Network fee on Big Tech not a viable solution to boost EU digital rollout, EU says

The European Commission has said it does not view imposing network fees on major technology firms as a practical solution to the ongoing debate over funding the expansion of 5G and broadband infrastructure across the bloc.

The controversy centres around a long-running dispute between Europe's major telecom operators such as Deutsche Telekom, Orange, Telefonica, and Telecom Italia and digital giants including Google, Meta, Netflix, Microsoft, and Amazon. The telecom companies argue that Big Tech should contribute to the cost of digital infrastructure, given the significant share of internet traffic generated by their services. They have labelled it a matter of "fair share" funding.

However, tech firms have pushed back, describing the proposal as an “internet tax” and highlighting their own investments to improve service efficiency.

The debate intensified following the publication of a U.S. White House fact sheet on 28 July, which, in reference to a recent EU-U.S. trade agreement, stated that the European Union had confirmed it would not introduce or uphold network usage charges.

Commission spokesperson Thomas Regnier clarified the EU’s stance during a press briefing, citing a White Paper issued in February last year. "Based on the findings of this White Paper, we have assessed and concluded that network fees are not a viable solution," Regnier said.

He also stressed that any such exemption would not apply exclusively to U.S. companies, in response to concerns over trade fairness.

Looking ahead, the Commission plans to propose the Digital Networks Act in November, which will present a broader strategy to improve Europe’s digital infrastructure without relying on network usage charges.

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