Europe’s new net neutrality battle could have global consequences

Thanks to an incoming tide of protectionism, along with the fact that Europe has promised to offer gigabit connectivity to all citizens by 2030, the telcos have a golden opportunity to try forcing companies like Meta and Netflix to help pay for new infrastructure. It surely doesn’t hurt that the relevant chief at the European Commission, Internal Market Commissioner Thierry Breton, is himself a former telco CEO who has already declared that “it is necessary to reorganize the fair remuneration of the networks.” Now he’s launched a consultation on the idea.

It’s worth pointing out that Europe’s telecoms regulators rejected a very similar telco proposal in 2012—and said just five months ago that nothing had happened since then to change their opinion. With European traffic volumes increasing at an even pace, they said there was no “adequate justification” for intervening in a market that’s working as intended. 

Would charging content providers be a net neutrality violation, though? At its broadest level, the principle of net neutrality holds that all internet traffic should be treated equally, in which case, yes, targeting particular content providers may be a violation. 

However, net neutrality is generally seen as regulating access rather than provision: It’s supposed to ensure that consumers can access one provider’s content the same as they can another’s. That’s certainly the framing of the EU’s net neutrality law, which is perhaps why the telcos think their proposals would be legal—they insist they wouldn’t block or throttle any company’s traffic if it refused to pay up. Of course, if European law demanded that fee, the big content providers would have to pay up or pull out.

Even if it does manage to avoid a clash with the EU’s net neutrality law, what’s being proposed would fundamentally change the commercial dynamics of the internet—and as those regulators have warned, nobody has explained why such a drastic shift is necessary. 

Given how influential EU tech law is on the international stage, what happens next will have ripple effects—so if any companies or organizations want to give their thoughts on the matter, the consultation can be found here.

Want to send thoughts or suggestions to Data Sheet? Drop a line here.

David Meyer

Data Sheet’s daily news section was written and curated by Andrea Guzman. 

NEWSWORTHY

Another Tesla discount. After Tesla dropped prices on its cars by as much as 20% in January, the company slashed prices again on Sunday. Now, the Model S sedan and Model X SUV are $5,000 and $10,000 cheaper. “We found that even small changes in the price have a big effect on demand, very big,” CEO Elon Musk said during Tesla’s investor day last week. When prices were slashed in January, some who purchased cars before the discount expressed buyer’s remorse saying they got duped.

Salesforce reduces employee bonuses. Fortune obtained an email showing that Salesforce employees will receive 70% of their annual “gratitude bonus” as a result of the company’s performance. The announcement comes just after Salesforce saw higher-than-expected adjusted profit margins in the last quarter. “However, even with that success in Q4, we continued to face a measured buying environment, and that affected new bookings,” CFO Amy Weaver and CPO Brent Hyder wrote to staffers.

Construction pause on Amazon’s HQ2. Amazon plans to welcome 8,000 workers to the first phase of its Northern Virginia headquarters when it opens in June, but has decided to shift groundbreaking on the second phase “out a bit.” Local officials say they understand the decision and that Arlington will still realize the benefits of the corporate campus. The internet giant has made a series of cost-cutting moves lately, including laying off more than 18,000 workers in January and announcing it will close eight of its Go convenience stores in Seattle, San Francisco, and New York City.    

Scammers are using voice-cloning tools. With just 30 seconds of someone’s voice somewhere online, scammers can make a clone and have it say anything. Misuse cases have been on the rise, and companies such as ElevenLabs are taking action by making cloning capabilities available only with a paid subscription to their service. It can’t stop everyone, but the company thinks it will force some people to think twice.

FOOD FOR THOUGHT

Is ChatGPT a good financial planner? People are using ChatGPT for a variety of tasks like writing emails or talking to matches on dating apps. But it can also chat with users looking for advice, so Fortune asked the bot to help make a plan to buy a home. It mostly worked, but a human financial planner will likely catch things the bot missed, such as potential changes in income and setting realistic goals.  

From the article: 

I was surprised to learn that ChatGPT was capable of outlining similar steps as a CFP might to help me hit my homeownership goal. From tackling high-interest debt, to accounting for other long-term goals like saving for retirement, it was able to provide a straightforward outline of the steps I might take to hit my goal.

IN CASE YOU MISSED IT

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Marc Andreessen: We’re heading into a world where a flat-screen TV that covers your entire wall costs $100 and a 4-year degree costs $1M, by Steve Mollman

Google’s Cloud CEO hits back at A.I. competitors and says it’s the ‘first minute of a new game’ after ChatGPT disruption in newly leaked audio, by Prarthana Prakash

Mark Zuckerberg warned not to attempt to lure teen users into trying to rescue his $26 billion ‘Horizon Worlds’ metaverse, by Christiaan Hetzner

Tesla is recalling thousands of Model Ys—and this time software can’t fix the problem, by Steve Mollman

BEFORE YOU GO

Body doubling helps workers’ productivity. If you’re a remote worker struggling to stay focused, consider tuning into TikTok. More than 100,000 people follow TikToker Nicole Onyia, who has gotten into the routine of livestreaming her workday as a data analyst. She refers to the time as “work alone together.” The idea is working alongside other people who are toiling away at their jobs—even a livestream of a total stranger—can boost your concentration and productivity.