The majority of EU nations have rejected a move by Europe’s large telecom operators to compel global internet giants like Google to contribute to regional 5G and broadband rollout funding.
According to the sources, telecoms ministers from 18 nations either rejected the proposed network fee levy on internet businesses or urged a study into the necessity and impact of such a measure during a meeting with EU industry chief Thierry Breton on Thursday in Luxembourg.
That reflected remarks made by the BEREC group of EU telecom regulators last month.
Due to the fact that Big Tech accounts for a sizable portion of network traffic with its data and content, Deutsche Telekom, Orange, Telefonica, and Telecom Italia want the company to pay a portion of the network costs.
They have found a sympathetic ear in the former CEO of France Telecom and French IT consultancy company Atos and the current industry leader for the European Commission, Breton.
The digital ecosystem is already supported by Alphabet Inc.’s Google, Apple Inc., Facebook parent Meta Platforms Inc., Netflix Inc., Amazon.com Inc., and Microsoft Corp., who have all opposed the idea of a levy.
The absence of a network levy impact analysis, the lack of an investment gap, and the possibility that Big Tech may pass along the increased cost to consumers were noted by the European telecom ministers, according to the sources.
Additionally, they issued a warning regarding the potential breach of EU “net neutrality” regulations, which demand that all users be treated equally, as well as potential obstacles to innovation and lower product quality.
According to the sources, Austria, Belgium, Czech Republic, Denmark, Finland, Germany, Ireland, Lithuania, Malta, and the Netherlands were among the nations that opposed a network levy.
However, one of the individuals claimed that France, Greece, Hungary, Italy, Spain, and Cyprus were among the ten nations that supported the proposal.
One person claimed that Poland, Portugal, and Romania either took a neutral stance or had not made a decision, but another claimed that they supported a network tax.
By the end of June, Breton is expected to release a report that includes a summary of the comments made by Big Tech, telecom providers, and other parties. This study will help him determine his future steps.
Before becoming legislation, any legislative proposal must be discussed and agreed upon by the EU member states and legislators.
