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(This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/05\/03\/coalition-says-no-eu-network-fee-please\/<\/a><\/br> A coalition of more than 50 European consumer and digitals rights groups, smaller ISPs and broadcasters have inked their name to a joint statement<\/a> urging EU policymakers and Member States to reject a controversial network fee proposal being lobbied for by major telcos in the region.<\/p>\n They suggest any move to legislative for a mechanism that funnels direct payments to telecom incumbents would have \u201cimmediate and wide-ranging\u201d negative consequences for European businesses and consumer interest \u2014 arguing it would hit consumer costs and choice by damaging the diversity and quality of products and services available online, as well as harming competition.<\/p>\n \u201cThe risks of introducing network fees are many but ultimately the biggest threats would be to consumer rights, costs, and freedom of choice,\u201d they warn. \u201cUsers of the internet and mobile networks are the key players in the debate, not content providers. Consumers access content (and thus drive internet traffic and take-up), so the fee would effectively be a fee on consumer behaviour and choice.\u201d<\/p>\n Signatories to the statement run the gamut from civil society groups such as Access Now, BEUC, EDRi and the EFF, alongside ISPs like Level7, Link Broadband, and Total Wireless, plus broadcaster groups and publishers such as the Sports Rights Owner Coalition, Motion Picture Association, and Wikimedia Europe, to name a few.<\/p>\n Major European telcos, meanwhile, want regional lawmakers to let them extract a network fee from Big Tech platforms whose popular services they claim are responsible for generating the most traffic across their fixed and mobile networks \u2014 spinning the ask to double dip (given consumers already paid them for connectivity), such as getting tech giants like Meta and Netflix to contribute what they dub a \u201cfair share\u201d toward funding network infrastructure costs.<\/p>\n While the likes of Meta have pushed back, saying that such a fee would actually be arbitrary and unfair<\/a>.<\/p>\n Thing is, the European Commission, which is responsible for drafting EU legislative proposals, has been sounding suspiciously sympathetic to Big Telco\u2019s lobbying.<\/p>\n Back in February<\/a>, internal market commissioner Thierry Breton appeared onstage at a major industry confab, MWC in Barcelona, where Big Telco gathers annually to hype the next flavor of connectivity, to personally evangelize the \u201cWeb 4.0\u201d \u201cconnectivity revolution\u201d he suggested would be speeding down carriers\u2019 pipes.<\/p>\n Simultaneously, Breton questioned the \u201ctraditional model of vertical integration\u201d \u2014 telling conference delegates: \u201cWe will need to find a financing model for the huge investments needed that respects and preserves the fundamental elements of our European acquis,\u201d and signposting the existence of an exploratory consultation on funding future networks <\/a> the Commission had launched <\/a>mere days before. (BTW: The deadline for contributions to this consultation<\/a> is now just a few weeks away, on May 19.)<\/p>\n While the Commission maintains no decisions have been taken on how the bloc should evolve funding mechanisms for internet connectivity to ensure infrastructure upgrades enable the next wave of disruptive digital services \u2014 saying it wants to take a comprehensive look to consider how best to proceed \u2014 signatories to the statement are concerned the process is biased in favor of Big Telco.<\/p>\n \u201cWe welcome the European Commission\u2019s decision to only launch an exploratory consultation on the matter, and many of us intend to submit contributions. That being said, we fear that the process could lead to misleading conclusions on the need for and consequences of a network fee,\u201d they write. \u201cThis fear seems to be shared by other stakeholders: leading MEPs have already publicly called this consultation \u2018biased\u2019 because of its assumptions and structure, which do not allow all stakeholders to contribute in an equal way (i.e. civil society, consumers, academia compared to ECNs and CAPs).\u201d<\/p>\n The coalition also argues there is no evidence of the need for such an extraordinary network fee, claiming: \u201cThe concept of the contribution stems from large internet providers proposing a favourable solution for a problem that has not been identified, justified nor clarified. This \u2018solution\u2019 would harm and discriminate against every other part of European business and consumer good, to the single benefit only of large telecom providers.\u201d<\/span><\/p>\n They also raise antitrust concerns, suggesting additional payments made direct to telco incumbents would only crank up the \u201cprofitability gap\u201d that already exists between traditional telecom operators versus smaller alternative operators and MVNOs; and versus other content services providers that rely on telcos\u2019 networks to provide \u201cvital competition and choice for consumers,\u201d as their statement puts it. <\/span><\/p>\n The prospect of the Commission taking steps to cement Big Telco\u2019s grip on connectivity does seems at odds with recent moves by the Commission to regulate Big Tech\u2019s market muscle, under the incoming Digital Markets Act<\/a> \u2014 lending weight to a critique of pro-telco bias in the upper echelons of the EU\u2019s executive.<\/p>\n Six parliamentarians (including five MEPs) have also co-signed a separate statement<\/a> today supporting the coalition\u2019s concerns over \u201cthe Commission\u2019s approach on the network fees.\u201d The lawmakers also warn the proposal \u201crisks unprecedented impacts to net neutrality, to the health of competition and content, as well as to consumer welfare, choice and costs.\u201d<\/span><\/p>\n While Thomas Lohninger, from the digital rights NGO epicenter.works (another signatory to the coalition statement), takes direct aim at Breton, writing in another supporting statement, \u201cNever in the last decade has the European Commission appeared so captured by special interests and shown such disrespect for its own due diligence principles. Former France Telecom CEO and current commissioner Thierry Breton seems determined to sacrifice consumer choice, competition and the open internet for the profits of the telecom industry.\u201d<\/p>\n So, er, ouch!<\/p>\n We\u2019ve reached out to the Commission for a response to the claims of bias and the wider concerns raised about the network fee proposal.<\/p>\n \u201cThe threat to competition is even more obvious if we consider the Commission\u2019s proposed Recommendation on regulatory promotion of Gigabit connectivity,<\/a> published alongside the exploratory consultation,\u201d the 50+ signatories on the joint statement go on. \u201cEuropean alternative operators\u2019 have already warned that the draft Recommendation would have \u2018detrimental impacts on competition, on the EU internal market and on consumers\u2019 interests,\u2019 due to its focus on \u2018increasing the profitability of ex-monopoly telecom operators\u2019 (via lighter price control obligations). The pattern is thus clear \u2014 as is the risk of disproportionately enhancing the power of telecom incumbents, whether by deregulation or via direct contributions.\u201d<\/p>\n
\n50+ ISPs, NGOs and broadcaster groups hit out at \u2018Big Telco bias\u2019 driving anti-competitive EU network fee proposal<\/br>
\n2023-05-03 21:50:49<\/br><\/p>\n