Report from Reuters
In Brief – A draft of the forthcoming Digital Networks Act (DNA) indicates that the European Commission will not propose requiring large online platforms and cloud providers to pay new fees to telecom operators. Expected to the released by Commission tech chief Henna Virkkunen, the overall proposal is framed as a major overhaul of Europe’s telecom and connectivity rules, aimed at boosting investment in fiber and next-generation networks while reducing regulatory fragmentation across member states. European network providers have argued for years that the largest digital platforms who provide the video-rich services that account for much online traffic should pay them mandatory levies to help fund network infrastructure expansion. Dubbed the “fair share” debate, the Commission appears to be again rejecting mandatory levies or enforceable duties on big tech through the DNA. Instead, large telecom and digital platforms providers would be encouraged to cooperate voluntarily through discussions overseen by BEREC, an EU forum for telecom regulators. The draft aims to promote greater harmonization on issues including spectrum license duration, auction conditions, and pricing methodologies to reduce the regulatory burden on telecom companies.
Context – European telecom executives have long been envious of their industry colleagues in South Korea, the one major market with a robust fair share regime of “data usage fees” for platform companies. Former EU Commissioner for the Internal Market Thierry Breton was sympathetic to the telecom industry proposal but opposition from Member State governments, EU Parliamentarians, industry regulators, and consumer advocates, shelved plans in 2023 and 2024. Imposing a new usage fee on US tech companies would only heighten tensions between Washington and Brussels as the Trump administration continues to press the EU over tech regulation and taxes, including network usage fees. The tech giants reject the idea as an “internet tax,” saying they already invest heavily in efficiency and data centers.