European Commission Should Reject “Fair Share” Proposal, Says ITIF
WASHINGTON— Following the European Commission’s launch of a consultation on a proposal to make content companies pay government-mandated fees to broadband providers, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from Joe Kane, director of broadband and spectrum policy:
The Internet ecosystem relies on negotiated agreements between broadband providers and content companies. Both sides of the market serve consumers best when deals can be struck without the government putting its thumb on the scale in favor of ISPs or content companies.
The so-called “fair share” proposal would increase costs and disincentivize efficient traffic management practices. Moreover, it is impossible only to raise costs for “big tech” companies. European consumers will see the costs passed on to them. As a result, consumers would pay higher prices for a lower-quality Internet experience. The European Commission should reject this proposal.
For more on this issue see:
- Joe Kane and Jessica Dine, “Consumers Are the Ones Who End Up Paying for Sending-Party-Pays Mandates” (ITIF, November 2022).
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The Information Technology and Innovation Foundation (ITIF) is an independent, nonprofit, nonpartisan research and educational institute focusing on the intersection of technological innovation and public policy. Recognized by its peers in the think tank community as the global center of excellence for science and technology policy, ITIF’s mission is to formulate and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress.
