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Why is the EU asking Big Tech and telcos to submit their investment plans?

The EU commission intends to ask for plans before rolling out legislation to compel Big Tech companies to pay for network costs

We missed this earlier It is likely that Big Tech and telecom companies based in the European Union (EU) may have to submit their plans related to their investment outlay and cloud infrastructure to the European Commission (EC), according to a report in Reuters. The questions will revolve around how the companies plan to invest, what will they be investing in, and if there is a gap in investment, the report added. The commission intends to ask for plans before it rolls out legislation which will compel Big Tech companies to pay for network costs, as per Reuters. Why it matters: The report indicates that Europe is moving ahead with its plan to levy an interconnection fee on Big Tech companies after floating the idea in 2022. It is a matter of concern as the proposal is detrimental to a free and open internet and threatens net neutrality protections. What else do we know: It is being suggested that the EC wants to understand the relationship between telcos and companies like Alphabet, Netflix, Meta, etc. through this move. Furthermore, the report said that companies will be expected to share their views on a shift into cloud infrastructure and the attendant investments. The motive behind this measure is to ensure that the debate goes beyond spending on cables and towers, Reuters reported. Understanding Sending Party Pays: The proposal can be understood with the help of ‘Sending Party Pays‘ which argues that it should always be the sending party network (a company…

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I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

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