Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Big tech should share Europe network costs - France, Italy, Spain document

Published 08/01/2022, 05:59 PM
Updated 08/02/2022, 02:25 AM
© Reuters. FILE PHOTO: The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, U.S., November 17, 2021. REUTERS/Andrew Kelly
GOOGL
-
NFLX
-
GOOG
-

By Elvira Pollina and Giuseppe Fonte

MILAN (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 (NASDAQ:GOOGL)'s Google, Meta and Netflix (NASDAQ:NFLX) should shoulder some of the costs of upgrading telecoms networks.

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

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

Two Italian government officials confirmed 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.

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 20 billion euros to network costs by the tech giants could give a 72-billion-euro boost to the EU economy.

© Reuters. FILE PHOTO: The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, U.S., November 17, 2021. REUTERS/Andrew Kelly

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.