Following a positive vote in the Parliament, the EU’s largest telcos are now seeking to get consumers and businesses on side
European Parliament backs controversial proposal: On 13 June 2023, the European Parliament voted in favour of the latest annual Competition Policy Report, including an amendment introduced by French MEP Stéphanie Yon-Courtin that relates to the ongoing ‘fair contribution’ debate. Among various measures, the report calls for “a policy framework where large traffic generators (LTGs) contribute fairly to the adequate funding of telecom networks without prejudice to net neutrality”. In the Parliament’s view, the economic sustainability of telecoms networks is essential to achieving the region’s 2030 digital infrastructure targets and to delivering high performance connectivity for all EU citizens. It has therefore urged the EC to address persistent asymmetries in bargaining power as set out by the European Declaration on Digital Rights and Principles.
There are further legal obstacles to overcome: While the vote clarifies the positions of MEPs, it also lays bare how divisive the issue has been among EU lawmakers. The proposal was supported by many of the centre-right European People’s Party and the centre-left Socialists & Democrats, whereas the right-wing European Conservatives and Reformists (ECR) overwhelmingly voted against it. German MEP and competition policy rapporteur René Repasi is another opponent but only managed to include wording that seeks to ensure any future legislation protects the open internet. Ultimately, 428 of MEPs voted for the report, 147 voted against and there were 55 abstentions. Though this means the proposal has cleared a necessary legal hurdle, it would still need to pass the European Council and the parliaments of each Member State. At a recent meeting with Commissioner Thierry Breton, 18 of 27 communications ministers stated that they were opposed to a fair contribution or wanted it to be investigated further. So far, only a few countries (including France, Italy and Spain) have backed Breton’s plan for financial contributions from tech firms to telcos, with the Dutch Government one of those to have dissented.
Major operators launch the ‘Fair Share initiative’: Days after the Parliament’s vote, Deutsche Telekom, Orange, Telefónica and Vodafone came together to form the Fair Share initiative. A dedicated microsite outlines the current state of the market and the scale of the investment challenge, and calls for a regulation to direct LTGs to make financial payments to operators that reflect their share of data traffic. The well-structured, modern, graphic-led site is clearly seeking to shift the debate from EU policy circles and into the public domain. Improving awareness among consumers is one thing. Securing their support and influence, however, could prove challenging and may involve countering claims that fair share is essentially a tax that will be passed through on to end users.
