Strand Consult, a mobile virtual network operator (MNVO) market consultancy, predicted that net neutrality and zero rating for MVNOs would become a nightmare of interpretation for EU telecom regulators. For example, the provision of a free Spotify service by car maker, Tesla, has meant that in Norway, the company is being regarded as a network operator and should be subject to regulation under EU and national telecom rules.!
The guidelines issued by the Body of European Regulators for Electronic Communication (BEREC) still remain controversial as the EU law does not even contain the words “net neutrality” or “zero rating” and this has given rise to regulatory arbitrage as well as legal challenges.
In some EU states a ban has been imposed, namely:
- European telecom authorities in Sweden, Netherlands, and Hungary have banned zero-rated mobile services, including music streaming apps such as Spotify and Hungry has also banned free video services.
- Sweden’s Post & Telecom Authority has pronounced Telia’s free social media and music services a violation of the EU law.
- Netherlands Authority for Consumers and Markets (ACM) threatened to fine T-Mobile €50,000 per day if it did not stop its free music program while the issue is litigated in Dutch courts and also KPN was ordered to end its free Spotify program.
At the same time, zero rating is allowed in other EU states, namely:
- Slovenian mobile operators have successfully sued their telecom authority for bans on zero rating and won the case.
- In Belgium, Proximus’ zero rating program was deemed acceptable by the regulator.
However in North American, telecom authorities allow zero rating and the FCC noted that it receives no complaints about free data from real consumers. Given that the EU continues to fall behind the US in investment and Internet innovation, the ban on pricing flexibility and partnerships seems misguided and a distorting factor in a converging marketplace
