The big tech companies route enormous amounts of data through European networks. The Federal Government’s Monopolies Commission is nevertheless against an additional levy on network operators.
(Photo: dpa)
Berlin In a short report, the Monopolies Commission speaks out against the introduction of a so-called data toll. The document of the important advisory body of the federal government will be published on Wednesday and was already available to the Handelsblatt on Tuesday.
“From our point of view, there is no abuse of market power – at least not at the moment. So there is no need for regulation,” said Commission Chairman Jürgen Kühling. The EU Commission is currently preparing a corresponding infrastructure fee that large US tech companies would have to pay to the benefit of European network operators.
According to the current status, only the five to six largest sources of data traffic in Europe would be affected, for example the streaming provider Netflix or the Facebook group Meta. They would then have to negotiate “reasonable” access prices with the European telecoms industry. If no agreement is reached, an EU arbitrator would intervene. It is about potential payments of several billion euros.
While other EU countries such as France or Spain signaled goodwill, the German government has so far taken a critical stance, but has not taken a definitive position.
In their article, Kühling and his Commission colleagues fundamentally question the idea of a data toll, which is being promoted in Brussels primarily by Internal Market Commissioner Thierry Breton. For example, it is incomprehensible that there are not enough funds available for the expansion of mobile and fixed networks, as is sometimes claimed by the telecom companies. An infrastructure levy also carries the risk of market distortion, since smaller network operators such as German fiber optics or Netcologne might not benefit from the payments, said Kühling. A levy would “rather lead to excess returns for the big ones”.
The European telecommunications companies are demanding that large tech companies share in the costs of network expansion.
(Photo: imago images/Rupert Oberhäuser)
The arguments of the Monopolies Commission are essentially aimed at the “machine room” of the Internet, which is largely invisible to the public – and within it at the markets for so-called peering and IP transit. This involves fees that large data producers such as the Facebook group Meta pay to the network operators for their connection to the Internet. Deutsche Telekom is currently arguing with Meta in court because the European branch in Dublin, Ireland stopped making these payments.
>> Read also: Deutsche Telekom is in court with the Facebook group Meta
Regardless of this individual case, an increasing market power of the tech companies can be determined, but Alphabet and Co. have not yet “abused” them. Therefore, according to the Monopolies Commission, there is no justification for any kind of “cost contribution”.
However, this does not always have to be the case. In the future, the behavior of the tech companies could change, says Kühling. “In this case, however, the authorities would have to counteract antitrust law.”
For years, European politicians have been conducting a debate about the US tech industry’s shared responsibility for the growing amounts of data that it routes through European telecommunications networks. Network operators such as Deutsche Telekom and Vodafone now want the big internet companies to share in the costs of expanding fast 5G mobile communications and fiber optic internet, which runs into billions.
Last fall, the lobbyists’ battle brought about the currently discussed version of the data toll, according to which only companies responsible for more than five percent of data traffic in Europe would have to pay. Apple or Tiktok could therefore be spared.
The EU’s goal is a fast gigabit network by 2023
The EU Commission under President Ursula von Leyen (CDU) had already indicated last year that it was open to regulation. It is also about financing their ambitious goal of connecting all EU citizens to the fast gigabit network by 2030.
In mid-February, Commissioner Breton officially opened the consultation phase for the project and sent out questionnaires to those involved. Even if the implementation and some details are still open: From the wording it can be seen that he is serious and that the tech companies must expect such a levy.
However, government adviser Kühling sees a geopolitical project in Breton’s plans. His impression is that “it’s about a clumsy shift in returns from American tech companies to European telecommunications network operators”. If you want it that way, you should “rather introduce a tax”.
Kühling holds the chair for public law at the University of Regensburg. In addition to him, four other experts belong to the Monopolies Commission, including Dagmar Kollmann, who sits on the Supervisory Board of Deutsche Telekom.
More: The EU Commission wants to direct billions into the expansion of telecom networks