"50+ ISPs, NGOs and broadcaster groups hit out at ‘Big Telco bias’ driving anti-competitive EU network fee proposal", 3 May 2023

A coalition of more than 50 European consumer and digitals rights groups, smaller ISPs and broadcasters have inked their name to a joint statement urging EU policymakers and Member States to reject a controversial network fee proposal being lobbied for by major telcos in the region.

They suggest any move to legislative for a mechanism that funnels direct payments to telecom incumbents would have “immediate and wide-ranging” negative consequences for European businesses and consumer interest — 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.

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...

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..., such as getting tech giants like Meta and Netflix to contribute what they dub a “fair share” toward funding network infrastructure costs.

While the likes of Meta have pushed back, saying that such a fee would actually be arbitrary and unfair.

Thing is, the European Commission, which is responsible for drafting EU legislative proposals, has been sounding suspiciously sympathetic to Big Telco’s lobbying.

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 — saying it wants to take a comprehensive look to consider how best to proceed — signatories to the statement are concerned the process is biased in favor of Big Telco.

The coalition also argues there is no evidence of the need for such an extraordinary network fee...

Six parliamentarians (including five MEPs) have also co-signed a separate statement today supporting the coalition’s concerns over “the Commission’s approach on the network fees.” The lawmakers also warn the proposal “risks unprecedented impacts to net neutrality, to the health of competition and content, as well as to consumer welfare, choice and costs.”

While Thomas Lohninger, from the digital rights NGO epicenter.works ..., takes direct aim at Breton, writing in another supporting statement, “... 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.”

We’ve reached out to the Commission for a response to the claims of bias and the wider concerns raised about the network fee proposal.

Update: A Commission spokesperson has now responded, sending the following response:

First, we would like to clarify that the Commission’ current exploratory consultation is neither a  Commission “proposal”, nor a Commission “initiative” nor does it indicate any “Commission approach” on any of the topics it touches upon.
The consultation has a broad objective of identifying Europe’s needs in terms of connectivity infrastructure to lead the digital transformation and tackles several topics, such as spectrum and single market for telecoms, which may need to be addressed to ensure this infrastructure can be delivered.

The spokesperson also reiterated a prior claim that: “Reopening EU net neutrality rules has never been in question,” ... This is enshrined in the Open Internet Regulation, and it is also one of the fundamental principles in the “European Declaration on Digital Rights and Principles for the Digital Decade”, by the European Parliament, the Council and the European Commission.”