EU Telecom, Copyright Reform Proposals Could Mean Big Changes for Internet Players

Over-the-top players with services equivalent to traditional telcos' would be covered by similar rules, not extending such regulation unduly, said the plan. Communications services that use numbers to enable all end-users to reach each other are similar to traditional telephony and SMS services, and will have to give their customers contract information and be subject to switching and emergency call rules, it said. OTT companies that don't use phone numbers, such as WhatsApp, will be covered by "more focused obligations," the EC said. They will have to ensure their servers and networks are secured; disabled users have equivalent access; and users can reach EU emergency number 112 if there's evidence it's needed for public safety reasons and the technical standards are available.

Some online services that post user-generated content (UGC) have become important content distribution channels. These services play an essential role in making content available, but rightsholders aren't always given the chance to decide how their works are used or whether they want to be remunerated, the EC said. The EC plan would require service providers to "take appropriate and proportionate measures to ensure the protection of user uploaded works, for example by putting in place content recognition technologies," it said.

Asked about the possibility of "American outrage" over additional red tape, Digital Society and Economy Commissioner Günther Oettinger said the rules would mean companies no longer will have to comply with 28 sets of regulations, bringing legal clarity to all. Europe could have chosen not to act, but there are platforms with billions of users that contribute very little to European musicians, he said. Some platforms say they’re neutral intermediaries, so the EC must make clear which ones are intermediaries and which are using content without remuneration, he said. To criticism that the proposal goes against the e-commerce directive's safe harbor protection for intermediaries that are merely pipes, Oettinger said the proposal to require providers to use content monitoring tools is based on the EU duty of care principle. Those kinds of services are available and they’re not that expensive, he said.

The telecom package calls for universal access to high internet speeds, 5G coverage in all urban areas, major roads and railways, and a new European electronic communications code aimed at spurring massive investment in new infrastructure. WiFi4EU would allow communities to offer free Wi-Fi access points to all citizens. The EC wants to reduce differences between regulatory practices in the use of spectrum by, among other things, creating more harmonized spectrum policies across Europe to provide full wireless coverage. The 5G plan calls for a coordinated commercial launch in 2020.

Copyright Plan Unpopular

The proposal is "disheartening," said Mozilla Chief Business and Legal Officer Denelle Dixon-Thayer. She accused the EC of regressing, saying the plan doesn't update copyright to the internet era and it introduces the "failed and harmful snippet tax" on news items posted by aggregators and search engines. The Computer & Communications Industry Association called the proposal "backward-looking," saying requiring content filtering technologies doesn't comply with the e-commerce directive ban on general monitoring and disrespects users' fundamental rights.

The regime will make it harder for consumers to remix, produce and share videos and music for fear of having their creations taken down by YouTube, Facebook and other platforms, said the European Consumer Organisation. The European Internet Services Providers Associations accused the EC of rocking legal foundations of Europe's digital economy by seeking to change intermediary liability protections and putting a chill on information society innovation by "paving the way for the introduction of news article ‘snippet taxes.’”

The European Publishers Council rejected the "widespread scaremongering" over neighboring rights for news publishers, saying the proposal simply will put publishers on a par with broadcasters and film producers. "Publishers will continue to provide share buttons so readers can share and link our articles as before," said EPC Executive Director Angela Mill Wade. EPC isn't seeking a links, or "Google," tax, a media briefing document said. "It's a bit rich for tech companies and online platforms to talk about publishers wanting to suppress innovation in European digital news, when many of these benefit from the lack of clarity around rights.”

The draft copyright directive "fails at every level," said European Digital Rights. "We would hardly expect obligatory filtering of all uploads to the Internet from the world's worse dictatorship, let alone the European Union.”

Telecom Reaction

Telecom proposals won cheers from the European Parliament Industry, Research and Energy Committee. ITRE wants citizens to have full access to high-speed internet connection at affordable prices, to ensure that different business models providing communications services are treated equally, and that spectrum is used efficiently to lay a good foundation for 5G, said Committee Chairman Jerzy Buzek, of the European People's Party and Poland.

The system "sends an important signal that the policy and regulatory landscape is shifting towards prioritising fibre investments " by focusing on infrastructure-based competition and regulatory tools such as duct access, said the Fiber to the Home Council Europe. The “gigabit Europe vision” -- which sees schools, universities, transport hubs and other socioeconomic drivers having access to 1 Gbps connectivity, and all households having access to connectivity with download speeds of at least 100 Mbps by 2020 -- was praised by the European Telecommunications Network Operators' Association. But it urged the EC and legislators to ensure the final law provides an effective boost to broadband rollout, including incentives for Europe's main investors, and a "sharp simplification of service regulation.”

Alternative telcos welcomed EC renewed commitment to safeguarding competition, end-user choice and consumer protection. The electronic communication code should focus more on physical access to specified network elements and/or facilities to ensure that competition continues, said the European Competitive Telecommunications Association. The proposal "paves the way for one of the most important aspects of the 2015 Digital Single Market Strategy: connectivity as the backbone of the European Gigabit Society," said Vodafone. It urged the commission to raise its game on the 100 Mbps connectivity target, saying everyone should have 1 Gbps. The telco criticized the EC for stopping short of full harmonization of spectrum management.

CCIA Europe Vice President James Waterworth faulted the EC for including online communications services in the scope of telecom rules, saying it will fragment the market and could drive away some popular communications options. He urged the EC to remain technology neutral to allow high-speed networks to be deployed as soon and as cheaply as possible.