Meta Platforms has suggested that subsidies from Big Tech should be the last resort for European Union telecoms operators attempting to get US companies to contribute to their network costs. Operators like Deutsche Telekom, Orange, and Telefonica have been advocating for two decades for tech giants to support the rollout of 5G and broadband, arguing that these companies generate a significant portion of the region’s internet traffic. Earlier this year, the European Commission initiated a consultation on whether tech giants should bear some of Europe’s telecoms network expenses.
Meta, along with other companies, has expressed the view that such a move would not solve the financial challenges faced by telcos and would overlook the substantial investments made by tech firms. In response to the European Commission’s consultation on network fees, Meta emphasized that telcos receiving subsidies should be subject to stringent regulatory oversight, ensuring that the funds are solely used for network investment.
According to sources, the majority of European Union countries have rejected the proposal to impose a network fee on Big Tech. The European Commission has not yet responded to Reuters’ request for comment.
Meta has recommended that the Commission require telcos requesting subsidies to demonstrate their good-faith engagement with content application providers (CAPs) to find non-subsidy solutions. Furthermore, Meta suggests that subsidies should be awarded through a tender process to ensure availability to all network operators, rather than just the major players.
Meta also proposes that incumbent operators receiving government-like bailouts should face additional restrictions, such as the elimination of executive bonuses, compensation caps, and dividends freezes.
In summary, Meta Platforms urges caution in relying on subsidies from Big Tech and emphasizes the importance of regulatory oversight and fair distribution of subsidies.
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