Cloudflare opposes EU plan to charge internet giants for developing communications networks

Cloudflare opposed the European Union’s proposal to introduce mandatory fees for the largest internet platforms to use local communication networks. According to the proposal, the platforms that generate most of the Internet traffic should help the telecommunications companies to pay for the modernization and expansion of their networks.

Image source: Cloudflare

Most of the content streamed over operator networks comes from Content and Application Providers (CAPs) such as Netflix and YouTube, who transmit the data to the worldwide networks and leave it up to the operators to deliver it to users. Telcos complain that they have to spend billions on new networks while CAPs make profits. In February 2023, the EU began consultations on whether CAPs should help build the networks they rely on to deliver services to consumers.

In the five largest companies – Google (Alphabet), Amazon, Facebook* (Meta*), Apple and Microsoft support – as expected – the idea of ​​such a “grid usage fees‘ and claim that they are already paying for submarine cables and other network infrastructure. Cloudflare’s objection to network fees stems from the fact that major European telcos do not practice open peering – a voluntary free connection to other networks. Cloudflare suggests that European carriers choose to pay for backhaul networks to transfer data between networks, which could result in additional network hops. The company fears that the EU proposal to use the network will effectively set the price of transit.

Cloudflare said in a statement: “We believe that regulatory interventions that force content and application providers to enter into paid peering agreements will force all other traffic onto a slow and congested lane. Furthermore, we fear that these intrusions will do nothing to achieve the goals of Europe’s digital decade, but will instead degrade the internet experience for consumers and small businesses.“.

Company officials noted thisher [Евросоюза] Ubiquitous connectivity goals are right, but the approach they take is wrong“.

* It is included in the list of public associations and religious organizations for which the court made a final decision to liquidate or ban activities on the grounds provided for in Federal Law No. 114-FZ of July 25. 2002 “On Countering Extremist Activities”.