Meta Says Subsidies From Big Tech Should Be Last Option for EU Telcos

Telcos that receive subsidies should also face strong regulatory oversight, Meta said.

Advertisement
By Reuters | Updated: 16 June 2023 00:39 IST
Highlights
  • The European Commission launched a consultation early this year
  • Companies such as Meta said such move would not solve telcos' issues
  • A majority of European Union countries have also rejected the push
Meta Says Subsidies From Big Tech Should Be Last Option for EU Telcos

Deutsche Telekom, Orange, Telefonica and other operators have lobbied for US tech giants to contribute

Meta Platforms said on Thursday subsidies from Big Tech should be the last option for European Union telecoms operators trying to get US companies to foot some of their network cost.

Deutsche Telekom, Orange, Telefonica and other operators have lobbied for two decades for US tech giants to contribute to 5G and broadband roll-out, saying they create a huge part of the region's internet traffic.

The European Commission launched a consultation early this year on whether tech giants should bear some of the costs of Europe's telecoms network.

Companies such as Meta have said such a move would not solve the telcos' financial problems and ignores hefty investments by tech companies.

Advertisement

Telcos that receive subsidies should also face strong regulatory oversight, including a process to ensure the funds are only used for network investment, Meta said in a response to the European Commission's exploratory consultation on network fee.

A majority of European Union countries have also rejected the push to levy a network fee on Big Tech, sources told Reuters earlier this month.

Advertisement

The European Commission did not immediately respond to a Reuters request for comment.

Meta said "the Commission should first require a demonstration by any telco seeking subsidies that it has first engaged with CAPs (content application providers) in good faith to reach technical, non-subsidy solutions".

Advertisement

It added any subsidies be awarded by a tender to ensure availability to all network operators, not just the large players.

"Incumbent operators receiving the functional equivalent of government bailouts should have additional restrictions imposed on them such as elimination of executive bonuses, caps on compensation, freezes on dividends," it said.

© Thomson Reuters 2023


Apple's annual developer conference is just around the corner. From the company's first mixed reality headset to new software updates, we discuss all the things we're looking forward to seeing at WWDC 2023 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: Meta, telcom, EU telcos, big tech
Advertisement

Related Stories

Popular Mobile Brands
  1. Get Away (2024): British Comedy-Horror Film Now Streaming on JioHotstar
  2. Single Now Streaming on Amazon Prime Video: What You Need to Know
  1. Chaurya Paatam, A Crime-Comedy Film with a Twist, Now Streaming on Lionsgate Play
  2. Get Away (2024), A British Comedy-Horror Film, Now Streaming on JioHotstar
  3. Single Now Streaming on Amazon Prime Video: What You Need to Know About Telugu Romantic Comedy
  4. Top Five ChatGPT Prompts to Boost Productivity at Work
  5. Astronomers Discover Most Powerful Cosmic Explosions Since the Big Bang
  6. NASA’s IMAP Spacecraft Gears Up for Mission to Explore Solar System’s Edge
  7. Rocket Lab Launches Private Earth-Observing Satellite Toward Orbit for BlackSky
  8. NASA’s RASSOR Robot Digs Deep into Moon Mining Future with Successful Test
  9. Europa Could Briefly Sustain Life When the Sun Becomes a Red Giant Star, Scientists Say
  10. Seismic Mystery Solved: NASA’s SWOT Satellite Detects Greenland Mega-Tsunamis
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.