5G wars: There may be good news coming for Google, Netflix and other tech companies in EU – Times of India
The European Union may have some good news for Google, Amazon, Facebook and other Big Tech companies. According to a report in Reuters, a majority of EU countries have rejected a push by Europe’s big telecoms companies to force major tech companies such as Google to help fund the rollout of 5G and broadband in the region. The report quotes people familiar with the matter. This means that it may be advantageous for Big Tech in 5G investment wars.
At a meeting with EU industry chief Thierry Breton in Luxembourg last week, telecoms ministers from 18 countries reportedly either rejected the proposed network fee levy on tech companies or demanded a study into the need and impact of such a measure. This is something similar to the views expressed by EU telecoms regulators’ group BEREC last month.
The European telecom ministers reportedly cited the lack of an analysis on the effects of a network levy, the absence of an investment shortfall, and the risk of Big Tech passing on the extra cost to consumers, the report added. They also reportedly warned about the potential violation of EU “net neutrality” rules. These rules require all users to be treated equally, as well as possible barriers to innovation and a lower quality of products.
What is the ‘big issue’
Deutsche Telekom, Orange, Telefonica and Telecom Italia want Big Tech companies to chip in part of the network costs. The reason for the demand is that their data and content makes up a large part of network traffic. Telecom companies argue that large internet firms have built their businesses on the back of the billions in investments that they have made in internet infrastructure.
Alphabet Inc’s Google, Apple Inc, Facebook parent Meta Platforms Inc, Netflix Inc, Amazon.com Inc and Microsoft Corp have firmly rejected the idea of the so-called network fee. Their stand is that they already invest in the digital ecosystem.
In support, and against
Critics of the network levy at the event are reported to include Austria, Belgium, Czech Republic, Denmark, Finland, Germany, Ireland, Lithuania, Malta and the Netherlands. Countries including France, Greece, Hungary, Italy, Spain and Cyprus were among 10 countries which backed the idea, as per the report. Poland, Portugal and Romania reportedly either took a neutral stance or had not adopted a position.
At a meeting with EU industry chief Thierry Breton in Luxembourg last week, telecoms ministers from 18 countries reportedly either rejected the proposed network fee levy on tech companies or demanded a study into the need and impact of such a measure. This is something similar to the views expressed by EU telecoms regulators’ group BEREC last month.
The European telecom ministers reportedly cited the lack of an analysis on the effects of a network levy, the absence of an investment shortfall, and the risk of Big Tech passing on the extra cost to consumers, the report added. They also reportedly warned about the potential violation of EU “net neutrality” rules. These rules require all users to be treated equally, as well as possible barriers to innovation and a lower quality of products.
What is the ‘big issue’
Deutsche Telekom, Orange, Telefonica and Telecom Italia want Big Tech companies to chip in part of the network costs. The reason for the demand is that their data and content makes up a large part of network traffic. Telecom companies argue that large internet firms have built their businesses on the back of the billions in investments that they have made in internet infrastructure.
Alphabet Inc’s Google, Apple Inc, Facebook parent Meta Platforms Inc, Netflix Inc, Amazon.com Inc and Microsoft Corp have firmly rejected the idea of the so-called network fee. Their stand is that they already invest in the digital ecosystem.
In support, and against
Critics of the network levy at the event are reported to include Austria, Belgium, Czech Republic, Denmark, Finland, Germany, Ireland, Lithuania, Malta and the Netherlands. Countries including France, Greece, Hungary, Italy, Spain and Cyprus were among 10 countries which backed the idea, as per the report. Poland, Portugal and Romania reportedly either took a neutral stance or had not adopted a position.
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