An ultimatum from Europe to US companies: If we don’t exist, there is no Google!

Tensions between European telecommunications companies and large US technology companies are escalating. European telecom bosses say they need to help digital giants build the backbone of the internet, and they’re putting pressure on regulators to do so.

European telecommunications companies argue that large, mostly American, internet companies are expanding their businesses thanks to billions of dollars in carriers’ investments in internet infrastructure.

Google, Netflix, Meta, Apple, Amazon and Microsoft (Big Tech) account for almost half of all internet traffic today. Telecom companies feel they should pay fair share fees to meet their disproportionate infrastructure needs and help fund the rollout of next-generation 5G and fiber networks.

What do telecom giants say?

The European Commission, the EU’s executive body, launched a consultation process last month examining how this imbalance could be remedied. Authorities are seeking opinions on whether to request a direct contribution from internet giants to telecom operators. Big tech firms say this would amount to an “internet tax” that could harm net neutrality.

Telecom companies are getting tougher in their rhetoric at MWC, arguing that they’re not making investments that match Big Tech’s expenses. “Without telecom companies, without the network, there would be no Netflix, no Google. So we are absolutely vital, we are the entry point into the digital world,” Michael Trabbia, France’s chief technology and innovation officer at Orange, told CNBC. said. Telecom companies agree that companies using network infrastructures should also pay them. Some Telecom giants, on the other hand, state that they demand a similar scheme by citing the system in the app stores of Google and Apple, which receive a share of in-app sales from developers in return for using their services.

What do the tech giants say?

The desire to charge for network usage has been strongly criticized by US tech giants. Netflix co-CEO Greg Peters described the situation as an “internet tax” while saying that such a system would have negative effects on consumers.

Tech firms say carriers are already charging their customers for investing in infrastructure – call, text and data fees – and now they want to get paid twice by demanding payment for the provider. Google’s head of EMEA, Matt Brittin, said in September that consumers may have to bear the costs charged from digital content platforms, which “could have a negative impact on consumers, especially at a time when prices are rising.”

It looks like a serious discussion of “fair sharing” and “net neutrality” is about to begin before us. The tech giants describe the proposed thing as fair sharing and that; It is stated to contradict the principles of net neutrality, which say that the internet should be free, open and not prioritize any service. Telecom companies, on the other hand, underline that the incident has nothing to do with them, and that the situation is entirely a “high cost burden”.

In fact, this is a situation that affects the end consumer the most. The only thing that can be understood from the statements made is that the user will be adversely affected. It’s a phrase that often reflects as a price increase to us consumers. Therefore, prices in the iOS and Android market may increase in the future, while other members of Big Tech may raise their service fees to offset the cost.