Google humbly opposes payment of fees to internet service providers
payment of fees to internet service providers – Google does not agree with European internet providers that the company should contribute to network investments. The European Commission (EC) is investigating whether tech companies should pay a fee to internet providers for the internet traffic they cause.
In order to cope with the growth of internet traffic, internet providers must make investments in their network. Internet service providers think it is unfair that they have to pay the costs for the data traffic that tech and streaming companies cause. Interest group ETNO therefore wants tech companies to contribute to the investment costs.
Google humbly opposes payment of fees to internet service providers
According to Google, telecom companies have been lobbying for such a fee for more than ten years. According to Google, the plans are bad for consumers, referring to the price increases of the moment. The company also underlines that it has already done its bit by investing millions of euros in networks and data centers.
“In 2021, we invested more than 23 billion euros, a large part of which was in infrastructure,” Google told Reuters. Google opened six large data centres in Europe in 2021 and laid twenty submarine cables worldwide, five of which were in Europe.
Google underlines that it has made investments in technical solutions that the company provides to internet providers. This reduces the internet traffic of, for example, YouTube to 99 percent.
European Commission research
The EC is currently investigating whether compensation is necessary. To this end, the EC has sent a questionnaire to internet service providers. With this, the EC wants to find out how much internet traffic has increased in the past three years. The EC also wants to know where the extra traffic comes from and what it costs the internet providers.
The questionnaire is also sent to tech and streaming companies. The EC wants to know to what extent their costs have increased due to the growth in use of these companies.
With the questionnaires, the EC hopes to get an answer to the question whether there is a market failure. If this is the case, the EC can intervene by imposing
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