Following the European Commission’s launch of a consultation on a proposal to make content companies pay government-mandated fees to broadband providers, science and technology policy think tank the Information Technology and Innovation Foundation (ITIF), has called for rejection of the plan.

“The Internet ecosystem relies on negotiated agreements between broadband providers and content companies,” says Joe Kane, ITIF director of broadband and spectrum policy. “Both sides of the market serve consumers best when deals can be struck without the government putting its thumb on the scale in favour of ISPs or content companies.”

“The so-called ‘fair share’ proposal would increase costs and disincentivise efficient traffic management practices,” he suggests. “Moreover, it is impossible only to raise costs for ‘big tech’ companies. European consumers will see the costs passed on to them. As a result, consumers would pay higher prices for a lower-quality Internet experience. The European Commission should reject this proposal,” he declares.

Conversely, at MWC 2023 several telco CEOs have said their companies are ‘doomed’ without some kind of fair share regulation.

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Categories: Articles, Broadband, Business, Policy, Regulation, Telco

Tags: Big Tech, European Commission, Information Technology and Innovation Foundation, ITIF