The European Commission will not force tech giants to pay for telecoms infrastructure, opting for voluntary cooperation instead as part of a new digital networks strategy.
BRUSSELS: The European Union will not force major tech firms to pay for upgrading Europe’s telecoms networks.
The European Commission confirmed the decision, rejecting longstanding calls from telecom operators for ‘fair share’ payments from bandwidth-heavy companies like Netflix.
Telecom companies argue such firms should contribute to infrastructure costs.
Tech giants oppose the idea, warning it would lead to consumers paying twice for internet access and services.
The move honours a commitment made to the United States last year to avoid imposing network usage fees.
Instead, the Commission’s new Digital Networks Act proposes a voluntary cooperation mechanism between connectivity, content and cloud providers.
“We shouldn’t come with very strict like rules from the commission,” EU tech chief Henna Virkkunen told reporters in Strasbourg.
The tech industry expressed strong concern over the proposal.
“We are deeply concerned by the proposal’s ambiguous language,” said Maria Teresa Stecher of lobby group CCIA Europe.
She warned the mechanism “clearly opening the door to network usage fees”.
The proposed law aims to strengthen Europe’s fragmented telecoms market.
It seeks to make it easier for companies to operate across the bloc by registering in just one member state.
The Commission also proposed longer, renewable radio spectrum licences to increase predictability for operators.
Current rules mandate licences for at least 20 years.
Telecom industry body Connect Europe said the draft lacks bold, transformative proposals for investment.
The EU estimates over EUR 200 billion is needed to modernise Europe’s connectivity sector.
Brussels set a 2035 deadline for member states to transition from copper to faster fibre networks.
The draft law will now be discussed by EU member states and the European Parliament.
