Italy Proposes New Measures to Make Big Tech Share Telecom Costs

Italy is pushing forward with new legislation that would require major technology firms to contribute to the costs of developing the country’s telecommunications infrastructure, according to Industry Minister Adolfo Urso. The move, unveiled on Monday, seeks to shift some of the financial burden of rolling out high-speed networks onto tech giants like Alphabet’s Google, Meta’s Facebook, Amazon, Apple and Microsoft.

Telecom companies have long argued that these tech firms, which dominate global internet traffic, should bear a portion of the expense for expanding digital infrastructure. Companies such as Deutsche Telekom, Orange, Telefónica and Telecom Italia have termed this approach “fair-share funding.” On the other hand, tech companies claim the measure would effectively be an “internet tax.”

“We are all working on this issue. It’s important that we go in this direction,” Urso told reporters during an event in Milan, per Reuters. The minister emphasized that it was only logical for Big Tech to contribute to the significant workload handled by large telecom networks, which support the growing demands of online platforms.

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Italian lawmakers have already started drafting proposals that could lead to formal negotiations between tech firms and telecom operators. These proposals would require Big Tech companies to agree on the technical and economic terms of their contributions. Several members of Italy’s ruling political coalition have expressed support for this initiative, seeing it as a crucial step to ensure the sustainability of the country’s digital infrastructure.

One such proposal, presented by Andrea Dara of the League party, calls for a financial contribution from major online platforms, large search engines, and gatekeeper service providers. “Our proposal aims to introduce a contribution from online platforms, very large online search engines, and gatekeeper services to support investments in electronic communications networks,” Dara said in an amendment, according to Reuters.

This move follows similar discussions across Europe, where telecom providers have been advocating for Big Tech to play a larger role in financing network expansions. However, the debate remains contentious, with the tech sector cautioning that such measures could hinder innovation and increase costs for consumers.

Source: Reuters