The White House said yesterday that the European Union agreed to scrap a controversial proposal to make online platforms pay for telecom companies' broadband network upgrades and expansions. But European officials have not confirmed the White House claim, and a European Commission spokesperson said the issue must go through the legislative process.
A White House fact sheet on President Trump's trade deal with European Commission President Ursula von der Leyen contains a brief reference to Europe agreeing not to impose network usage fees.
"The United States and the European Union intend to address unjustified digital trade barriers," the White House said. "In that respect, the European Union confirms that it will not adopt or maintain network usage fees. Furthermore, the United States and the European Union will maintain zero customs duties on electronic transmissions."
Internet providers have been seeking payments from tech companies for many years. While tech companies pay for Internet access and sometimes build their own network infrastructure, telecoms claim that tech companies impose such a large burden on their networks that they should make additional payments to help pay for broadband construction. Telecoms call this a "fair share."
European officials are working on a Digital Networks Act that may or may not include a provision on network usage fees. A European Parliamentary Research Service briefing says the in-progress legislation could tackle "the network cost contribution debate," or "fair share."
“We have the sovereign right to legislate”
After yesterday's White House statement about Europe confirming that it won't adopt network usage fees, European Commission Spokesperson Thomas Regnier "denied that there has been any such confirmation," an MLex article said.
"What we're saying is that the Digital Networks Act would be a piece of legislation and that we have the sovereign right to legislate how we want to legislate," Regnier was quoted as saying. "There is a remaining issue, the fair share question. It doesn't date back to yesterday, and this will be addressed, but it has nothing to do particularly with the US. This has to be addressed in our upcoming legislation. This is precisely what we will be doing."