
The European Union will consult the technology and telecommunications sectors on whether technology giants (Big Tech) such as Alphabet Inc (Google), Meta and Amazon.com Inc should subsidize the costs of telecommunications networks, according to an EU document that reviewed by Reuters and quoted by Agerpres.
EU telecoms providers, including Deutsche Telekom, Orange, Telefonica and Telecom Italia, say the six biggest content providers are responsible for more than 50% of all internet traffic and should bear part of the cost of infrastructure upgrades.
Content providers include Netflix Inc, Apple Inc and Microsoft Corp.
The tech giants say the idea is tantamount to a tax on internet traffic and could undermine European net neutrality rules, which require all users to be treated equally.
The consultation launched by the EC is part of a 19-page document drawn up by the Community executive before proposing the law.
The document is due to be published next week with responses from technology and telecommunications companies, although the timing of publication is subject to change.
The EU wants to know what investment plans big tech companies have
The next step will be an agreement with EU member states and the European Parliament to complete the development of legislation. The Commission will ask tech giants and telecom operators in the EU what they are investing in and how these investments will develop.
“The consultation launched by the EC includes questions that seek to justify the idea by telecoms companies that the tech giants should bear some of the cost of infrastructure upgrades. In addition, it appears that the impact on consumers and net neutrality rules will be ignored,” an industry source told Reuters.
“The EC will also ask for detailed business information, such as peering contracts, which are normally confidential,” the source added.
The new consultation comes after the EU adopted a 15% minimum tax on multinationals last December, almost a year after G20 leaders agreed to the measure.
Source: Hot News

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