Another “heavy punch”? EU trying to get tech giants to pay more for traffic, sources say

BABWNEWS

Sina Technology News Beijing time on January 11 morning news, according to reports, people familiar with the matter revealed that the European Commission is preparing to allow large technology companies and EU telecom operators to submit detailed information to introduce the company’s investment plans and cloud infrastructure solutions. Let the former bear a reasonable fee for network costs through legislation.

  Deutsche Telekom, Orange, Telefonica, Telecom Italia and several other large telecom operators claim the move is in pursuit of fair cost sharing. In Europe, the top six content providers account for more than half of data network traffic. Google, Netflix, Meta, Amazon and some other technology giants believe that the EU’s approach is equivalent to imposing a traffic tax, which will harm the principle of net neutrality in Europe.

  The European Commission is preparing to release a questionnaire next week for public comment, though the timing could change, people familiar with the matter said. It will take about 12 weeks for the European Commission to issue draft legislation, which will then be studied in-depth by EU countries and EU lawmakers, and the final draft may become law.

  The European Commission will ask big tech companies and telecom operators what they are investing in, how it is progressing, and whether there are investment gaps. Not only that, but the EU also wants to know what companies think about the transition to cloud computing infrastructure and the investment required for the transition, as well as the relationship between large technology companies and telecom operators.

  Also, the European Commission wanted participants to describe how other parts of the world, such as South Korea and Australia, have done in regulating network fees so that lessons can be learned from them.


Daniel J. Brown

Daniel J. Brown (Editor-in-Chief) is a recently retired data analyst who gets a kick out of reading and writing the news. He enjoys good music, great food, and sports, with a slant towards Southern college football, basketball and professional baseball.

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