclipse With Distorted Lunar Path
  2. NASA’s Astrobee Robots Gain New Capabilities via Arkisys Partnership
  3. Mom (2025) Now Streaming on Amazon Prime Video: What You Need to Know
  4. Sumathi Valavu Now Streaming on ZEE5: Know Everything About Streaming, Plot, Cast, and More
  5. My Hero Academia: Vigilants Season 2 Now OTT Release Date: When and Where to Watch it Online?
  6. Oppo Pad 5 with ColorOS 16 Confirmed to Launch Globally on October 16
  7. Apple Reportedly Builds a ChatGPT-Like App to Test Next-Gen Siri
  8. PM Modi Announces BSNL’s 'Swadeshi' 4G Network, Over 97,000 Telecom Towers
  9. Bird-Inspired Robot With Innovative Wing Design Achieves Self-Takeoff and Controlled Flight
  10. NASA Prepares 2025 Carruthers Mission to Explore Earth’s Hidden Hydrogen Halo
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.