The European Commission wants to question big tech and European Union telecom operators on their capital spending and cloud infrastructure plans before submitting legislation that could force the former to pay network costs, a person familiar with the matter said on Tuesday.
Deutsche Telekom, Orange, Telefonica, Telecom Italia and the big operators say such a move involves a fair contribution, as the top six content providers account for just over half of the internet’s traffic.
Google, Netflix, Meta, Amazonand other tech giants say the idea amounts to an internet traffic tax that could undermine Europe’s net neutrality rules, which treat all users equally.
The commission plans to launch a public consultation with a lengthy questionnaire next week, although the timing is subject to change, the person said. It will likely take around 12 weeks for the Commission to present draft legislation, which EU countries and EU lawmakers will need to draft before it can become law.
The Commission will ask Big Tech and telecoms, what they are investing in, how that will play out and if there is an investment gap, the person said.
They are asked for their opinion on a move to cloud infrastructure and the investments required to make it happen, as regulators want the debate to go beyond spending on cables and towers.
Regulators also want to know about the relationship between big tech and telecom providers.
The Commission will ask respondents about regulatory responses to network charges in other parts of the world, such as South Korea and Australia, and lessons learned.
© Thomson Reuters 2023
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